Comptroller and Auditor General and Committees of the Houses of the Oireachtas (Special Provisions) Act, 1998
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Examinations and investigations by Comptroller in relation to assessment and collection by Revenue Commissioners of income tax payable by certain financial institutions on certain payments of interest by them. |
2.—(1) Subject to the provisions of this Act, the Comptroller may, if so requested by Dáil Éireann by resolution passed consequent upon its being apprised of prima facie evidence of substantial risk to the revenues of the State— | |
(a) carry out such examinations and investigations as he or she considers appropriate of the affairs and the books of account and other records in any form and other documents in respect of the period specified in the resolution of the financial institutions specified in the resolution, being institutions that were required by Chapter IV of Part I of the Finance Act, 1986 , and Chapter 4 of Part 8 of the Taxes Consolidation Act, 1997 , to deduct amounts representing income tax from payments of amounts in respect of interest made by them during the period aforesaid on certain deposits of money with them and to pay the amounts representing income tax to the Collector-General and to make returns to the Collector-General of the amounts aforesaid of interest and the amounts aforesaid representing income tax and were required by section 175 of the Income Tax Act, 1967 , and section 891 of the Taxes Consolidation Act, 1997 , to make certain other returns to an inspector of taxes in respect of interest payable by them without deduction of income tax, | ||
(b) carry out such examinations referred to in section 3 (7) of the Comptroller and Auditor General (Amendment) Act, 1993 , and such other examinations and investigations as he or she considers appropriate, | ||
(c) if the Comptroller considers it necessary to do so for the purpose of the performance of his or her functions under this Act, appoint an auditor to carry out on his or her behalf and subject to his or her control and supervision and upon and subject to such other terms and conditions (if any) as the Comptroller may determine or the High Court may specify under section 14 such examinations and investigations as the auditor considers appropriate, for the purpose of enabling the Comptroller to perform his or her functions under this Act, of accounts or deposits held in the financial institutions aforesaid during the period specified in the resolution, and of the affairs and the books of account and other records in any form and other documents of those institutions in respect of that period in so far as they relate to such accounts and deposits; and the auditor so appointed shall carry out the examinations and investigations aforesaid, and | ||
(d) examine any report under subsection (2) furnished to him or her by an auditor appointed under paragraph (c) and, if he or she considers it appropriate to do so, discuss the report with the auditor and question him or her in relation to any particular matter in, or arising in connection with, the report, or in relation to the report generally, | ||
in order— | ||
(i) to ascertain— | ||
(I) whether the books of account, records and documents aforesaid are complete and accurate in so far as they relate to the deposits, the interest, and the amounts representing income tax, aforesaid and whether those of them that may be inspected by an inspector of taxes provide for him or her a full and true picture of the extent of those institutions’ compliance with Chapter IV of Part I of the Finance Act, 1986 , and Chapter 4 of Part 8 of the Taxes Consolidation Act, 1997 , and the said sections 175 and 891 in respect of the deposits, the interest, the amounts representing income tax, and the returns, aforesaid, | ||
(II) whether the Revenue Commissioners have taken appropriate steps to satisfy themselves as to whether those institutions have complied with the said Chapter IV, the said Chapter 4 and the said sections 175 and 891 in respect of the deposits, the interest, the amounts representing income tax, and the returns, aforesaid, | ||
(III) whether those institutions have complied with any other relevant provisions of the Tax Acts (within the meaning of the Corporation Tax Act, 1976 , and the Taxes Consolidation Act, 1997 ) in respect of the matters aforesaid, and | ||
(IV) if there is a shortfall in the amount paid by those institutions under the said Chapter IV and the said Chapter 4 in respect of the said amounts representing income tax, the reasons for and the circumstances of the shortfall, | ||
(ii) to ascertain whether systems, procedures and practices have been established that are adequate to secure an effective check on the assessment and collection and proper allocation of the amounts aforesaid representing income tax by the Revenue Commissioners and its payment by the financial institutions aforesaid to the Revenue Commissioners, and | ||
(iii) to satisfy himself or herself as to whether the manner in which the systems, procedures and practices aforesaid have been employed and applied in relation to such interest and amounts representing income tax is adequate. | ||
(2) An auditor appointed under subsection (1) shall prepare a report in writing of the results of any examinations as and investigations carried out by him or her under this section and shall, if and whenever so requested by the Comptroller, prepare an interim report in writing in relation to any such examinations and investigations and shall cause any such report to be furnished to the Comptroller. | ||
(3) The Comptroller shall prepare a report in writing of the results of any examinations (including an examination under paragraph (d) of subsection (1)) and investigations carried out by him or her under this section and shall, if and whenever he or she considers it appropriate to do so, prepare an interim report in writing on any matter in relation to which he or she has completed his or her examinations and investigations under this section, and shall cause any such report to be furnished to the Clerk of Dáil Éireann and may, if he or she considers it appropriate to do so, cause a copy of any such report to be furnished to the clerk to the Committee. | ||
(4) The functions conferred on the Comptroller by the subsequent sections of this Act may be exercised or performed only for the purposes of his or her functions under this section. | ||
(5) Examinations or investigations under paragraph (a) or (b) of subsection (1) shall not be carried out in relation to any accounts opened or deposits held by persons in the financial institutions referred to in the said paragraph (a) or any books of account or other records in any form or other documents of such institutions in so far as they relate to individual such accounts or deposits. | ||
(6) Subject to subsection (7), persons who have or have had accounts or deposits in a financial in a financial institution referred to in subsection (1) or are or were beneficial owners of such accounts or deposits shall not be referred to either in a report under this section or otherwise by the Comptroller or by an auditor appointed under subsection (1) (otherwise than for the purposes of subsection (7)) by name or in any other manner by which they could be identified as having or having had such accounts or deposits or being or having been such beneficial owners. | ||
(7) The Comptroller may furnish to the Revenue Commissioners— | ||
(a) particulars of a possible underpayment or non-payment of amounts representing income tax prima facie evidence of which is obtained by the Comptroller in the course of his or her examinations and investigations under this Act, and | ||
(b) particulars of the possible commission of an offence under section 9 of the Waiver of Certain Tax, Interest and Penalties Act, 1993 , to which subsection (1) (b) (ii) of that section relates if prima facie evidence of such commission is obtained by the Comptroller in the course of such examinations and investigations, | ||
and particulars of the persons concerned, including their names, addresses and occupations, trades or professions. | ||
(8) The utterances of an auditor appointed under subsection (1) or an employee, agent or adviser of the auditor made for the purposes of the functions of the auditor under this Act shall be absolutely privileged and those utterances, a report under this section and documents, or records, in any form made or prepared by any of the persons aforesaid for the purposes aforesaid shall be absolutely privileged wherever and however published. | ||
(9) A person who obstructs, hinders or interferes with the Comptroller or an auditor appointed under subsection (1) in the performance of his or her functions under this Act shall be guilty of an offence. | ||
(10) Section 11 (2) of the Comptroller and Auditor General (Amendment) Act, 1993 , shall not apply to an examination by the Comptroller and Auditor General under this section. |