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Ireland's political and cultural magazine
8 February 2016
T
HE Department of Finance disregarded argu-
ments by the Revenue Commissioners and its
own civil servants that all tax appeal hearings
should be held in public.
Finance Minister Michael Noonan instead
signed off on legislation whereby those involved in tax
appeals can decide to have their hearings held privately
… a choice that virtually all seem certain to take advan-
tage of.
The decision to allow these optional private appeals
was made despite Revenue advice that open hearings
would help public confidence and show that tax law was
fair and “even-handed”.
A ministerial submission obtained by Village under
Freedom of Information legislation explained that the
Revenue Commissioners had been fully in favour of
holding tax appeal hearings in public.
It explained:
“Revenue favour the replacement of in camera hear-
ings with public appeal hearings. Its view was that
public hearings could enhance public confidence that
the tax system was being administered and the law
being applied in an even-handed way.
It considered that the current
appeals system was established
many years ago and its in camera
hearing of appeals now appears
to be out of line with modern
developments in both interna
-
tional and Irish law”.
Revenue had pointed out that
such hearings were held in public
in the UK and that a similar
system already existed within Ire-
land for the Employment Appeals
Tribunal.
The submission, which dates from late 2014, also
pointed out that there was a “mistaken public impres-
sion” that people’s tax affairs enjoyed “some special
degree of confidentiality”.
The document explained: “Revenue is not bound by
such confidentiality in the case of legal proceedings”.
The proposal for public hearings was also supported
by Minister Noonan’s own officials, despite the “con-
flicting views” that had emerged during the consultation
process for the new legislation.
Representative bodies – including tax accountants
and lawyers – had argued that public hearings would
discourage individuals from appealing and see the
release of commercially sensitive information.
They had also argued that information about third
parties can be divulged during such hearings and that
the constitutional principle of court proceedings being
held in public does not apply to tax appeals.
However, the Minister’s officials still remained in sup-
port of public hearings, saying that “in camera tax
appeal hearings [should] become the exception rather
than the norm”.
It suggested that specific safeguards could be put in
place for certain types of appeals.
The submission explained: “Thus, for example,
public hearings would not apply in the case of appeals
that might have implications for public order or national
security or involving sensitive matters other than a per-
son’s financial affairs.
The Appeal Commissioners would also have the flex-
ibility to hear part of an appeal ‘in camera’ and to
exclude certain parties from proceedings or part of
proceedings”.
by Ken Foxe
NEWS
Tax: Limited
Public Appeal
FoI shows Revenue wanted
open hearings to show tax law
even-handed. TDs and small
business didn’t
Such hearings are
held in public in the
UK and that a similar
system already existed
within Ireland for
the Employment
Appeals Tribunal
February 2016 9
They said this would bring the tax appeal
system into line with best practice both inter-
nationally and nationally and strengthen the
independence of the Appeals Commissioner.
A second submission was also prepared for
Minister Noonan after discussions of the pro-
posed tax appeal system took place at the
Oireachtas Joint Committee on Finance, Public
Expenditure and Reform in January of last year.
It explained how members of that committee
had questioned the justification of ending in
camera hearings.
The Committee members had asked if “this
would in fact add value to the process, and
whether it would discourage taxpayers from
appealing, and particularly militate against
smaller taxpayers”.
The Revenue Commissioners were again con-
tacted for their input in March last year and
again emphasised their preference for appeals
that were open to the public.
They said: “Revenue supports the move to
public appeal hearings on the basis that it will
result in a more transparent process and
enhance public confidence that the system is
independent”.
By April, Minister Noonan was presented with
another submission, taking into account the
concerns of the Oireachtas Joint Committee.
It explained: “The Committee concludes that,
while the default position may be for public
hearings, it is preferable, on balance, that if the
appellant requests it, the hearing be held in
private.
The Committee considers that transparency
can be enhanced and clarity provided to taxpay-
ers and the general public if all hearings are
accompanied by written determinations, as is
proposed. Appropriate redactions should be
made to protect privacy”.
By Christmas Day when the new legislation
was signed into law by President Michael D Hig-
gins, provisions for all hearings to be held in
public were gone.
The final legislation allowed taxpayers to opt
for a private appeal, and when decisions relat-
ing to their case are published – all personal
details will be excluded on the same basis.
The new legislation provides for the estab-
lishment of a tax appeals commission, which
will formalise existing arrangements and detail
how commissioners will be appointed.
It will become the first option of appeal for
taxpayers unhappy over Revenue decisions,
rather than the existing appeals mechanism
within the Revenue Commissioners, as happens
currently.
Asked about the removal of the automatic
public hearings from the legislation, the Reve-
nue Commissioners said they had “nothing
further to add”.
They said: “Responsibility for taxes legisla-
tion rests with the Minister for Finance and the
Government. Revenue’s responsibility is for the
fair and impartial administration of tax legisla-
tion in place”.
The Department of Finance in a statement
referred back to a speech given in the Dáil by
Minister of State Simon Harris in September
explaining the rationale.
“While public hearings will be the default
arrangement, part or all of a hearing will be held
in private on application by an appellant”, he
said.
“I consider that this will meet the concerns
of stakeholders, and particularly concerns
voiced by Deputies on behalf of small business
people.
Concerns were expressed that small shop-
keepers, for example, could find themselves
involved in a public hearing, perhaps with cus-
tomers in attendance, and with material from
the hearing being reported locally. Such pub-
licity could undermine their business, even if
the appeal were upheld”.
Removal of automatic in camera tax appeal hearings
