I propose to take Questions Nos. 196 and 204 together.
I am aware of the recent judgment by the European Court of Human Rights in the case of L.B. v Hungary and Revenue and my Department are considering its implications for Ireland’s legislative framework which provides for publication of tax defaulters.
There are significant differences between the Irish and Hungarian provisions for publication of tax defaulters, which may have a bearing on how the Irish publication system is viewed under the European Convention on Human Rights.
At present, Revenue is legally required to compile and publish lists of certain tax defaulters. This system has been in place since 1983 and was revised most recently in Finance Act 2021, which provided for the current publication regime in section 1086A Taxes Consolidation Act 1997. The lists are compiled on a quarterly basis and published in Iris Oifigiúil within 3 months of the end of the quarter to which they relate.
Revenue does not have any discretion in the decision to publish these lists; it is legally obliged to publish them to comply with the legislation. Any change to the current publication regime would require a legislative amendment.
It should be noted that the taxpayers who makes a settlement over a certain sum with Revenue do not have their names and addresses automatically published in the quarterly list of tax defaulters. Settlements are not published where the penalty forming part of the settlement does not exceed 15% of the tax default; where the amount of tax forming part of the settlement does not exceed €50,000; or where the taxpayer has made a “qualifying disclosure” to Revenue. A qualifying disclosure means a disclosure of complete information in relation to, and full particulars of all matters occasioning a liability to tax that gives rise to a penalty, which is:
• made in writing, signed by or on behalf of the taxpayer,
• accompanied by a declaration, to the best of that person’s knowledge, information and belief that all matters contained in the disclosure are correct and complete, and
• payment of the tax and interest for late payment of that tax.
This means that the cases which feature on the list of tax defaulters are those where the penalty is over 15% of the tax due, the tax due exceeds €50,000, and where the taxpayer has either chosen not to make a qualifying disclosure, has made a disclosure which was not qualifying, or was not entitled to make a qualifying disclosure because they are subject to a Revenue investigation.
