Dáil Éireann Debate, Friday - 7 September 2018
102. Deputy Sean Fleming asked the Minister for Finance the number of cases in which the Tax Appeals Commission has made a determination and direction to the Revenue Commissioners in respect of cases in which it has not implemented the direction in full in each of the years 2016, 2017 and to date in 2018; the estimated tax liability involved in these cases in each year; and if he will make a statement on the matter. [35648/18]
View answerIn response to the Deputy's question, I am informed by the Tax Appeals Commission (TAC) that it does not have an enforcement role to ensure that the Revenue Commissioners (Revenue) comply with determinations made by the Appeal Commissioners. Revenue are legally bound to comply with these decisions in accordance with section 949AM of the Taxes Consolidation Act (TCA), 1997. Pursuant to that provision, Revenue shall give effect to any determination made by the Appeal Commissioners unless the appeal has been appealed to the High Court in accordance with sections 949AP and 949AQ TCA 1997.
I am advised by Revenue that the making of a determination by the TAC is typically the final stage of a tax appeal, unless the determination is then appealed to the High Court. In giving effect to a determination against a tax assessment, Revenue is required to calculate the tax chargeable (if any) in respect of the amount assessed to tax. The result will be a withdrawal or amendment of the assessment, the making of a refund or the collection of any outstanding tax.
Section 949E(1) TCA 1997 allows the TAC to give a direction to Revenue (and to appellants) in relation to the conduct or disposal of an appeal. It is open to both Revenue and appellants to apply to the TAC to have a direction amended, suspended or set aside. Such an application is typically made where the parties (i.e. Revenue and appellants) are not in a position to comply with the time limits imposed by the TAC for the submission of certain types of information or documentation and request additional time to comply with the direction. As directions are essentially related to procedural matters associated with the particular appeal, Revenue does not compile statistics on directions given to it by the TAC.
A determination of an appeal is not a direction and cannot be amended, suspended or set aside. As determinations are made by the TAC on an ongoing basis, at any point in time there will be determinations yet to be implemented by Revenue. However, statistics on such cases are not compiled and are not available. Such instances would be rare and of not unreasonable duration given the statutory requirement for Revenue to give effect to determinations made by the TAC. In any event, as the appeal has been determined at this stage, the tax liability would no longer be estimated but would be established in line with the TAC determination.
There are currently fewer than ten determinations made by the TAC that are under appeal to the High Court and in relation to which the final tax liability has not yet been decided. The tax in dispute for these cases is approximately €3 million.
