Taxes Consolidation Act, 1997 (Number 39 of 1997)
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907Application to Appeal Commissioners seeking determination that authorised officer justified in requiring information to be furnished by financial institutions.
[WCTIPA93 s13]
(1) In this section—
“authorised officer” means an inspector or other officer of the Revenue Commissioners authorised by them in writing to exercise the powers conferred by this section;
“books” means—
(a) bankers” books within the meaning of the Bankers” Books Evidence Acts, 1879 and 1959, and
(b) records and documents of persons referred to in section 7(4) of the Central Bank Act, 1971;
“financial institution” means—
(a) a person who holds or has held a licence under section 9 of the Central Bank Act, 1971, and
(b) a person referred to in section 7(4) of that Act;
“person” (other than in the definition of “financial institution”) means an individual who is ordinarily resident in the State.
(2) Notwithstanding any other provision of the Tax Acts, where—
(a) a person who for the purposes of tax has been duly required by an inspector to deliver a statement of the profits or gains arising to that person from any trade or profession or to deliver to the inspector a return of income fails to deliver that statement or that return to the inspector, or
(b) the inspector is not satisfied with such a statement or return so delivered,
an authorised officer may—
(i) if the authorised officer has reasonable grounds to believe that that person maintains or maintained an account or accounts (being an account or accounts from which the person may withdraw moneys), the existence of which has not been disclosed to the Revenue Commissioners, with a financial institution or that there is likely to be information in the books of that institution indicating that that statement of profits or gains or that return of income is false to a material extent, and
(ii) on application by the authorised officer to the Appeal Commissioners, they determine that in all the circumstances the authorised officer is justified in requiring the financial institution to furnish him or her—
(I) with particulars of all accounts maintained by that person, either solely or jointly with any other person or persons, in that institution during a period not exceeding 10 years immediately preceding the date of the application, and
(II) with such information as may be specified by the authorised officer with the consent of the Appeal Commissioners relating to the financial transactions of that person, being information recorded in the books of that institution which would be material in determining the correctness of the statement of profits or gains or the return of income delivered by that person or, in the event of failure to deliver such statement or return, would be material in determining the liability of that person to tax,
require that financial institution to furnish such particulars or information.
(3) An application by an authorised officer under subsection (2) shall with any necessary modifications be heard by the Appeal Commissioners as if it were an appeal against an assessment to income tax, and a copy of the application shall, as soon as is practicable, be furnished by the authorised officer to the financial institution concerned and the person concerned, and that financial institution and that person shall be entitled—
(a) to be present during all the time of the hearing of the application,
(b) to produce lawful evidence, and
(c) to be represented by—
(i) a barrister,
(ii) a solicitor,
(iii) an accountant (being any person who has been admitted and is a member of an incorporated society of accountants),
(iv) a person who has been admitted and is a member of the body incorporated under the Companies Act, 1963, on the 31st day of December, 1975, as “The Institute of Taxation in Ireland”, or
(v) such other person as the Appeal Commissioners permit,
to plead on their behalf before the Appeal Commissioners.
(4) Section 941 shall apply with any necessary modifications to a determination by the Appeal Commissioners under subsection (2) as it applies to the determination by those Commissioners of an appeal against an assessment to income tax.
(5) Where the Appeal Commissioners have made a determination in accordance with subsection (2), the authorised officer shall, as soon as practicable but not later than 14 days from the time at which such determination was made, give a notice in writing to the financial institution concerned and the person concerned stating that—
(a) such a determination has been made, and
(b) the financial institution should, within a period of 30 days from the time at which the financial institution received such notice, furnish the particulars or information as may be specified in the notice.
(6) A financial institution which fails to comply with a request issued to it by an authorised officer in accordance with subsection (2) shall be liable to a penalty of £15,000 and, if the failure continues after the expiry of the period specified in subsection (5)(b), a further penalty of £2,000 for each day on which the failure so continues.
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907 Application to Appeal Commissioners: information from financial institutions.
(1) In this section “a taxpayer” means any person including—
(a) a person whose identity is not known to the authorised officer, and a group or class of persons whose individual identities are not so known, and
(b) a person by or in respect of whom a declaration has been made under section 263(1) declaring that the person is beneficially entitled to all or part of the interest in relation to a deposit.
(2) An authorised officer may, subject to this section, make an application to the Appeal Commissioners for their consent, under subsection (5), to the service by him or her of a notice on a financial institution requiring the financial institution to do either or both of the following, namely—
(a) to make available for inspection by the authorised officer, such books, records or other documents as are in the financial institution’s power, possession or procurement as contain, or may (in the authorised officer’s opinion formed on reasonable grounds) contain, information relevant to a liability in relation to a taxpayer,
(b) to furnish to the authorised officer such information, explanations and particulars as the authorised officer may reasonably require, being information, explanations and particulars that are relevant to any such liability,
and which are specified in the application.
(3) An authorised officer shall not make an application under subsection (2) without the consent in writing of a Revenue Commissioner, and without being satisfied—
(a) that there are reasonable grounds for suspecting that the taxpayer, or where the taxpayer is a group or class of persons, all or any one of those persons, may have failed or may fail to comply with any provision of the Acts,
(b) that any such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax (having regard to the amount of a liability in relation to the taxpayer, or where the taxpayer is a group or class of persons, the amount of a liability in relation to all or any one of those persons, that arises or might arise from such failure), and
(c) that the information—
(i) which is likely to be contained in the books, records or other documents to which the application relates, or
(ii) which is likely to arise from the information, explanations and particulars to which the application relates,
is relevant to the proper assessment or collection of tax.
(4) Without prejudice to the generality of subsection (2), the authorised officer may make an application under that subsection to the Appeal Commissioners for their consent, under subsection (5), to the service by him or her of a notice on a financial institution in respect of the matters referred to in paragraphs (a) and (b) of subsection (2) in so far as they relate to a person who is connected with the taxpayer.
(5) Where the Appeal Commissioners determine that in all the circumstances there are reasonable grounds for the application being made, they may give their consent to the service by the authorised officer concerned of a notice on the financial institution, requiring the financial institution—
(a) to make available for inspection by the authorised officer, such books, records or other documents, and
(b) to furnish to the authorised officer such information, explanations and particulars,
of the kind referred to in subsection (2) as may, with the Appeal Commissioners” consent, be specified in the notice.
(6) The persons who may be treated as a taxpayer for the purposes of this section include a company which has been dissolved and an individual who has died.
(7) Where the Appeal Commissioners have given their consent in accordance with this section, the authorised officer shall, as soon as practicable, but not later than 14 days from the time that such consent was given, serve a notice on the financial institution concerned and stating that—
(a) such consent has been given, and
(b) the financial institution should, within a period of 30 days from the date of the service of the notice, comply with the requirements specified in the notice.
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(7A) Where in compliance with the requirements of a notice served under subsection (7), a financial institution makes available for inspection by an authorised officer, books, records or other documents, the financial institution shall afford the authorised officer reasonable assistance, including information, explanations and particulars, in relation to the use of all the electronic or other automatic means, if any, by which the books, records or other documents, in so far as they are in a non-legible form, are capable of being reproduced in a legible form, and any data equipment or any associated apparatus or material.
(7B) Where in compliance with the requirements of a notice served under subsection (7), a financial institution makes books, records or other documents available for inspection by the authorised officer, the authorised officer may make extracts from or copies of all or any part of the books, records or other documents.
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(8) (a) Subject to paragraph (b), an application by an authorised officer under subsection (2) shall, with any necessary modifications, be heard by the Appeal Commissioners as if it were an appeal against an assessment to income tax.
(b) Notwithstanding section 933(4), a determination by the Appeal Commissioners under this section shall be final and conclusive.
(9) A financial institution which fails to comply with a notice served on the financial institution by an authorised officer in accordance with this section shall be liable to a penalty of
[2]>£15,000<[2]
[2]>€19,045<[2]
and, if the failure continues after the expiry of the period specified in subsection (7)(b), a further penalty of
[3]>£2,000<[3]
[3]>€2,535<[3] for each day on which the failure so continues.
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