Dáil Éireann Debate, Thursday - 19 July 2012
84 Deputy Michael McGrath asked the Minister for Finance if he will provide details of the Revenue Commissioners’ investigation under way into a syndicate of almost 200 individuals using an intricate offshore tax avoidance scheme; if he will provide an indication of the amount of money involved; and if he will make a statement on the matter. [36160/12]
Amharc ar fhreagraFor reasons of taxpayer confidentiality the Revenue Commissioners do not comment on or provide information in relation to the tax affairs of any particular individual or group of individuals. However, I assume the Deputy's question is based on a newspaper report of 8 July 2012. I am informed that enquiries in relation to this matter are ongoing at present and the Revenue Commissioners are not currently in a position to indicate the tax at risk.
Revenue's Anti-Avoidance Unit specifically deals with the identification and challenging of aggressive tax avoidance schemes and unintended use of legislation that threatens tax yields and the perceived fairness of the tax system. Where Revenue becomes aware of tax avoidance schemes, it investigates such schemes. In general tax avoidance is tackled in two ways, by challenging the individual cases as they arise or through the use of the general anti-avoidance provisions in Section 811 Taxes Consolidation Act 1997. In addition, where Revenue identifies any artificial tax avoidance arrangements that require specific anti-avoidance rules, it will recommend appropriate legislative amendments to my Department for consideration in the context of the annual Finance Bill.
In addition the Mandatory Disclosure regime introduced in the 2010 Finance Act came into effect on 17 January 2011 (first disclosures were required by 15 April 2011). This legislation requires promoters of certain tax-based schemes to disclose them to Revenue shortly after they are first marketed or made available for implementation. This regime is designed to act as an "early warning" system in tackling tax avoidance schemes. The objectives of this regime are:
To obtain early information about certain tax schemes and how they work,
To obtain information about who has availed of them, and
To close down by legislative action, or use of anti-avoidance provisions, any such schemes that are viewed as aggressive.
I can assure the Deputy that I strongly support the Revenue Commissioners in tackling aggressive anti-avoidance schemes and the unintended use of legislation that threatens tax yield and the perceived fairness of the tax system.
