I am advised by Revenue that there is no provision in the legislation to impose penalties or other consequences on professional advisors involved in advising or implementing transactions in respect of which Revenue issue a Notice of Opinion under the general anti-avoidance legislation in section 811 of the Taxes Consolidation Act (TCA) 1997, or an assessment under section 811C of the TCA 1997, and which subsequently result in an additional tax yield when finalised.
The Deputy should be aware that Finance Act 2010 introduced a Mandatory Disclosure Regime, the purpose of which is to ensure tax advisors and promoters of certain types of transactions as defined, provide information to Revenue on the nature of the transaction together with other details. This ensures Revenue is informed of these transactions and can determine if they consider the transaction represents tax avoidance and if so, the action they consider appropriate.
Failure to comply with this Mandatory Disclosure Regime may result in an advisor or promoter becoming liable to a civil penalty, as provided for in section 817O of the TCA 1997. The quantum of penalty is related to the level of non-compliance with the reporting requirement. I am advised by Revenue that to date they have not identified any such non-disclosure cases.
