European Tax Authorities Gain New Powers

by Jason Gorringe, for LawAndTax-News.com, London

09 August 2005

Following the entry into force in Ireland recently of European legislation designed to broaden the exchange of information between revenue authorities in EU territories, the Institute of Chartered Accountants of Ireland (ICAI) has suggested that the move is likely to have "far-reaching" implications.

According to an ICAI statement on the matter:

"The new rules oblige the Revenue authorities of a Member State, on request, to pass on various types of correspondence from another Revenue authority to taxpayers within their jurisdiction. Member States will also be allowed to raise queries – 'the conduct of simultaneous controls' in the parlance of the statutory instrument - with a view to exchange of information in certain circumstances. Matters in relation to excise duties are apparently excluded from the new rules."

Speaking to the Irish media at the weekend, the Institute's tax chief, Brian Keegan suggested that the newly implemented rule will "make it much easier for tax authorities in other countries to pursue taxpayers across Europe".

He went on to add that:

"The Irish authorities can now help other member states with tax audits (of foreigners resident in Ireland). Similarly, Irish Revenue could ask tax authorities across the EU to help it perform a tax audit of an Irish person living outside Ireland."

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