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Tax avoidance - Settlement incentives

Bernard Doherty Bernard Doherty

Section 811A (2A) TCA 1997, as amended by Finance Act 2014, provides an opportunity to persons who had engaged in unacceptable tax avoidance (i.e. entered into a transaction to avoid tax on or before 23 October 2014) to come forward to Revenue on or before 30 June 2015, and settle their affairs in such a way that no surcharge will apply and any interest payable will be capped at 80% of the interest otherwise so payable.

This settlement opportunity is available to persons who had entered into a transaction and either the Revenue had formed the opinion that the transaction was a tax avoidance transaction or the Revenue could have successfully challenged the transaction by forming an opinion under Section 811 TCA 1997 that it was a tax avoidance transaction.

To avail of this opportunity, the taxpayer must make a qualifying avoidance disclosure in writing, containing full details of the transaction and must be signed. It must also be accompanied by full payment of the tax and any interest due.