An investigation into the use of trusts and offsure structures by Irish residents to avoid paying tax is to be launched by the Revenue Commissioners.
People found to have used trusts and structures to avoid paying tax will face fines and possible criminal investigation.
A voluntary disclosure scheme will remain open until September 1st to allow individuals who have unpaid taxes to declare their tax liabilities. A full disclosure with all due tax, interest and penalties must be made by October 31st.
Revenue said that those who avail of the disclosure scheme will face smaller penalties for underpaid taxes. Defaulters will also not have their name included in the quarterly list published in Iris Oifigúil and will not face prosecution.
The Institute of Chartered Accountants in Ireland (ICAI) said today the new investigation is structured in the same way as previous investigations into Deposit Accounts, Offshore Assets and Single Premium Insurance Policies.
“While the subject matter of this investigation is complex, Revenue’s focus is simple. Revenue want to establish whether moneys put in trust were properly taxed in the first instance. They are seeking to ensure that trust structures, whether onshore or off-shore, are not being used to hide untaxed income and gains," said ICAI director of taxation Brian Keegan.
