IRELAND Law and Practice Contributed by: Amelia O’Beirne and Trevor Glavey, A&L Goodbody
Council Directive (EU) 2011/16 on administrative co-operation in the field of taxation, as amended (DAC) The DAC covers exchange of information relating to taxes of any kind levied by or on behalf of an EU member state (excluding VAT, customs and EU excise duties, as these are covered by other EU legislation) and obliges certain information to be exchanged between all member states of the EU. Exchanged information can be used for the assessment, admin - istration and enforcement of all taxes and duties. The DAC has been implemented in Ireland pursuant to the EU (Administrative Cooperation in the field of Taxation) Regulations 2012. Ireland’s tax treaties All of Ireland’s DTAs contain an exchange-of-informa - tion article (typically Article 26) that enables exchange of information. Ireland’s older DTAs provide for exchange of information relating to direct taxes only, but more recent DTAs provide for exchange of infor - mation relating to taxes and duties of all kinds. Ireland’s Tax Information Exchange Agreements (TIEAs) Ireland has a number of TIEAs in force. TIEAs typically cover exchange of information relating to direct taxes but, depending on the TIEA, other taxes can also be included. OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters (the “Convention”) The Convention, which has been implemented in Ire - land pursuant to the provisions of the Mutual Assis - tance in Tax Matters Order (SI No 34 of 2013), enables exchange of information relating to direct taxes and taxes on net wealth. 7.2 Exchange of Information Clauses in Tax Agreements As outlined in 7.1 Legal Framework for Administra- tive Co-Operation , there are a number of mechanisms in place enabling Revenue to exchange information. Depending on the relevant mechanism, the exchange of information that Ireland engages in can be on request, spontaneous or automatic.
and where the court makes a determination that the taxpayer is liable to a penalty and makes an order for the recovery of that penalty, Revenue will seek to recover the penalty as if it were tax. 6.2 Criminal Penalties An investigation by Revenue may result in criminal implications for a taxpayer. The Director of Public Prosecutions (DPP), not Revenue, is the State body that ultimately makes the decision as to whether or not a person should be prosecuted. Those convicted of tax offences may be liable to a fine or imprison - ment, or both. Where a person is convicted of a revenue offence, on summary conviction the individual can be liable to a fine of up to EUR5,000 and/or a period of imprison - ment of up to 12 months. Where a person is convicted of a revenue offence on indictment, the individual can be liable to a fine of up to EUR126,790 and/or a term of imprisonment of up to five years. 6.3 Interaction Between Tax and Criminal Procedures Revenue’s Code provides that where, in the course of a Level 2 or Level 3 intervention, Revenue uncovers information, not previously disclosed by the taxpayer, suggesting serious tax or duty evasion or that a rev - enue offence may have occurred, Revenue will inform the person by letter that a civil or criminal prosecution will be considered. As noted in 6.2 Criminal Penalties , the final decision in relation to whether any criminal prosecution will be brought rests with the DPP. 7. Administrative Co-Operation 7.1 Legal Framework for Administrative Co- Operation Key Legal Instruments There are several legal instruments that form the basis of administrative co-operation in tax matters in Ire - land. Information may be exchanged under the fol - lowing instruments.
201 CHAMBERS.COM
Powered by FlippingBook