New Revenue powers on online trade

TAX EVASION:MEASURES AIMED at a growing trend in under-reporting credit card transactions are among a number of new powers for the Revenue Commissioners contained in the Finance Bill.

Evidence is emerging that some businesses may be under-reporting card payment transactions, with the evasion taking the form of non-reporting of the online business income, according to the Department of Finance.

The problem is of relatively recent origin but is recognised as significant and may be regarded as a modern equivalent of cash “under the counter” payments, the department said.

The Bill envisages the Revenue being given new powers to seek information from companies such as Visa and Mastercard, which can then be compared with taxpayers’ submissions.

As part of the fight against the illegal trade in marked fuels, the Bill envisages the creation of a new licensing requirement for those who trade in marked fuels for such purposes as home heating or agriculture.

Authorised Revenue officers are also to be given powers that were given to Garda officers by the Criminal Justice Act 2011 whereby the District Court can order the production of certain documents or information which the officer convinces the court could assist the investigation of an offence.

Persons who knowingly give false or misleading information in response to such an order can be jailed for up to two years, under the proposed new measure.

New powers for the Collector General will allow him apply for the production of a statement of affairs from persons with whom he is negotiating.

In managing tax debt, the Collector-General bases his decisions on information that he holds and information that may be provided by a taxpayer, the department said. The Collector General needs to know about all the assets and liabilities of a tax defaulter before making decisions and a statement of affairs is considered essential in ensuring that the correct enforcement tool is used and as a means of guaranteeing that someone who is seeking an instalment arrangement is being truthful as to the state of their affairs.

The new Bill also contains measures to ensure that Ireland’s accountancy rules remain in line with other OECD countries, in particular in relation to international tax rules. These changes include new requirements whereby the records of liquidated companies, including VAT records, have to be kept for up to six years.