907A Application to Appeal Commissioners: information from third party

Summary

This section enables an authorised officer of the Revenue Commissioners to apply to the Appeal Commissioners for consent to serve a notice on a third party seeking information relevant to a taxpayer’s liability. The taxpayer concerned can include a person, or a group or class of persons, whose identity or identities is or are, not known to the author-ised officer. The authorised officer must have reasonable grounds for suspecting that the taxpayer in question is failing or has failed to comply with any provision of the Tax Acts and that the third party holds information relevant to the proper assessment of the taxpayer. The written consent of a Revenue Commissioner is necessary before making an application. If the application is successful, the third party has 30 days to comply with the notice before facing a penalty.

Details

Definition

(1) & (6) For the purposes of the section “taxpayer” means any person, including a person whose identity is not known to the authorised officer, or a group or class of such persons. The persons who may be treated as a taxpayer for the purposes of this section can also include a company which has been dissolved and an individual who has died.

Application to the Appeal Commissioners

(2), (5), (7) & (9) An authorised officer may make an application to the Appeal Commissioners seeking consent to serve a notice on a third party for the purpose of obtaining information relevant to the liability of a taxpayer. However, certain confidential information such as legal or medical advice is not required to be disclosed. Where the Appeal Commissioners are satisfied that there are reasonable grounds for the application, they may give their consent to the service of a notice. The application to the Appeal Commissioners is procedurally similar to the hearing of an appeal against a tax assessment. However the determination of the Appeal Commissioners is final and conclusive.

(3) Before making an application to the Appeal Commissioners the authorised officer must obtain the written consent of a Revenue Commissioner, and must have reasonable grounds to believe that the taxpayer concerned may have failed, or may fail, to comply with the Acts, and that such failure is likely to have led or to lead to serious prejudice to the proper assessment or collection of tax. The officer must also be satisfied that the information in the possession of the third party is likely to be relevant to the proper assessment or collection of tax in relation to the taxpayer.

(4) The application to the Appeal Commissioners can relate to information in respect of a person connected with the taxpayer whose tax affairs are under enquiry.

Result of a successful application

(8) & (10) Where the Appeal Commissioners give their consent to the service of a notice and its contents, the notice must be served within 14 days. The third party is required to comply with the notice within 30 days of its service. Failure to comply with the notice can render the third party liable to a penalty, with further daily penalties applicable should the failure to comply continue after the 30 day period.

Relevant Date: Finance Act 2021