The chairman of the Revenue Commissioners, Mr Dermot Quigley, has said it will take a "common-sense approach" to minor documentation deficiencies during its DIRT audit of companies at the International Financial Services Centre (IFSC).
Speaking in Dublin yesterday, Mr Quigley said the audits should be completed by the summer. He added that the Revenue had given assurances to IFSC companies that audit results would be presented to each institution on completion and they would be given a chance to react before any conclusions were reached. "I think this is a reasonable approach. Revenue is determined to discharge its responsibilities, even-handedly and reasonably, across the range of financial institutions involved. We will not be deflected from the task in hand."
Addressing a conference organised by Finance Dublin, which was attended by representatives of IFSC companies, Mr Quigley said the focus of Revenue audits was on checking a sample of the relevant accounts in the institutions concerned.
"We intend to complete these audits by the middle of the year if possible. The results will be used by Revenue to estimate arrears of DIRT tax and will also form the basis of the report that Revenue must make to the Public Accounts Committee."
Mr Quigley said there was no basis for the view that DIRT audits shouldn't apply to IFSC companies, referring to the recent controversy when the Revenue Commissioners' tough stance on the application of DIRT legislation was highlighted by the industry representative body, the Financial Services Industry Association.
The chairman of the Revenue Commissioners met association representatives last month to discuss their concerns and offered reassurances that the Revenue would be pragmatic.
"The current programme of audits is a new experience for both Revenue and for the financial institutions. There is no reason why these powers, used reasonably and regularly, should pose problems for IFSC or other institutions. Such powers, indeed more onerous ones, exist in other countries," he said.
"An effective tax regulatory regime is increasingly important if we are to avoid international problems. It is in all our interests to have an effective tax system and to guard against abuses of the system."
Mr Quigley said the Revenue remained firmly committed to operating positively, within the law and using best international practice, in encouraging the consolidation and future development of the IFSC.
"Our organisation is under scrutiny to a greater extent than ever before as a result of the work of the public inquiries and tribunals.
"Our workload has increased enormously. But we are determined to continue with our efforts to promote voluntary compliance and consultation with taxpayers and practitioners," Mr Quigley said.
