905 Inspection of documents and records

Summary

This section enables an authorised officer, at a reasonable time, to enter premises, where any trade or profession is carried on, in order to inspect records relevant to establishing or verifying any tax liability. However, entry to a private residence is only permitted with the consent of the occupier or on foot of a warrant issued by the District Court. The authorised officer is empowered to remove the records (not subject to professional privilege) for examination and to require certain persons at the premises to render all reasonable assistance. A person who fails to comply with an authorised officer is liable to a penalty of €4,000.

Details

Definitions

(1) “authorised officer” is a Revenue officer specifically authorised by the Revenue Commissioners to exercise the powers conferred by this section.

“property” is any asset relating to a tax liability.

“records” is defined so as to include all written, printed and computer stored information which relates to a business carried on by a person or which a person is obliged to either keep or produce for tax purposes.

“tax” is defined so as to apply to all taxes and duties, levies and charges which are administered by the Revenue Commissioners.

“tax liability” includes both current liabilities and liabilities which arise as a consequence of the exercise of the powers of this section by an authorised officer.

Powers

(2)(a) An authorised officer may at a reasonable time enter any premises if he/she believes —

• a taxable activity is being carried on or has been carried on there,
• records relating to the taxation of this activity or other tax records are located there, or
• any property is or has been kept at the premises.

The authorised officer is empowered to require any person at the premises (other than a customer) to produce records or property.

If the records or property he/she is seeking are not produced, the authorised officer may search the premises for the records or property. The authorised officer is entitled to —

• examine and take copies or extracts from any records or property;
• remove and retain records for further examination or for subsequent legal proceedings;
• examine property listed in any records.

(2)(b) The authorised officer may require reasonable assistance from any person whom he/she believes —

• is or was engaged in the trade, profession or activity,
• is or was liable to any tax, or
• has information relating to any tax liability.

(2)(c) A person carrying on a profession shall not be required to disclose –

• information to which a claim of legal professional privilege could be maintained in legal proceedings,
• information of a confidential medical nature, or
• professional advice of a confidential nature given to a client (other than advice given as part of a dishonest, fraudulent or criminal purpose).

(2)(d) [Subsection (2)(d), which prohibited entry to financial institutions, was repealed by the Finance Act 1999.]

(2)(e) An authorised officer may not enter a private residence without the consent of the occupier except on foot of a warrant issued under subsection (2A).

Application for search warrant

(2A) An application can be made by an authorised officer to a District Court Judge for a warrant to empower the officer, accompanied by other named Revenue officials and other persons, to enter within one month of the issue of the warrant (if need be by force), a premises or place for the purposes of searching and examining anything found there. If the officer has reasonable grounds for suspecting that any records found there are material to the proper assessment or collection of tax (or required for legal proceedings instituted by a Revenue officer) the records can be removed and retained. Before issuing a search warrant, the Judge must be satisfied by information given on oath that there are reasonable grounds for suspecting —

• that a person may have failed, or may fail, to comply with the Acts,
• that any such failure would be prejudicial to the proper assessment and collection of tax, and
• that records which are material to such assessment or collection are likely to be kept or concealed at the premises or place for which the warrant is sought.

Penalty

(3) Failure to comply with the requirements of an authorised officer in the exercise or performance of his or her powers or duties leaves a person liable to a penalty of €4,000.

Proof of authorisation

(4) Proof of authorisation under this section must be shown by an authorised officer on request.

Relevant Date: Finance Act 2021