Ireland Announces New Tax Amnesty Terms
The Irish tax authority, the Revenue Commissioners, has confirmed that taxpayers who have engaged in certain tax avoidance transactions may avail themselves of a new settlement opportunity, which is to be offered until June 30.
Legislation was contained in the Finance Act 2014 covering transactions taking place on or before October 23, 2014. The scheme requires full payment of back taxes and 80 percent of the interest due, but waives the surcharge, which can be up to 20 percent for transactions that are successfully challenged by the Revenue under general anti-avoidance legislation.
To support tax practitioners, the Revenue published details of how the settlement opportunity will work and the types of tax avoidance schemes covered, in a briefing on January 30, 2015.
The tax agency noted that the Finance Act 2014 increased the surcharge payable in respect of failed tax avoidance schemes to 30 percent. Revenue Chairman Niall Cody said: “Those who have engaged in tax avoidance who do not avail of the settlement opportunity by June 30 will be challenged and their cases will be actively pursued through the appeal system.”