Dáil Éireann Debate, Wednesday - 8 November 2017
99. Deputy Joan Burton asked the Minister for Finance if he will request the Revenue Commissioners to offer alternative methods of settlement such as arbitration to persons in view of the fact that a prompt hearing before the Tax Appeals Commission is impossible in relation to the huge number of open appeals against tax assessments; and if he will make a statement on the matter. [47309/17]
Amharc ar fhreagraThe Tax Appeals Commission (TAC) is an independent statutory body whose main task is hearing, determining and disposing of appeals against assessments and decisions of the Revenue Commissioners concerning taxes and duties in accordance with relevant legislation.
I am advised by Revenue that it is always willing to engage in meaningful settlement discussions with appellants, even after an appeal has been made to the TAC. Indeed, it has always been the case that a large number of appeals are settled by agreement between the parties rather than by being determined by the Appeal Commissioners. Such settlement discussions routinely involve a professional adviser retained by the taxpayer in question. This type of settlement, however, is more likely where the dispute involves the amount of a tax liability or there is a difference of opinion in relation to the facts of a case. There are many cases where there is no potential for informal settlement, in particular with appeals that involve the determination of a point of law.
The Appeal Commissioners were specifically recruited because of their expertise and ability to adjudicate and determine disputes involving complex tax matters. It is appropriate that tax disputes involving points of law and complex tax matters continue to be determined by them, where the matter cannot be resolved directly between the parties.
I am also advised that Revenue’s understanding of arbitration is that an independent arbitrator makes a decision in a dispute that is binding on all parties. Revenue does not consider that this would be appropriate in the context of complex tax disputes. In certain cases, where Revenue does not agree with the determination of the TAC, and the matter may create a precedent that has significant implications for the Exchequer, it is important Revenue has the option of appealing the determination to the Courts.
