IRELAND Law and Practice Contributed by: Amelia O’Beirne and Trevor Glavey, A&L Goodbody
5. Anti-Avoidance and Anti-Evasion Measures 5.1 Definition and Identification of Tax Fraud, Evasion, Tax Avoidance and Abusive Schemes When it comes to fraud and evasion, for the purpos - es of revenue offences under Ireland’s tax legislation, “fraudulent evasion of tax” is defined in Section 1078 TCA to mean: • evading or attempting to evade any payment or deduction of tax required to be paid by the person or, as the case may be, required to be deducted from amounts due to the person; or • claiming or obtaining, or attempting to claim or obtain, relief or exemption from, or payment or repayment of, any tax to which the person is not entitled. The above must be accompanied by conduct that deceives, omits or conceals, or the use of any other dishonest means, including providing false or mis - leading information or failing to furnish information to Revenue. In this context, Revenue lists in its Code of Practice for Revenue Compliance Interventions (the “Code”) the following as the types of activity most likely to lead to prosecution: • deliberate omission from tax returns; • false claims for repayments; • use of forged or false documents; and • failure to remit fiduciary taxes. With respect to avoidance, as outlined in more detail in 5.2 Anti-Avoidance Mechanisms , Ireland’s tax leg - islation contains a general anti-avoidance rule (GAAR) (Section 811C TCA) whereunder a “tax avoidance transaction” is defined, in broad terms, as a trans - action in respect of which it would be reasonable to consider that the transaction gives rise to a tax advantage and the transaction was not undertaken or arranged primarily for purposes other than to give rise to a tax advantage. A “tax advantage” for these purposes essentially means a reduction, avoidance or deferral of any charge or assessment to tax or a refund of or a payment of an amount of tax, or an increase
corporate groups with a turnover of EUR750 million or more for accounting periods commencing on or after 31 December 2023. Ireland introduced the income inclusion rule (IIR) and qualified domestic minimum top up tax (QDMTT) with effect for accounting periods commencing on or after 31 December 2023, while, subject to limited exceptions, the undertaxed profits rule (UTPR) entered into effect for accounting periods commencing on or after 31 December 2024. Ireland continues to apply the 12.5% corporation tax rate to companies outside the scope of Pillar Two. 4.4 Specific Features or Deviations of Pillar Two The Irish implementing legislation moved a little beyond the OECD framework rule by expanding the scope of the QDMTT to apply to standalone enti - ties (ie, non-consolidating entities which breach the EUR750 million threshold in their own right), but excluding standalone investment undertakings. In January 2026, the “Side-by-Side” package of administrative guidance was released by the OECD. This package recognises that the US domestic tax regime can operate side-by-side with the Pillar Two rules. As such, where a multinational group has a US parent, the group may be excluded from the applica - tion of the IIR and the UTPR under Pillar Two, subject to electing into a safe harbour and satisfying certain conditions. The QDMTT is unaffected by the new safe harbours and will continue to apply. Irish tax legis - lation will need to be amended to give effect to the Side-by-Side package, and it is expected that imple - menting legislation will be published in late 2026, but with retrospective effect for accounting periods com - mencing on or after 1 January 2026. 4.5 Digital Services Tax Ireland has not implemented a digital services tax or any similar tax. Ireland also does not have concepts that would expand the ambit of source taxation to digital businesses specifically.
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