Revenue Note for Guidance

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Revenue Note for Guidance

908 Application to High Court seeking order requiring information: financial institutions

Summary

This section enables an officer authorised by the Revenue Commissioners to apply to the High Court to require a financial institution to furnish certain information regarding the liability of a taxpayer (including a person, or a group or class of persons whose identity or identities is or are not known to the authorised officer). The application can also seek information regarding a person connected to the taxpayer. The section mirrors section 907 with the addition that the High Court can freeze any account if it deems it necessary. Furthermore, the authorised officer can be afforded a measure of anonymity in proceedings should the Court consider that it is in the public interest to do so. The authorised officer must have reasonable grounds for suspecting that the taxpayer in question has been involved in serious tax evasion and that the financial institution has information relevant to the proper assessment of the taxpayer. When making such an application, an authorised officer may request that the judge direct that save for the purposes of complying with the order, the existence of or any details of the order shall not be disclosed (whether directly or indirectly) to any person. An authorised officer may only make such a request to the judge where they have reasonable grounds to suspect that the disclosure of such an order is likely to lead to serious prejudice to the proper assessment or collection of tax. While an authorised officer may make such a request to the judge it is entirely at the discretion of the judge as to whether the request is granted. The written consent of a Revenue Commissioner is necessary before making an application. The authorised officer can require the financial institution to give assistance in retrieving electronically stored documents.

Details

Definitions

(1) & (6)Judge” is a judge of the High Court. “A taxpayer” is defined as any person including a person, or a group or class of persons, whose identity is, or whose individual identities are, not known to the authorised officer and also a person who has made a non-resident DIRT declaration. “A taxpayer” can also include a company which has been dissolved and an individual who has died.

Application to the High Court

(2) An authorised officer may apply to the High Court seeking an order directing a financial institution to furnish or make available for inspection information relevant to a taxpayer’s liability.

(2A) When making such an application, an authorised officer may request that the judge direct that, save for the purposes of complying with the order, the existence of or any details of the order shall not be disclosed (whether directly or indirectly) to any person. While an authorised officer may make such a request to the judge it is entirely at the discretion of the judge as to whether the request is granted. The officer may only make such a request to the judge where they have reasonable grounds to suspect that the disclosure of such an order is likely to lead to serious prejudice to the proper assessment or collection of tax.(3)(ba)

(3) Before making an application to the courts in the first place, the authorised officer must obtain the written consent of a Revenue Commissioner and be satisfied that there are reasonable grounds for suspecting that the taxpayer may fail or may have failed to comply with the Acts, and that such failure is likely to lead or to have led to serious prejudice to the proper assessment or collection of tax. The officer must also be satisfied that the financial institution concerned is likely to have information relevant to the proper assessment or collection of tax in relation to the taxpayer.

(4) The information sought from the financial institution can relate to a person who is connected with the taxpayer.

(5) & (8) Where the judge is satisfied that there are reasonable grounds for the application, he or she may issue an order, subject to such conditions as he or she specifies in the order, requiring the financial institution to furnish any information as may be detailed in the order. The judge may also require that assets of the taxpayer in the custody of the financial institution be frozen for a specified time if the authorised officer makes an application in that regard.

Result of a successful application

(6A) & (6B) The financial institution, in complying with an order, is required to give the authorised officer reasonable assistance in accessing information which may be stored electronically or by other automatic means. The authorised officer is entitled to make copies of or extracts from the documentation made available for inspection by the financial institution.

Court proceedings

(7) & (9) An application, and any appeals relating to that application, is heard in camera. In addition, the judge, if he or she considers that it is in the public interest to so do, can afford the authorised officer anonymity, by requiring that the name and address of the authorised officer should not appear on copies of certain documents relating to the proceedings. The judge can also order that, should the authorised officer be cross-examined, his/her name and address is not to be disclosed in court and their visual identity is to be hidden from all present except the judge.

Relevant Date: Finance Act 2021