Revenue Powers Exercised in Places Other than at a Revenue Office

1. Introduction

1.1 In this Statement the word “tax” is used to cover any tax, duty, levy or charge under the care and management of the Revenue Commissioners and “taxpayer” and “taxation” should be read accordingly.

“Taxpayer” also includes all members of the public dealt with by Revenue officials in the discharge of Revenue responsibilities including those not involving a tax charge.

The word “authorised” is used to describe the process whereby an officer is authorised to exercise the functions (including powers and duties) specified in statutory provisions under Tax Law or under the Customs or Excise Acts, and “authorisation” and “authorised officer” should be read accordingly.

1.2 The Statement sets out the Revenue Commissioners’ policy on the exercise of statutory powers by Revenue officers in dealings with taxpayers for Revenue purposes in places other than at a Revenue office. These functions are carried out by Revenue officers in taxpayers’ premises, at ports and airports and by use of mobile task units, throughout all parts of the State. The Statement also covers certain powers of search, which may be exercised at a Customs Office. The Statement is designed to ensure that these Revenue powers are used in a proper manner and that taxpayers are aware of their rights as well as their obligations.

1.3 The Statement, which was originally issue in May 1994, has been brought up to date to reflect changes within the Revenue organization. The Statement does not signify any significant change in current practice. It summarises existing best practice and reaffirms Revenue policy regarding the use of powers. [Another Statement of Practice on Revenue Powers SP- GEN /1/99, dealing for the most part with information powers, is available on the Revenue website–www.revenue.ie]

1.4 Revenue officers who are required to exercise Revenue powers are specially authorised by the Revenue Commissioners for that purpose. All Revenue officers who are authorised to exercise powers are issued with an Identity Card, which shows the powers for which they are authorized.

The officer may also have a separate written document, which contains authorisation under other legislation.

Revenue officers are required to carry their Identity Card with them, when exercising powers on outdoor duty, and to produce it on request.

1.5 The checking powers of Revenue officers can be broadly divided into two categories:

• normal verification powers usually exercised with the consent of the taxpayer such as entry to premises to examine, copy or remove records (including records stored on computer) and to examine and sample goods;
• more exceptional powers, to be used in certain limited or non-routine circumstances, such as search for records and goods, detention and seizure of goods, entry to private residences in accordance with a Court Order or search warrant and arrest of persons in certain limited circumstances in accordance with the law.

2. The Necessity for Powers

2.1 Most transactions with Revenue are now handled on a Self Assessment basis. In other words, returns and other information filed by taxpayers are accepted as the basis for processing tax liability or discharging other Revenue responsibilities. To be effective, all Self Assessment systems have to be backed up by a system of verification of the returns and other information supplied. The relevant legislation therefore contains a range of powers, which enable Revenue to carry out all its functions, both in relation to complying and non-complying taxpayers. In most instances, the verification objectives are best achieved by a visit to the taxpayer. In some instances, a visit is the only way of making progress.

2.2 The majority of taxpayers co-operate fully with Revenue requirements. This allows Revenue to function in a speedy and efficient manner with the minimum of disruption to taxpayers. This co-operation also means that in everyday situations only very basic powers are used, for example, those allowing examination and sampling of goods and entry to premises to examine and, if necessary, take copies of records.

2.3 On the other hand, it must be recognised that a small minority seek to evade their obligations and do not wish to co-operate with Revenue requirements, including those arising in connection with audit and other visits. If this position were not adequately addressed, the result would be that these persons would not pay their fair share of taxation, compliant taxpayers would have to pay more and business persons could be put at a competitive disadvantage.

3. The Customer Service Charter

3.1 The use of Revenue powers is of course subject to specific legal provisions and constraints as contained in the relevant legislation, which must be respected by Revenue officials. In addition, officers are at all times required to operate within the terms of the Customer Service Charter, which reflects wider provisions relating to taxpayers’ rights and obligations. Officers must also proceed in accordance with the orders, instructions and directions of the Revenue Commissioners. Visits are required to be carried out at reasonable times, in an impartial manner, with due respect for taxpayers’ privacy and consideration for possible inconvenience involved in a Revenue visit.

4. Authorised Officers

4.1 Revenue powers can be exercised only by officers who have been specially authorised for that purpose by the Revenue Commissioners. The Revenue Commissioners ensure that only suitable officers are authorised, that they receive appropriate training and instruction and that, through their Identity Card or other authorisation in writing, their authority is verifiable. An officer will be authorised by the Revenue Commissioners only following a recommendation of suitability from a senior officer nominated by the Revenue Commissioners for that purpose.

4.2 An officer's Authorisation is set out on his or her Identity Card. The Identity Card has on it, the officer's name and photograph and the Revenue hologram. It has a description of the legislation for which the officer is authorised and bears a facsimile of the signature of the Revenue Commissioner by whom the officer was authorised. The officer may also have a separate written document, which contains authorisation under other legislation.

4.3 The Identity Card and its contents are provided for in Section 858 of the Taxes Consolidation Act 1997. That section provides that the production by an officer of his or her Identity Card to a person will be taken as evidence of authorisation and will satisfy the officer's obligation to produce his or her authorisation to that person when required to do so.

5. Visits to and Meetings with Taxpayers

5.1 Normal visits to a taxpayer's premises fall into the following three categories:

• Those involving simple routine matters;
• Those involving records and stock checks or examination of consignments; and
• More substantial visits involving detailed examination of a taxpayer's records or goods.

Simple routine matters: Many visits to a taxpayer's premises involve only simple routine matters, for example, officers requiring a particular explanation or sight of a particular document. These visits are brief, often less than an hour's duration. Visits falling into this category may be made without a prior appointment. If such a visit inconveniences a taxpayer, or the matters arising cannot be readily dealt with, officers will arrange the visit for a more suitable time.

Records and stock checks and examination of consignments: Revenue officers involved in Customs and Excise duties make visits to taxpayers’ premises without prior appointment to carry out records and stock checks and perform examinations. Such checks will be carried out with the least possible inconvenience to the taxpayer.

More substantial visits: A visit, other than one involving simple routine matters or stock checks, or examination of consignments, is normally pre-arranged and officers attempt to arrange the visit at a time convenient for the taxpayer and his or her adviser. Taxpayers are advised in advance of the proposed time and purpose of the visit and what records it is intended to examine.

5.2 On meeting with taxpayers, officers in the exercise of powers are required to identify themselves, show their Identity Card and state the purpose of the meeting.

Officers should also provide business cards showing the address and telephone number of their office.

These procedures do not apply to Customs and Excise checks carried out in clearly defined areas of operation where officers are easily identifiable as such (for example at sea and air terminals). However officers should always have their Identity Card with them and be prepared to produce it on request.

5.3 Every effort is made to limit the impact of a visit on a taxpayer's normal routine by organising the visit in a way that suits the taxpayer.

5.4 During routine or pre-arranged visits, entry to that portion of premises used wholly and exclusively as a private residence will occur only with the consent of the occupier. (Entry to such premises without consent would arise only in circumstances referred to in paragraph 7.4.)

5.5 Compliance with any reasonable requests from an officer should enable most visits or meetings to be carried out speedily and efficiently and should obviate the necessity for repeat visits or a prolonged audit or enquiry.

5.6 Exceptionally, if there is reason to believe that advance notice of a visit would not be appropriate, the normal procedure for advance notice of visits would not apply.

6. Financial Records of Professional Persons

6.1 Officers may, within their powers, examine the financial records of professional persons. Officers will not encroach on areas of advice given by professionals to clients. They will not enquire into information disclosed by clients to their advisers, including information, which might be relevant to court proceedings, actions or settlements.

7. Evasion

7.1 Revenue legislation contains provisions giving specific non-routine powers designed to counter evasion and obstruction. These include powers of seizure, search, entry to premises (including a private residence in certain circumstances – see paragraph 7.4 below) to conduct enquiries or investigations, and powers of arrest in certain limited circumstances.

The Revenue Commissioners are intent on ensuring that these powers continue to be directed in a controlled and specific manner. The possible use of these powers arises for consideration only in specific circumstances and does not arise in the course of a routine or pre-arranged visit where the taxpayer cooperates with the officer. Ordinarily, at least two officers must be present and the actions proposed will have been discussed with, and approved beforehand by, a senior officer nominated for this purpose by the Revenue Commissioners.

7.2 In relation to VAT, a detention of goods arises for consideration only if goods supplied for export at the zero rate of VAT are retained for sale on the home market, if goods are obtained at zero-rate in another Member State by fraudulent use of a VAT number or if goods are supplied by a taxable person who does not register for VAT.

Other goods, which may be detained or seized by Revenue officers, include the following;

• Goods imported or exported without clearing Customs formalities or without payment of import charges;
• Goods the importation or exportation of which is prohibited or restricted;
• Motor vehicles on which Vehicle Registration Tax or VAT has been evaded;
• Goods on which excise duty has been evaded;
• Marked gas oil (diesel) or kerosene from which the proper marker has been removed;
• Vehicles or conveyances used in the transport of goods liable to forfeiture, as above;
• Materials and equipment used for the removal of the marker from gas oil or kerosene; and
• Amusement and gaming machines not properly licensed.

Whenever an officer detains goods, the taxpayer must be given an itemised list of the items detained and, in due course, if the goods are being formally seized, a notice to that effect must be given. Where vehicles or conveyances are detained, officers will, as far as practicable, seek to minimise inconvenience to the driver and passengers.

7.3 The question of search of an individual, other than for Customs and Excise purposes, arises in very limited circumstances and only if an officer has reason to believe that an individual has evidence, which may be required in criminal proceedings, relating to VAT about his or her person and does not produce it on request. In relation to Customs and Excise, search of an individual will arise only if the officer has reason to believe that the individual has goods, which have not been declared to Customs about his or her person and has failed to produce them on request.

These searches involve the examination of an individuals’ outer garments and, except for suspected drug smuggling cases, would not involve removal of other clothing or intimate body searches. In the case of persons suspected of carrying drugs in internal body concealments, officers engaged in Customs duties use the latest best practice in this sensitive area in consultation with their superior officers. (In no circumstances are internal body searches undertaken by Revenue officers). An individual will be searched only by an officer of the same sex.

7.4 Entry by an officer to a premises, or a portion of a premises, which is occupied wholly and exclusively as a private residence, without the consent of the occupier, will arise for consideration only in limited circumstances and requires approval at senior management level in all cases, as well as a Court Order or search warrant as prescribed by law.

A search of any premises will arise for consideration only if prohibited or smuggled goods, or documents relating to smuggling or evasion, are believed to be present, or in other limited circumstances. For example, a search of premises would happen if an individual does not produce records or goods required for examination when requested to do so and an officer has reason to believe that the records or goods required for examination are in the premises and would constitute evidence of serious evasion.

Entry to a premises under a search warrant, where that is required, is more likely to occur in cases dealt with by Investigations and Prosecutions Division in the course of investigation with a view to prosecution.

7.5 The question of arrest by a Revenue officer for VAT purposes arises only where there are grounds for suspecting that a criminal offence in relation to VAT has been committed by an individual who is not established in the State or who is thought likely to leave the State. The only other instance in which the question of arrest by a Revenue official arises is in relation to Customs or Excise offences. The question will arise in certain cases where an officer reasonably suspects a serious offence has been committed under Customs or Excise legislation. Apart from drugs smuggling cases, an arrest will in practice only be made as a last resort, generally where the person is not resident in the State or is likely to leave the State or where an officer has been seriously obstructed or assaulted in the prevention of smuggling.

8. Stopping Motor Vehicles and Other Conveyances

8.1 Revenue officers engaged in Customs or Excise duties may request a driver to bring a motor vehicle (and this includes a container or trailer) to a halt, where it is reasonably believed that smuggled goods or excisable products are being carried. They may also request a vehicle to stop in order to check payment of Vehicle Registration Tax. Normally, a vehicle will be stopped by uniformed officers and clearly visible signs will be placed at appropriate intervals at the roadside. Inspection of the vehicle and goods will be carried out as quickly as possible. Officers may also request that boats, vessels, and other conveyances be brought to a halt for examination.

Revenue officers may engage in joint operations of this nature with members of An Garda Siochána.

9. Removal of Records

9.1 Whenever an officer removes records from a premises, the taxpayer will be given a list of the items taken (the list to be endorsed by the officer and by the taxpayer, where feasible). The officer is required to indicate when the records are likely to be returned.

9.2 Where appropriate, for example when records have been removed and the taxpayer requires them for current trading purposes, copies of the records removed will be given to the taxpayer or, if required, the taxpayer will be given controlled access to the records removed.

9.3 Records removed will be returned to the taxpayer as soon as possible. If the records are required by Revenue for the purposes of legal proceedings, they will be returned after the proceedings are completed.

10. Requiring Assistance from Taxpayers and Other Persons

10.1 During the course of visits, officers normally direct requests for reasonable assistance including information, explanations and documents to the taxpayer or the person delegated by the taxpayer to deal with the officer and these requests are made in an informal manner on a co operative basis. Therefore, while officers have a statutory right to require reasonable assistance from taxpayers or other persons, they will consider the formal position only in circumstances when persons under enquiry refuse to comply with normal requests from officers.

If officers need to rely on their statutory power, they will clearly inform the persons concerned of this power.

10.2 Persons required to provide reasonable assistance will normally fall into the following categories:

1. the Company Secretary, directors, senior executives or other person appointed to provide assistance, where the taxpayer is a company;
2. the taxpayer, where the taxpayer is not a company;
3. employees of the taxpayer, other than those mentioned specifically at (i).
   (When requiring assistance from employees in category (iii), officers may require assistance only in relation to employees’ own emoluments, their own tax affairs or their functions in the operation of the business of their employer. Officers will not require assistance from such employees about the personal tax affairs of their employer or other persons.)
   In relation to persons other than those mentioned above, this power will only arise exceptionally and will be used only with the approval of senior officers nominated by the Revenue Commissioners for this purpose.

10.3 Other than for Customs and Excise purposes where a customer may possess evidence regarding illegal activity, officers on visits cannot require assistance from members of the public who are on the particular premises to purchase goods or receive a service.

11. Garda Assistance

11.1 Under Section 906 Taxes Consolidation Act 1997, and certain Customs and Excise legislative provisions, officers may be accompanied by members of An Garda SiochÁna. This will normally arise only where circumstances suggest that a Garda presence may be necessary, for example, if it is considered that an officer may be obstructed or in certain cases where smuggling of drugs or dangerous substances may be involved.

12. Monitoring of Powers

12.1 The Revenue Commissioners are committed to careful monitoring of the use of powers and the periodic review of how they are operating. Apart from routine or pre-arranged visits to examine records and goods, check stocks, perform examinations, make enquiries or to collect returns or outstanding tax, and except for smuggling cases requiring immediate action, officers must have discussed with and obtained prior approval for proposed courses of action from more senior officers. The level of management from which approval must be obtained will vary according to the power being used.

13. Dissatisfaction/Complaint

13.1 Any person is entitled to a review of matters arising from his or her dealings with Revenue officers. If a person considers that an officer has abused his or her position in the use of Revenue powers, that person can choose to have a review carried out at local level, i.e. either by the appropriate Revenue District Manager or by the Regional Assistant Secretary. A request for such a review should be made in writing directly to the relevant person. Where a taxpayer does not wish the review to be undertaken locally, he or she can request that the review be undertaken by, either:

• the Revenue Principal Officer appointed to carry out reviews, or
• an External Reviewer and that Principal Officer jointly.

A request for such a review should be made by writing to the Internal Review Unit, Revenue Commissioners, 2nd Floor, Stamping Building, Dublin Castle. Further information in relation to the review procedures are contained in Statement of Practice SP-GEN/2/99 (Revised January 2005).
Revenue Commissioners
Dublin Castle
February 2006