The Revenue Commissioners have published a consultation document and draft regulations relating to the mandatory disclosure of tax avoidance schemes.
The legislation requires the promoters of tax schemes that have certain characteristics to disclose them to the Revenue shortly after they are first marketed or made available for use.
The consultation follows on a commitment to that effect given by the Minister for Finance during the Finance Bill 2010 debate on the legislation. The consultation period runs until 15 September 2010.
The primary purpose of the disclosure regime is to create an early warning system for the Revenue Commissioners of tax schemes that may be potentially damaging to tax revenues.
By obtaining information on tax avoidance schemes at an early stage before a loss of tax revenue has become apparent, the Government can decide, if appropriate, to close them down before significant damage is done.
