Dáil Éireann Debate, Tuesday - 12 December 2017
125. Deputy Ruth Coppinger asked the Minister for Finance his plans to ensure that developers or landlords involved in State contracts for housing are not engaged in offshore tax avoidance; and if he will make a statement on the matter. [52259/17]
Amharc ar fhreagraA condition for the award of State contracts or the payment of providers of services on behalf of the State is that the tenderer or the service provider must have a current tax clearance certificate in respect of Irish tax.
Revenue administers the general scheme of tax clearance certification in accordance with section 1095 of the Taxes Consolidation Act 1997. The purpose of the tax clearance scheme is to ensure that businesses and individuals that derive an economic benefit from the State are in compliance with their tax obligations.
I am advised by Revenue that it also operates a wide-ranging compliance management programme to address tax compliance risk in all its forms. The compliance behaviour of a taxpayer determines the nature, extent and consequences of Revenue’s risk management interventions which range from aspect queries and profile interviews to Revenue audits, and prosecutions, both summary prosecutions and serious criminal investigations. Targeted annual projects include the construction and property rental sectors.
Revenue’s work and focus in regard to offshore matters has been strengthened by greater co-operation and information sharing between tax authorities worldwide. Revenue is now receiving details of offshore assets and accounts held by Irish tax-residents under a range of international agreements including the Inter-Governmental Agreement to share financial account information with the United States (FATCA), the OECD Common Reporting Standard, and the EU Directives on Administrative Co-operation.
Revenue uses software to match the data that it receives from other tax administrations to Revenue’s taxpayer records, then cross-checks against prior returns to ensure relevant income and assets have been declared. Revenue also feeds the data into its social network analysis and anomaly detection tools, to highlight cases where possible tax compliance risks may arise and such cases are then the focus of specific Revenue intervention as part of its ongoing compliance intervention programmers.
The Deputy will be aware that in the context of the aforementioned new information sharing initiatives and developments, the Government introduced specific measures in the Finance Act 2016 to ensure that, as and from May 2017, tax defaulters whose default relates to offshore matters are unable to avail of the benefits of the voluntary disclosure regime. Anyone who did not come forward by 4 May 2017 to regularise his or her tax affairs now faces the prospect of substantially higher penalties, publication in the Quarterly List of Tax Defaulters and possible criminal prosecution.
I am satisfied that the combination of Revenue’s risk identification and evaluation processes, its extensive access to relevant and expanding data sources and the overall tax clearance underpinned by a strong legislative regime that penalises and sanctions offshore tax evasion are an effective framework for tackling tax non-compliance.
