Opportunity to negotiate settlement with Revenue?

Changes to the Tax Appeal Process

The Finance (Tax Appeals) Act 2015 was signed into law on Christmas day 2015 and has been commenced by ministerial order with effect from 21 March 2016.

Key changes

•  A new body known as the Tax Appeals Commission (the TAC) has been established which replaces the existing Office of the Appeal Commissioners
• All appeals are to be made directly to the TAC and not the Revenue Commissioners
• The time-limit for making of an appeal is 30 days for all tax heads.
• There is no longer a right to a rehearing for taxpayers before the Circuit Court. The only avenue of appeal is a case stated to the High Court on a point of law.
• The Tax Appeal Commissioners are required to publish anonymous versions of all their determinations within a period of 90 days after they notify the parties of their determinations.
• The default position is that hearings will be held in public unless the appellant requests that the hearing is held in private.

Appeals currently in the system

We understand that there are circa 3,000 of unresolved appeal cases throughout Ireland, some as old as 10 years.

Revenue has confirmed that they are now directly contacting all relevant tax payers to determine whether the unresolved matter should be transferred to the new Tax Appeals Commissioner or whether the tax payer wishes to attempt to settle the appeal by agreement with Revenue.

Revenue has confirmed that where the settlement option is taken, they will provide a 3 month window for discussions between the tax payer and Revenue in order to reach such a settlement. If this option is not taken then the ongoing appeal will be transferred into the Tax Appeals Commission.

It is our view that this presents a great opportunity to reach a potentially beneficial settlement with Revenue as they have indicated that they will take a pragmatic approach in settling these cases.  Cases where a settlement is not reached will be transferred to the TAC for hearing.

It is vital that the option to enter into discussions to settle with Revenue is chosen within 30 days of receipt of the Revenue letter by ticking the relevant box and returning the letter to Revenue.

If you or any of your contacts/colleagues have an ongoing appeal matter and need assistance or advice in relation to this matter, we would be delighted to assist.