A Committee Stage amendment proposes the introduction of new anti-avoidance legislation into Part 33 of the Taxes Consolidation Act (TCA) 1997. However the entire provision will only work on the making of Regulations by Revenue, and we understand there is to be a consultation process before such Regulations are finalised.

The new Chapter 3 will provide that any person in the tax business will be required in certain circumstances to provide information as specified by the Revenue Commissioners, relating to any transaction which gives rise to a tax advantage.

Ireland does not lack for anti-avoidance provisions. We have a significant number of special purpose measures, already added to in this year's Finance Bill, along with the general anti avoidance measures contained in section 811 and section 811A TCA 1997. A downside of these new measures is their introduction at Committee Stage. Committee Stage amendments, rightly or wrongly, tend to have a whiff of cordite about them; a sense of fiscal sleight of hand.

Under the new rules, within a “specified period” after a “relevant date”, “specified information” must be given about “discloseable transactions”. But none of the phrases in (our) inverted commas are precisely defined – they are contingent on Regulations being made by Revenue. The notion though behind a disclosable transaction in section 817D of Chapter 3 seems to be quite extensive. It refers to any transaction which the main benefit is to obtain or secure a tax advantage. A tax advantage is defined in the legislation – it's a relief or increased relief, a reduction, avoidance or deferral of any assessment, charge or liability to tax including future assessment, charge or liability. The definition of a tax advantage also covers any increase in a tax refund or overpayment, or the avoidance of any obligations to deduct or account for tax.

It will all be up in the air until the Revenue Regulations are published. Chartered Accountants Ireland understands that these Regulations will initially be published in draft form, with an opportunity for submissions to be made before they are finalised. Such draft Regulations will not be published until after the passing of the Finance Act, and may be accompanied by explanatory or guidance notes. Though the new legislation will be effective from the passing of the Finance Act, nothing can happen until the Regulations are finalised and laid before Dáil Éireann. Chartered Accountants can be assured that the Institute will engage to the full in the course of any consultation process.

The new proposals contain significant penalties for failure to comply. The penalty may be €4,000 plus a further €100 penalty for each day the failure continues or €500 for each day during a specific period plus a further €500 for each day the failure continues.

Section 817N suggests that the provision of information to the Revenue Commissioners under this new legislation will not be regarded as being equivalent to the delivery of a protective notice under section 811A TCA 1997.

Section 817P provides that the Revenue Commissioners may apply to the Appeal Commissioners for a determination on a number of matters.

The proposed new anti avoidance legislation is provided for by sections 817D to 817R of Chapter 3 TCA 1997.

The new legislation can be accessed at http://www.oireachtas.ie/documents/amendments/b0910d-dsc3.pdf