Finance Act 2014 made provision for a “qualifying avoidance disclosure” to Revenue on or before 30 June 2015 which could limit exposure to interest and surcharge if any arrangement fell foul of the General Anti Avoidance Rule.

Legislation in Finance Act 2014 (section 87(1)(b)(i)) allows a taxpayer, who entered into a tax avoidance transaction on or before 23 October 2014, to settle with Revenue by paying the tax due and a reduced amount of interest. To avail of this opportunity, a taxpayer must make a “qualifying avoidance disclosure” on or before 30 June 2015.

The 10% or 20% surcharge provided for under section 811A TCA 1997 will not be applied. Also, if Revenue accepts that a disclosure is a qualifying avoidance disclosure that relates to a tax avoidance transaction, no penalty will be applied.

Revenue published details how the settlement opportunity will work, the type of tax avoidance schemes that are covered and guidance to taxpayers on how to settle in Revenue eBrief No. 16/15.

Commenting on the qualifying avoidance disclosure Revenue Chairman Niall Cody said: “Those who have engaged in tax avoidance who do not avail of the settlement opportunity by 30 June next will be challenged and their cases will be actively pursued through the appeal system.”

The qualifying avoidance disclosure form, Form QAD1 is available on the Revenue website together the continuation Form QAD2. The QAD1, and QAD2 if required, should be used to make a qualified avoidance disclosure, and submitted to the Revenue’s Qualifying Avoidance Disclosure Unit together with;

• payment of any tax due and payable in respect of any matter contained in the disclosure; and
• payment of interest due on the late payment of that tax subject to a 20 per cent deduction, i.e. 80 per cent of interest otherwise due must be paid.

Further details on the forms are set out in Revenue eBrief No. 16/15 which is published on here.