THE REVENUE Commissioners will be able to name tax defaulters even if they have not paid or agreed a settlement under measures contained in the Finance Bill.
Defaulters had previously avoided being named in the Revenue’s quarterly list by avoiding the payment of settlements. The Bill closes this loophole, allowing the Revenue to publish the name of the defaulter where they have agreed to the settlement involving unpaid tax, interest and penalties.
The legislation will allow the Revenue to publish the name of a defaulter who does not agree to a settlement but where the tax liability is determined by the Appeal Commissioners or the courts.
The Bill will also enable the Revenue to impose a penalty of €3,000 on a person who makes a false claim or assists in making a false claim on tax credits or refunds. The Revenue will be able to recover from individuals any tax refunded on the basis of a false claim and to charge interest on the tax from the date it was refunded.
The use of software commonly known as “zappers” on cash registers and point-of-sale records – which falsifies the turnover of a business, thereby reducing tax due on sales – will also be outlawed under measures in the Bill.
The Revenue will be able to apply stringent penalties for the use of this software, which has been found to have been used significantly in other countries.
Supplying computer programmes or electronic components to change electronic records without preserving the original data will become an offence.
Changes are being introduced to reduce the issue of paper receipts for tax payments in an effort to cut down on costs. The Bill aims to make the issuing of electronic receipts the norm.
Any information relating to taxpayers handed over to Revenue will also become subject to statutory confidentiality under the Bill.
The changes mean this information held by the Revenue can only be disclosed in exceptional cases, such as in connection with criminal or legal proceedings. The measure covers material used by the Department of Finance in forming and evaluating policies.
Disclosure rules are being introduced under the Bill to create an “early warning” system for Revenue to stop “unacceptable” tax avoidance schemes being set up by accountants, tax consultants, banks and financial institutions.
The rules were in last year’s Finance Bill but will come into effect under the Bill after the Minister signed off on the publication of regulations on “mandatory disclosure of certain transactions” on Monday.
The first disclosures will not have to be made for three months from the time the final regulations come into effect. Mr Lenihan said the regulations are aimed at “the small minority of advisers with the propensity to devise and market aggressive avoidance schemes”.
