The purpose of the tax clearance schemes is to ensure that persons, who derive an economic benefit from a licence or permit to conduct certain activities in the State or from the receipt of public contracts, and/or receive certain grants, subsidies and other payments from the State, and/or hold certain public offices as specified in the Standards in Public Offices Act 2001, are in compliance with their tax obligations. The following is a general outline of the scheme and I am arranging for full details of the scope and nature of the various schemes to be forwarded to the Deputy by Revenue.
In the case of persons receiving economic benefit or in receipt of a grant or other payments the taxes covered are income tax, corporation tax, capital gains tax and value added tax. In the case of public office holders, as well as these taxes, capital acquisitions tax is also covered.
A tax clearance certificate will be issued by the Revenue Commissioners to a person whose tax affairs are up to date. This means that the person: has paid all relevant taxes, interest and penalties known to be due or agreed a payment schedule; and has delivered all required tax returns.
Where an applicant for tax clearance fails to meet the criteria mentioned, a formal notification of refusal will be issued to the applicant. This notification will set out the reasons for refusal of the tax clearance certificate. Provisions are made in the Standards in Public Office Act for the issue of an application statement in certain circumstances where a decision is pending or where a refusal is being appealed.