Tax avoidance

Informing Revenue of tax avoidance

You may have entered into a tax avoidance transaction without being fully aware of what it was. If so, you may decide to come forward and settle your tax affairs with Revenue. You can inform Revenue of this by making a qualifying avoidance disclosure.

By making a disclosure you may receive a reduction in the 30% tax avoidance surcharge. You will also not have your details published on the list of tax defaulters.

When you make a qualifying avoidance disclosure it must:

  • give the full details of the tax avoidance
  • be made in writing
  • be signed by you, or on your behalf
  • include a declaration that all details in the disclosure are correct
  • and
  • include a payment of tax or duty due and interest.

A taxpayer can submit a qualifying avoidance disclosure at any time after filing their tax return. This is provided it is before the hearing of a taxpayer's case by the Appeal Commissioners. The rate of tax avoidance surcharge will increase as any Revenue compliance intervention progresses. Less interest will arise the earlier a taxpayer submits a qualifying avoidance disclosure and pays the additional tax due.

You can make a disclosure by completing the following forms:

  • Form QAD1 - to make a qualifying avoidance disclosure
  • Form QAD1 - continuation
  • Form QAD2 - to accompany the QAD1 if you want to specify the amount of the tax avoidance surcharge you believe should apply.

A detailed explanation of the Qualifying Avoidance Disclosure process is set out in Revenue’s Code of Practice.

Next: Transactions at risk of Revenue review