Committee of Public Accounts (PAC) publishes report ‘Examination of the 2019 Appropriation Account for Vote 10 – Tax Appeals Commission, and related matters’

In its report, PAC makes three recommendations regarding two issues which were identified by the Comptroller and Auditor General in his 2019 Appropriation Accounts – Vote 10 Tax Appeals Commission and his 2019 Report on the Accounts of the Public Service – Chapter 14, Tax Appeals Commission, and discussed with the Tax Appeals Commission in July 2021.

The Tax Appeals Commission was established in 2016 as an independent statutory body under the Finance (Tax Appeals) Act 2015. Its primary function is to make determinations on appeals by taxpayers against decisions of the Office of the Revenue Commissioners concerning taxes and duties. Chapter 14 of the C&AG’s 2019 report on the Management of Tax Appeals made five recommendations, three of which are addressed to the Commission. The Committee welcomed the Commission’s confirmation that these recommendations have been implemented.

PAC focused on Alternative Dispute Resolution (ADR), and staffing and case load at the Commission.

The Committee noted that ADR, which is defined as the use of processes, other than judicial determination, in which an impartial person assists those in a dispute to resolve issues between them, is part of the tax systems in the United Kingdom, New Zealand and Australia.

The Committee heard that there is support for the use of ADR in Ireland and that the Tax Appeals Commission has raised the matter with the Department of Finance and the Irish Tax Institute. However, while ADR processes take place between Revenue and taxpayers, there is no facility for the Commission to facilitate or direct them, PAC was told.

Deputy Brian Stanley, Cathaoirleach of Committee of Public Accounts, said: “The Committee is of the opinion that the Commission should have as many options as possible when hearing and adjudicating tax disputes to ensure potential liabilities to the Exchequer are resolved efficiently.

“PAC recommends that the Department of Finance provides the Committee with a report by end January 2024 detailing its considerations of alternative dispute resolution processes, and any developments in this regard in relation to the Tax Appeals Commission.

“We further recommend that the Commission includes, in all future annual reports, an additional breakdown of the number of appeals received in a given year for which a hearing or a case management conference has been held.”

Regarding staffing and case load at the Commission, the Committee heard that at the end of 2019, there were 3,357 open appeal cases, with a combined value of €3.8 billion. By the time of the meeting with the Commission on 8 July 2021, there were 2,906 appeals worth €4.2 billion.

Deputy Stanley said: “The need for additional commissioners to deal with the volume of appeals more efficiently was highlighted during the meeting. Given the number and quantum of appeals at issue, it is important that the Commission has sufficient resources to determine appeals within the timeframes it has set. The timely receipt by the Exchequer of funds arising from the Commission’s determinations is dependent on how efficiently the Commission progresses its caseload.

“Members welcome the significant decrease, from July 2021 to August 2023, in the number of appeals on hand, from 2,906 to 1,218, and the quantum involved from €4.2 billion to €720 million, alongside other improvements at the Commission. It also noted that that four additional appeal commissioners have been sanctioned, with a recruitment process to commence this month.

“The Committee recommends that the Department of Finance ensures that the recruitment of the four additional appeal commissioners is prioritised, in order that the Commission is able to continue to reduce the number of appeals on hand, and the quantum involved.”

The Report on Examination of the 2019 Appropriation Account for Vote 10 – Tax Appeals Commission, and related matters is available on the Oireachtas website.

The PAC is a standing committee of Dáil Éireann which focuses on ensuring public services are run efficiently and achieve value for money. Further information on the role and remit of the Committee can be found here.