The Irish Tax and Customs site introduced the latest updates in late January, outlining frequently asked questions, and covering topics such as the different types of tax avoidance arrangements, giving advice over uncertainty of tax treatment and the consequences of avoiding disclosure.
The Revenue said: “It is a long established principle that taxpayers do not have to arrange their tax affairs in a way that makes sure they pay the maximum possible tax.
“Taxpayers are fully entitled to structure their affairs in a tax-efficient manner. But there is a difference between structuring your affairs in a tax-efficient manner – claiming the reliefs in the manner in which they were intended to be claimed by the Oireachtas [Irish parliament] – and tax avoidance.”
The site states all the information pertains to tax avoidance transactions that began after 23 October 2014.
Costs outlined
It gives a number of examples of the potential costs to a taxpayer who engages in avoidance measures.
The Revenue also offers explanations around “expressions of doubt” when taxpayers are genuinely uncertain about the tax treatment of a particular matter, which might protect taxpayers from interest on late payments and reduces the chance of penalty charges.
But the Revenue stresses: “However, an expression of doubt will not protect you from interest or penalty where you have entered into a transaction to avoid or evade tax.
“In this regard, the legislation specifically provides that an expression of doubt shall not be accepted where Revenue is of the opinion that the taxpayer was acting with a view to the evasion or avoidance of tax.”
