Tax avoidance

Schemes at risk of Revenue investigation

You may have entered into a scheme which commenced after 23 October 2014 which you do not believe to be a tax avoidance scheme. If you are concerned that Revenue may challenge it under the General Anti-Avoidance Rule (GAAR), you can file a protective notification. This will ensure that if Revenue successfully challenges the scheme you will not have to pay the tax avoidance surcharge of 30%.

The interest will not begin to add up until 30 days after Revenue's assessment.

When making a protective notification you must:

  • file it within 90 days of the date you entered the scheme
  • file it on a Form PN1
  • give full details of the scheme
  • give full details of the legislation that is relevant to your scheme, and how it is relevant
  • give full details of why you feel the GAAR does not apply
  • include copies of all documentation relevant to the scheme
  • ensure that the scheme is not subject to the mandatory disclosure regime.

The example below shows the benefit of filing a protective notification.