Committee Reports > List of Committees > Joint > 1979 > Committee on the Secondary Legislation of the European Communities > Report No. 50 - Statutory Instruments [9]

APPENDIX II

European Communities (Mutual Assistance in the Field of Direct Taxation) Regulations, 1978 [S.I. No. 334 of 1978]

An Rúnaí,

An Roinn Airgeadais.

I am directed by Mr. Mark Clinton, T.D., Chairman of the Joint Committee on the Secondary Legislation of the European Communities to refer to the European Communities (Mutual Assistance in the Field of Direct Taxation) Regulations, 1978 [S.I. No. 334 of 1978] and to request you to be good enough to furnish for the information of the Joint Committee an explanatory memorandum on the following points:—

1. Where information is requested in a particular case Article 2 (1) of Council Directive 77/799/EEC would appear to envisage it being left to the discretion of the competent authority of the requested State whether or not to supply the information if it appears that in certain circumstances the competent authority of the State making the request has not exhausted its own usual sources of information. As S.I. No. 334 specifically refers to any information required to be disclosed by the Council Directive, is it correct to assume that it is not the intention to confer on the Revenue Commissioners any such discretion by virtue of the statutory instrument?

2. Article 2 (2) of Council Directive 77/799/EEC requires the competent authority of the requested State to conduct any enquiries necessary to obtain information requested in a particular case. What is the statutory provision in this country which is considered to empower the Revenue Commissioners to conduct such enquiries?

M. G. KILROY,

Cléireach an Chomhchoiste.

9 Eanáir. 1979.

Clerk to the Joint Committee on the Secondary Legislation of the European Communities,

Leinster House,

Dublin, 2.

I am directed by the Minister for Finance to refer further to your letter of 9 January about the European Communities (Mutual Assistance in the Field of Direct Taxation) Regulations, 1978 (S.I. No. 334 of 1978).

The following is the information requested.

1. In the context of the exchange of information on request, the “information required to be . . . disclosed”, as provided for in Paragraph 3 (1) of S.I. No. 334, is considered to be information which, by reference to the provisions of the Directive, may correctly be requested by the State making the request and which must be exchanged by the requested State. If it appeared to the Revenue Commissioners that, in the case of any request for information made to them, the competent authority of the other State had not exhausted its own usual sources of information, the Commissioners would not regard such information as “information required to be . . . disclosed” until such time as the State making the request had exhausted its own usual sources of information.

2. The requirement imposed by Article 2.2 of the Directive on the competent authority of the requested State to conduct enquiries to obtain the information requested in a particular case is limited by Article 8.1 which provides that the “Directive shall impose no obligation to have enquiries carried out . . . if the Member State, which should furnish the information, would be prevented by its laws or administrative practices from carrying out these enquiries . . .”.

The general powers of the Commissioners are provided for in section 155 of the Income Tax Act, 1967, which places the duties of income tax under the care and management of the Revenue Commissioners. Subsection (2) of that section empowers the Commissioners to “do all such acts as may be deemed necessary and expedient for raising, collecting, receiving and accounting for the tax”. Other provisions in the Act authorise the Commissioners to require production of accounts, etc. in particular circumstances while still further provisions empower the inspectors of taxes, by issue of notices, to require submission of returns of income, returns of interest paid, particulars of rents, fees, emoluments, etc. A copy of the most relevant provisions of the Income Tax Act, 1967, is attached, as follows:

s. 70—Power to require return of partnership income

94—Power to obtain information about rents

169—Power to require return of income

170—Power to require return from person acting for incapacitated or non-resident person

172—Power to require return of income

173—Power to obtain information as to fees, commissions, etc.

174—Power to require production of accounts and books

175—Power to obtain information as to interest

176—Power to obtain information from person in receipt of income of others

178—Power to require employers to provide details of payments to employees.

P. B. DUFFIN.

27th February, 1979.