Irish Amnesty Scheme Deadline Nearing

by Robert Lee, Tax-News.com, London

24 August 2009

The Irish Revenue has issued a statement, encouraging those with undeclared tax liabilities from trusts and offshore structures to disclose them before its investigation commences on September 1, 2009.

According to the Irish Revenue’s statement, the investigation is targeting those persons who have not disclosed their trusts and offshore structures to the Revenue and who have undeclared tax liabilities resulting from their use. 'Persons who have undeclared tax liabilities in relation to the use of these trusts / structures – either on the underlying funds and assets, or the profits and gains arising within, or disbursements made out of the trusts / structures – have an opportunity to make a qualifying disclosure to Revenue,' a Revenue statement read.

Under the amnesty taxpayers have until September 1, 2009, to deliver a Notice of Intention to make a qualifying disclosure to the Irish Revenue. The deadline for making the follow-up Disclosure and Payment is October 31, 2009.

Taxpayers who are already under enquiry or who come within certain excluded categories are precluded from making a qualifying disclosure.

Where the rules are satisfied, the benefits of an unprompted qualifying disclosure will apply. The following treatment will apply to a qualifying disclosure:

• The disclosure will be regarded for the purposes of section 1086 of the Taxes Consolidation Act 1997, as a qualifying disclosure - this means that the identity of the person and details of the payment will not be published.
• Revenue will not take steps to initiate the prosecution of any offence that may have been committed by the taxpayer, in relation to the disclosure.
• Penalties will be mitigated in accordance with the Code of Practice for Revenue Auditors.

Persons who do not strictly satisfy the rules have also been encouraged by the Irish Revenue to make a disclosure. The Revenue states that although such people would not eligible for favourable treatment regarding penalties and non-publication, they could however avoid criminal prosecution.

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