Tax avoidance

Mandatory Disclosure regime

The Mandatory Disclosure regime places an obligation on promoters, marketers and users of ‘disclosable transactions’ to notify Revenue about the transaction. A ‘disclosable transaction’ is any transaction meeting all of the following conditions and not specifically excluded by the legislation:

  • it may result in a person receiving a tax advantage
  • the tax advantage is, or might be expected to be, one of the main benefits of the scheme
  • the scheme matches any one of the specified descriptions set out in the legislation.

Mandatory disclosures are usually made by the promoter of a scheme. However, in the following situations the user of a scheme must make the disclosure:

  • when the promoter is outside Ireland
  • when the promoter cannot make a disclosure due to legal professional privilege
  • when there is no promoter and the scheme is specific to a certain group, or for their own use.

The disclosure should include details of the scheme and of any person who will use it. Revenue will issue a transaction number specific to that scheme. This should not be regarded as Revenue approving the transaction. It is merely part of the process whereby the promoter is complying with their obligations under the mandatory disclosure regime. In some cases, we may state that a scheme does not need to be disclosed.

If you take part in a disclosable transaction you must put the scheme's transaction number on either your:

If you have not been provided with a transaction number in relation to a disclosable transaction, you must inform Revenue. Provide any information reasonably required in order for us to determine whether or not penalties should be sought against the promoter.

The disclosure must give enough information to allow us to understand how the scheme works. It should also identify the relevant Irish tax law on which the scheme relies. If you fail to comply with the obligations imposed by the mandatory disclosure legislation you may be charged a penalty.

Next: Informing Revenue of tax avoidance