Revenue Note for Guidance

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Revenue Note for Guidance

1086 Publication of names of tax defaulters

Summary

This section requires the Revenue Commissioners to compile and publish lists of certain tax defaulters. Such lists are to be compiled on a quarterly basis and published in Iris Oifigiúil within 3 months of the end of each particular quarter. Thereafter, lists of defaulters may also be publicised or reproduced by the Revenue Commissioners in any manner they consider appropriate. This section ceases to apply from 31st December 2021 and is replaced by section 1086A.

Details

Definitions

(1) The section defines “the Acts” as covering the statutes listed in paragraphs (a) to (i) of the definition, and includes any instruments made under those particular statutes (for example, the PAYE and VAT Regulations).

“tax” is any tax, duty, levy or charge under the care and management of the Revenue Commissioners.

Compilation of lists of defaulters

(2) For the 6-month (transitional) period ending on 30 June, 1997 and for each subsequent period of 3 months commencing with the 3 months ending on 30 September, 1997, the Revenue Commissioners are obliged to compile a list of names and addresses, and the occupations or descriptions, of every defaulter who falls within any of the following types of cases —

  • (2)(a) all cases where a fine or penalty is imposed by a court under any of “the Acts” during the particular period to which the list under compilation refers;
  • (2)(b) all cases where a fine or penalty in respect of a tax offence is imposed by a court otherwise than under “the Acts” during that period;
  • (2)(c) all cases where, instead of initiating proceedings for the recovery of any fine or penalty of the kind mentioned above, the Revenue Commissioners have accepted or undertaken to accept an offer in settlement of all “back-duty” liabilities involving tax, interest (except in the case of customs and excise settlements) and penalties in respect of the taxes covered by the section;
  • (2)(d) all cases where a settlement has been agreed between a taxpayer and the Revenue Commissioners in respect of a payment of tax, interest (except in customs and excise settlements) and penalties even after court proceedings have been initiated and whether or not a fine or penalty has been imposed by the court.

The reference to “a fine or other monetary penalty in respect of that tax” is to any form of penalty under the Acts irrespective of whether it is a “tax geared” penalty (that is, a penalty related to the tax undercharge) for fraud or neglect or a fixed penalty for failure to file returns, etc.

(2A) A payment of the full amount of the claim to the Revenue Commissioners is regarded as a settlement (and therefore publishable).

(2B) Where the Revenue Commissioners accepted or undertook to accept a specified sum in settlement under subsection (2)(c) or (2)(d) and a payment is not made, the settlement is to be included in the list to be published under subsection (2). This includes situations where the settlement sum comprises an amount relating to a qualifying disclosure made by the taxpayer and an amount relating to “relevant matters” i.e. other tax defaults not subject to a qualifying disclosure (see subsections (2C) and (2D) following). The portion of the settlement sum relating to the other tax defaults i.e. the adjusted specified sum, will be included in the list to be published under subsection (2) notwithstanding that a payment is not made in respect of that sum.

Publication where partial disclosure made

(2C)&(2D) Where Revenue—

  • enters into a settlement agreement with a taxpayer, or
  • accepts a sum from a taxpayer which is the full amount of their claim i.e. the full amount of the taxpayer’s liability for tax, interest and penalties, without entering into a settlement agreement

in circumstances where the settlement sum or the full amount of the claim, as the case may be, comprises of a liability to which a qualifying disclosure relates and a liability in respect of “relevant matters” (i.e. matters giving rise to a tax default not included in the qualifying disclosure), then notwithstanding that subsection (4)(a) would (in the absence of this subsection) exclude that person from inclusion in the defaulters list on foot of the making of a qualifying disclosure, the taxpayer will nonetheless be included in the list in respect of the relevant matters assuming the publication criteria (see paragraphs (c) and (d) of subsection (4)) are met in respect of those matters.

Making the lists public

(3) Any obligation to secrecy imposed on the Revenue Commissioners by “the Acts” or the Official Secrets Act, 1963, is to be ignored for the purposes of this section and the Revenue Commissioners are authorised to arrange for publication of these lists in Iris Oifigiúil within 3 months of the end of the period for which they are compiled. In addition, following publication in Iris Oifigiúil, the Commissioners may publicise and/or reproduce the lists (in whole or in part) in any other manner, form or format they consider to be appropriate (for example, reproducing the list on the Revenue website).

Exceptions

(4) The following cases are not required to be included in the lists (and therefore not made public) despite the fact that settlements have been made —

  • a case in which the defaulter had voluntarily made a complete and full disclosure to the satisfaction of the Revenue Commissioners before the commencement of any investigation or inquiry by them (but see subsections (2C) and (2D) foregoing),
  • a case where the total amount of tax, interest and penalties comprised in the settlement sum (or comprised in that part of the settlement sum relating to “relevant matters” i.e. matters giving rise to a tax default not included in a qualifying disclosure), does not exceed the relevant amount referred to in subsection (4A)(a) (currently €35,000) and
  • a case where the fine or penalty involved does not exceed 15 per cent of the tax included, as the case may be, in the specified sum or adjusted specified sum (see subsections (2C) and (2D) foregoing) that accepted in settlement.

Indexation of publication limit

(4A) The Minister for Finance may, from time to time, by order provide a new publication limit to take effect from 1 January of the year in which the order is made. Each new limit is to be arrived at by indexing the previous limit (current limit is €35,000) in accordance with the consumer price index and rounding up to the nearest €1,000. Each new limit is required to take effect in respect of settlements that include only liabilities which arise on or after the said 1 January and periods that commence on or after that date.

Exceptions to publication in cases of Court imposed penalties

(4B) Cases where a fine or penalty is imposed by a court under any of “the Acts” or otherwise during the particular period to which the publication list under compilation refers, are not to be included in the list (and therefore not made public) where:

  • in the case of a person who had made a return, the amount of the penalty determined by the court does not exceed 15% of the difference between the amount of tax payable on the basis of the incorrect return, statement, declaration or account and the amount so payable if the return, statement etc. had been correct (see section 1077E(11)),
  • in the case of a person who had failed to make a return, the amount of the penalty determined by the court does not exceed 15% of the difference between the amount of tax paid before the start of any Revenue enquiry or investigation and the amount that would have been payable on the basis of a correct return etc. for the period (see section 1077E(12)).

(Similar rules apply in relation to Court imposed penalties in respect of VAT and Stamp Duty defaults).

  • the total amount of tax, interest and penalties does not exceed the relevant amount referred to in subsection (4A)(a) (currently €35,000), or
  • the defaulter has made a qualifying disclosure.

Additional particulars for inclusion in list

(5) The Revenue Commissioners may, at their discretion, include certain additional particulars in relation to a defaulter in any list to be published. These are —

  • (5)(a) particulars of the matter giving rise to the fine or penalty or to the settlement,
  • (5)(b) particulars of any interest, fine, penalty or sanction involved in a case, whether imposed by a court or included as a constituent amount in a settlement, and
  • (5)(c) particulars of any amount of tax that has been determined, whether or not paid, by reference to which a court had determined a penalty under section 1077B.

(5A) The published particulars may also include:

  • in a case where a court fine has been imposed, a summary description of the act, omission or offence concerned and this description may also include details of the circumstances surrounding it,
  • in a settlement case, a summary description of the matter giving rise to the liability and this description may also include details of the circumstances surrounding it,

(5B) In a settlement case to which subsection (2B) applies (i.e. where the defaulter fails to pay the specified sum or adjusted specified sum, as the case may be) the published particulars shall include the fact that the defaulter failed to pay the sum.

This section is replaced by section 1086A from 1st January 2022

Relevant Date: Finance Act 2021