On November 20, 2015 the Irish Revenue published an update of its Code of Practice for Revenue Audit and other Compliance Interventions.
According to a Revenue eBrief published in this respect, the updated Code will be effective from November 20, 2015. The eBrief furthermore states: “As regards compliance interventions, notice of which had been given but which had not been settled before the 20th November 2015, the taxpayer may choose whether the settlement is made under the terms of this Code of Practice for Revenue Audit and other Compliance Interventions or the Code of Practice for Revenue Audit and other Compliance Interventions dated 14th August 2014. ”
With respect to the purpose of the Code of Practice the Code itself states the following: “The purpose of this Code of Practice is to set out a clear, fair and equitable set of guidelines to be followed by Revenue, taxpayers and tax practitioners, in the carrying out of all Revenue Compliance Interventions, having regard to best practice and legislation.
The provisions of this Code of Practice are not to be used unnecessarily to delay or obstruct the due process of the application of tax legislation by Revenue carrying out duties on behalf of the State. Taxpayers or tax practitioners acting on their behalf cannot abuse the rights recognised in this Code of Practice to avoid or delay payment of tax, interest or penalties which are correctly owed. The Code of Practice does not restrict the taxpayer’s statutory rights.
This Code of Practice will be reviewed on an on-going basis and may be modified to reflect changes in legislation and emerging practices.”
The Code of Practice consists out of 8 Chapters and contains 7 Appendixes. Subjects discussed in the Code of Practice include a.o.:
· INTRODUCTION
o Purpose of this Code of Practice
o Taxes and Duties Covered by this Code of Practice
o Promoting Voluntary Compliance
o Tackling Non-Compliance
o Selection of Taxpayers for Compliance Intervention
o Revenue Compliance Interventions
o Excise Licences Compliance
o Compliance with Customs Code and Implementing Provisions
o Electronic Support Tools and Techniques
o Respective Roles and Responsibilities in relation to Compliance Interventions
o Compliance Code for PAYE Taxpayers
o Operation of this Code of Practice
· OVERVIEW OF REVENUE COMPLIANCE INTERVENTIONS
o Objective of Revenue Interventions
o Types of Revenue Interventions
o Revenue Non-Audit Compliance Interventions
o Notification of a Revenue Non-Audit Compliance Intervention
o Definition of a Revenue Audit
o Notification of a Revenue Audit
o Definition of a Revenue Investigation
o Notification of a Revenue Investigation
· REGULARISING TAX AND DUTY DEFAULTS
o Regularising tax and duty affairs
o Self-Correction without Penalty
o Correcting an Innocent Error
o Technical Adjustments to tax or duty liability
o No Loss of Revenue
o Qualifying Disclosure
o Definition of a ‘Qualifying Disclosure’
o Definition of a Prompted Qualifying Disclosure
o Definition of Unprompted Qualifying Disclosure
o Exclusions – Disclosure not regarded as a Qualifying Disclosure
o First, Second, Third & Subsequent Qualifying Disclosures and Penalties
o The 5-year Rule regarding Qualifying Disclosures
o Period to prepare a Qualifying Disclosure
o Examination of Unprompted or Prompted Qualifying Disclosures
o Qualifying Disclosures – Requirements Summary Chart
o Full Cooperation – No Qualifying Disclosure Made – Penalties
o Capital Gains Tax Valuations
o Capital Acquisitions Tax and Stamp Duty Valuations
o Local Property Tax Valuations – Penalties
o Arrears of Declared Taxes and Duties
o Maintenance of Records
· THE REVENUE AUDIT
o Location of Audit and Expected Attendees
o Conduct of a Revenue Audit
o Materiality in Settlements
o Obstruction
o Years, Periods and Issues for Audit
o Auditing Earlier Years, Later Years, Periods or Issues
o Review of Cases Previously Audited
o Indications of a Serious Tax Offence
o Data Protection Act
· FINALISATION OF A REVENUE COMPLIANCE INTERVENTION
o Monetary Settlement
o Basis of Compliance Intervention Settlement
o Interest
o Surcharge for Late Submission of Returns
o Penalties
o Categories of Behaviour: Careless and Deliberate
o Fixed Penalties
o Timeframe for Concluding Revenue Interventions
o Payment
o Inability to Pay Claims
o Complaint and Review Procedures – Appeal Procedures
· PUBLICATION IN LIST OF TAX DEFAULTERS
o Obligation to Publish
o Exclusions from Publication
o Publication Figure
· PROSECUTION
o Introduction
o Types of tax offences that are most likely to be prosecuted
o Decision to investigate with a view to prosecution
o Other Prosecutable Offences
o Provision of Sales Suppression Software
o Incorrect Returns, Statements or Accounts
· TAX AVOIDANCE
o Introduction
o General Anti-Avoidance Rule
o Specific Anti-Avoidance Provisions
o Tax Avoidance Surcharge and Interest
o Protective Notification
o Qualifying Avoidance Disclosure
o Mandatory Disclosure – Protective Notification & Qualifying Avoidance Disclosure
o Qualifying Avoidance Disclosure and Self-Correction Without Penalty
o Technical Adjustment
o Qualifying Avoidance Disclosure - No Publication
o Expression of Doubt
o Surcharge for Late Filing of Return
o Tax Avoidance Surcharges and Interest
The Code Code Practice furthermore contains the following Appendixes:
· Appendix I – Customer Service Charter
· Appendix II – Timelines and Disclosure Opportunities
· Appendix III – Penalty Legislation
· Appendix IV – Penalty Table for Tax Defaults that occurred before 24/12/2008
· Appendix V – Legislation governing maintenance of records
· Appendix VI – Revenue Powers
· Appendix VII – Penalties in Death Cases
Click here to be forwarded to the updated Code of Practice for Revenue Audit and other Compliance Interventions as published on the website of the Irish Revenue, which will open in a new window.
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