Qualifying Avoidance Disclosures

Payments in advance of Tax Avoidance Settlement Opportunity deadline reach over €33m – less than 1 week until 30 June deadline

The closure date of 30 June for making a qualifying avoidance disclosure is fast approaching and, to date, over €33m has either been paid or commitments to pay have been received in respect of over 90 cases.

Why make a "qualifying avoidance disclosure"?

Where a taxpayer makes a "qualifying avoidance disclosure" the following benefits apply:

• a 20% reduction in the interest that would otherwise be payable and
• a surcharge will not be applied to the tax settlement.

Also penalties will not apply if Revenue accepts that the disclosure under the scheme is a qualifying avoidance disclosure and the taxpayer’s name will not be published in the quarterly list of tax defaulters.

It should be noted that Revenue's policy is to actively challenge tax avoidance transactions and to litigate such cases in the courts where Revenue is of the view that a tax avoidance transaction is not effective.

How to make a "qualifying avoidance disclosure"

A qualifying avoidance disclosure must be made in writing to Revenue at the following address on or before 30 June 2015.

Qualifying Avoidance Disclosure Unit,

Large Cases Division,

Ballaugh House,

73-79 Mount Street,

Dublin

The disclosure must:

• provide complete information about, and full particulars of, the tax avoidance transaction;
• contain a declaration that, to the best of the taxpayer's knowledge, information and belief, the disclosure is correct and complete;
• be accompanied by payment of all the tax due;
• be accompanied by payment of 80% of any interest due; and
• be signed by or on behalf of the taxpayer.

For further information in relation to making a QAD see e-brief 16/2015 which sets out the type of transactions or contact the Qualifying Avoidance Disclosure Unit at qad@revenue.ie or (01) 6131507.

26 June 2015