Tax avoidance

Transactions at risk of Revenue review

You may have entered into a transaction 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 this under the General Anti-Avoidance Rule (GAAR), you can file a protective notification. This will ensure that if Revenue successfully challenges the scheme under the GAAR, you may not have to pay the tax avoidance surcharge of 30%.

Where Revenue receives a valid Protective Notification, interest will not accrue until 30 days after any assessment is made by us under the GAAR. These protections do not apply to a challenge made outside of the GAAR.

When making a Protective Notification, you must:

  • file it within 90 days of the date the transaction commenced
  • 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 consider the GAAR does not apply
  • and
  • include copies of all documentation relevant to the scheme.

A Protective Notification cannot be made where the transaction is subject to the mandatory disclosure regime. However, in certain circumstances, this does not apply where a promoter has failed to make a mandatory disclosure. For further details, please see Detailed guidance notes on GAAR.

The GAAR removes certain time limits on Revenue’s right to

  • carry out actions
  • make  enquires
  • make, or amend, an assessment
  • and
  • collect any tax.

However, these time limits still apply if a valid Protective Notification is received by Revenue.