We have responded through CCAB-I to the Revenue consultation on the requirement to disclose various forms of tax avoidance schemes. In particular, our submission points out how the requirement might affect inward investment decisions, and the disproportionate recognition offered by Revenue to legal firms over accountancy practices.

Our submission states that:

1. There is a lack of clarity around what must be disclosed. This puts pressure on tax practitioners to disclose more rather than less, due to reputational considerations and the potential penalties.
2. The lack of clarity is likely to mean that many more matters will be reported to Revenue than may be required. This over-reporting would be counter-productive as it would take Revenue much longer to focus on the matters which are of real interest to them.
3. The lack of clarity and the lack of a feedback mechanism increase the complexity of doing business in Ireland and to the detriment of international business looking to locate in Ireland. The importance of FDI to Ireland cannot be overestimated and neither can the importance of continuing to grow sustainable domestic businesses both within Ireland and internationally in order to drive job creation.
4. The inequity of legal professional privilege, as currently provided for in the Mandatory Disclosure legislation and regulations, needs to be amended to provide a level playing field. The same reporting obligations should apply to everyone irrespective of legal or professional privilege.

An extract of the submission is available here.