The recent Irish Supreme Court case Walsh v National Irish Bank Limited (2013 IESC 2) considered disclosure obligations under Irish tax legislation, namely section 908 of the Taxes Consolidation Act (“TCA”) 1997, and the potential conflicts in another jurisdiction. Section 908 TCA 1997 enables Revenue to apply to the High Court to require a financial institution to furnish certain information regarding the liability of a taxpayer.

Revenue's application for an order under Section 908 TCA 1997 in respect of customers of the Isle of Man branch of the then National Irish Bank was refused by the High Court (2007 IEHC 325) in May 2007 on the basis that information was sought from a foreign bank and the powers afforded to Revenue under section 908 were restricted to this jurisdiction only.

Revenue appealed to the Supreme Court and the decision of that court was that it was appropriate for the Irish courts to grant the order sought by Revenue in respect of the Isle of Man branch, however, a process should be in place which gives the Bank the opportunity to seek a ruling from the Isle of Man courts as to whether compliance with the order would be in breach of the laws of the Isle of Man. The Bank has recourse to bring the matter back to the Irish Supreme Court for re-consideration in the event that such breach was found to exist.

A more detailed summary of the decision in this case featured in the February issue of tax.point.