Qualifying Avoidance Disclosure Forms now Available

Qualifying Avoidance Disclosure Forms now Available 

Taking its news from Revenue website,  Intelligo has announced that Section 87(1)(b)(i) of the Finance Act 2014 allows a taxpayer, who entered into a tax avoidance transaction on or before 23 October 2014, to settle with Revenue by paying the tax or duty due and payable and a reduced amount of interest.

To avail of this opportunity, a taxpayer must make a “qualifying avoidance disclosure” in writing to the Revenue Commissioners on or before 30 June 2015.

Why make a “qualifying avoidance disclosure”?

Where a taxpayer makes a “qualifying avoidance disclosure” the legislation provides as follows:

  • a 20% reduction in the interest that would otherwise be payable, and
  • the 10% or 20 % surcharge will not apply under Section 811A TCA 1997.

It should be noted that Revenue’s policy is to actively challenge tax avoidance transactions and to litigate such cases in the Courts where Revenue is of the view that a tax avoidance transaction is not effective under tax legislation in achieving the intended tax advantage.

It should be noted that the opportunity afforded by section 87(1)(b)(i) is strictly time-bound. After 30 June 2015, the existing policy about challenging pre-24 October 2014 tax avoidance transactions will apply.

How to make a “qualifying avoidance disclosure.”

A qualifying avoidance disclosure must be made in writing to Revenue on or before 30 June 2015.

The disclosure must:

  • provide complete information about, and full particulars of, the tax avoidance transaction;
  • contain a declaration that, to the best of the taxpayer’s knowledge, information and belief, the disclosure is correct and complete;
  • be accompanied by payment of all the tax due;
  • be accompanied by payment of 80% of any interest due; and
  • be signed by or on behalf of the taxpayer.

Disclosures should be made using a Form QAD1 or Form QAD2 (continuation sheet) and submitted to:

Qualifying Avoidance Disclosure Unit,
Large Cases Division,
Ballaugh House,
73-79 Mount Street,
Dublin 2.

The forms are now available below: