In a submission to the financial regulator, the Irish Taxation Institute (ITI) stated that the IFSRA should not have a role in deciding if directors of financial services firms are tax compliant. The proposal follows a number of banking scandals, and the IFSRA is consulting on how to test "the probity and competence" of directors and managers of financial firms and institutions".

However, ITI president Philip Brennan wrote that the institute "could not support in any circumstances" confidential information being shared between IFSRA and the Revenue.

"The Financial Regulator should rely on the detailed process and significant powers available to Revenue to identify serious and persistent tax evaders," he stated.

Mr Brennan warned that the sharing of taxpayer data could undermine the voluntary disclosure system, as taxpayers would fear that information given to the taxman in confidence would be viewed by other agencies, and he called for any such proposal to be immediately withdrawn.

"The voluntary disclosure mechanism has proved to be a very effective way of encouraging taxpayers who have made an error or omission to come forward voluntarily with the information and pay any tax, interest and penalties agreed with Revenue," wrote Mr Brennan.

The ITI is also critical of an IFSRA proposal to ask if taxpayers had been subject to penalties for tax evasion because a settlement figure may be referred to as a penalty payment by the Revenue, although a taxpayer may not have conceded any wrongdoing.