I propose to take Questions Nos. 106 and 182 together.
I am advised by Revenue that a taxpayer, including a section 110 company, will be considered for a Revenue compliance intervention having regard to risk.
If an intervention is deemed appropriate it may be by way of audit or any other Revenue compliance intervention, based on an evaluation by Revenue of the presence of various risk factors that might indicate less than full compliance with tax legislation. Each Revenue compliance intervention is designed to be in the form which is most efficient in terms of both the time taken to carry it out and the resources needed to address the perceived tax risk. Depending on the progress or lack of progress of an initial compliance intervention and the nature and scale of non-compliance identified, the intervention can be escalated to an audit or investigation if this is necessary.
The number of non-audit compliance interventions (known as “aspect queries” which involves Revenue examining in detail particular aspects of a taxpayer’s activities) which Revenue carried out on section 110 companies was 348 in 2016 and 203 in 2017 (a total of 551 for the two years). As of 28 February 2018, 36 aspect queries in respect of section 110 companies have been finalised in 2018 to date. Moreover, there are 192 aspect queries currently underway in respect of section 110 companies.
Ireland’s money laundering compliance regime is governed by the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010.
In common with any other business or person operating within the State, Section 110 companies which fall within the definitions of designated entities under the Act are subject to anti-money laundering (AML) and countering the financing of terrorism (CFT) regulatory measures contained in the Act, and fall under the supervision of the relevant competent authority to ensure that they are in compliance with these obligations.
In addition to these direct measures, many companies will have solicitors, auditors, bankers, paying agents and registrars, which are subject to AML/CFT requirements in respect of their own customers.
Ireland’s AML regime has recently been peer reviewed by the FATF and this evaluation found that “Ireland has a sound and substantially effective regime to
tackle money laundering and terrorist financing ”. The competent authorities under the Act follow a risk-based approach in the supervision of their respective sectors and have established good cooperation with financial institutions and designated non financial businesses and professions. Coordination, cooperation and the use of financial intelligence are strong points of the Irish AML/CFT framework.
