Waiver of Certain Tax, Interest and Penalties Act, 1993

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Furnishing of certain information by financial institutions.

13.—(1) In this section “authorised officer”, “books”, “financial institution” and “person” have the same meaning as in section 18 of the Finance Act, 1983 .

(2) Notwithstanding any other provision of the Tax Acts, where—

(a) a person who, for the purposes of tax, has been duly required by an inspector to deliver a statement of the profits or gains arising to him from any trade or profession or to deliver to the inspector a return of income, fails to deliver that statement or that return to the inspector, or

(b) the inspector is not satisfied with such a statement or return so delivered,

an authorised officer may, if he—

(i) has reasonable grounds to believe that the person maintains or maintained an account or accounts (being an account or accounts from which the person may withdraw monies), the existence of which has not been disclosed to the Revenue Commissioners, with a financial institution or that there is likely to be information in the books of that institution indicating that the said statement of profits or gains or the said return of income is false to a material extent, and

(ii) on application by him to the Appeal Commissioners, they determine that, in all the circumstances, he is justified in requiring the financial institution to furnish him—

(I) with particulars of all accounts maintained by that person, either solely or jointly with any other person or persons, in that institution during a period not exceeding 10 years immediately preceding the date of the application, and

(II) with such information as may be specified by the authorised officer with the consent of the Appeal Commissioners relating to the financial transactions of that person, being information recorded in the books of that institution which would be material in determining the correctness of the statement of profits or gains or the return of income delivered by that person, or, in the event of failure to deliver such statement or return, would be material in determining the liability of that person to tax,

require that financial institution to furnish such particulars or information.

(3) An application by an authorised officer under subsection (2) shall, with any necessary modifications, be heard by the Appeal Commissioners as if it were an appeal against an assessment to income tax, and a copy of the application shall, as soon as is practicable, be furnished by the authorised officer to the financial institution concerned and the person concerned, and the said financial institution and person shall be entitled—

(a) to be present during all the time of the hearing of the application, and

(b) to produce lawful evidence, and

(c) to be represented by—

(i) a barrister,

(ii) a solicitor,

(iii) an accountant (being any person who has been admitted and is a member of an incorporated society of accountants),

(iv) a person who has been admitted and is a member of the body incorporated under the Companies Act, 1963 , on the 31st day of December, 1975, as “The Institute of Taxation in Ireland”, or

(v) such other person as the Appeal Commissioners permit,

to plead on their behalf before the Appeal Commissioners.

(4) Section 428 of the Income Tax Act, 1967 , shall, with any necessary modifications, apply to a determination by the Appeal Commissioners under subsection (2) as it applies to the determination by those Commissioners of an appeal against an assessment to income tax.

(5) Where the Appeal Commissioners have made a determination in accordance with subsection (2), the authorised officer shall, as soon as practicable but not later than 14 days from the time at which such determination was made, give a notice in writing to the financial institution and the person stating that—

(a) such a determination has been made, and

(b) the financial institution should, within a period of 30 days from the time at which the financial institution received such notice, furnish the particulars or information as may be specified in the notice.

(6) A financial institution which fails to comply with a request issued to it by an authorised officer in accordance with the provisions of subsection (2), shall be liable to a penalty of £15,000 and, if the failure continues after the expiry of the period specified in subsection (5) (b), a further penalty of £2,000 for each day on which the failure so continues.