Dealing with tax professionals to achieve improved compliance

with the law

Dealing with tax professionals to achieve improved compliance

with the lawDenis Graham, Assistant SecretaryDenis Graham, Assistant Secretary

Revenue Commissioners

IntroductionIntroduction

Majority of taxpayers use tax professionalsMajority of taxpayers use tax professionals Key influencers of tax compliance Key influencers of tax compliance

behaviour of clientsbehaviour of clients Positive or negative influencePositive or negative influence Role in shaping tax systemRole in shaping tax system Role in forming public opinion Role in forming public opinion

Our StrategyOur Strategy

Statement of Strategy 2005 - 2007Statement of Strategy 2005 - 2007 ““To ensure that everyone complies with To ensure that everyone complies with

their tax and customs responsibilities”their tax and customs responsibilities” Building relationships and partnership Building relationships and partnership

strategystrategy Support, service, consultation the norm Support, service, consultation the norm

Ireland’s Tax SystemIreland’s Tax System

Direct, indirect taxes, customs and dutiesDirect, indirect taxes, customs and duties Self - assessmentSelf - assessment 460,000 self -employed460,000 self -employed 130,000 limited companies130,000 limited companies 1.8 m PAYE taxpayers who don’t file1.8 m PAYE taxpayers who don’t file

Revenue CommissionersRevenue Commissioners

6,500 employees6,500 employees Single tax and customs organisationSingle tax and customs organisation Corporate GovernanceCorporate Governance Recent major organisational restructuring Recent major organisational restructuring

Our Tax ProfessionalsOur Tax Professionals

Wide range and variety of functionsWide range and variety of functions SSelf-employed elf-employed PAYE taxpayers - low representationPAYE taxpayers - low representation 5,000 registered with Revenue5,000 registered with Revenue Lawyers - v - Accountants Lawyers - v - Accountants

Regulation Regulation

Indirect regulation by RevenueIndirect regulation by Revenue Recent reformsRecent reforms Companies (Accounting & Auditing) Act, Companies (Accounting & Auditing) Act,

20032003 IAASAIAASA Aiding and abetting offence - Finance Act, Aiding and abetting offence - Finance Act,

20052005 Prosecution of Prosecution of offencesoffences

Influencing Compliance BehaviourInfluencing Compliance Behaviour Key influencersKey influencers Non-compliance costs moneyNon-compliance costs money Reduced administration costsReduced administration costs Our strategy to provide support servicesOur strategy to provide support services Voluntary compliance easierVoluntary compliance easier

Support for Tax Professionals Support for Tax Professionals

New StructureNew Structure Information ToolsInformation Tools TechnologyTechnology Fair ProcedureFair Procedure

New StructureNew Structure

One stop shop for all taxesOne stop shop for all taxes Special contact points for tax Special contact points for tax

professionalsprofessionals Contact locatorContact locator

Information ToolsInformation Tools

Clear and timely communicationClear and timely communication Website - Tax Professionals pageWebsite - Tax Professionals page E-briefE-brief Tax Briefing magazineTax Briefing magazine

Tax Briefing MagazineTax Briefing Magazine

Exploiting TechnologyExploiting Technology

Revenue on line serviceRevenue on line service

Better and faster serviceBetter and faster service

Reduced costsReduced costs

Fair ProcedureFair Procedure

Internal and External ReviewInternal and External Review

Audit Code of Practice Audit Code of Practice

ConsultationConsultation

More effective administrationMore effective administration

Mutual self-interestMutual self-interest for common sense and for common sense and clarityclarity

Practical perspectivesPractical perspectives

ConsultationConsultation

Formal Work Group - TALCFormal Work Group - TALC Tax Administration and Liaison CommitteeTax Administration and Liaison Committee Created in 1989Created in 1989 Main objectivesMain objectives SubcommitteesSubcommittees

Consultation - TALCConsultation - TALC

ExamplesExamples

Code for Revenue AuditorsCode for Revenue Auditors

Statement of Strategy 2005- 2007Statement of Strategy 2005- 2007

ConsultationConsultation

Joint ConferencesJoint Conferences

““Dealing with Challenging Times”Dealing with Challenging Times”

Benefits of Benefits of Co-operative Approach to Approach to RevenueRevenueBenefits of Benefits of Co-operative Approach to Approach to RevenueRevenue

Promoting and fostering a pro-compliance Promoting and fostering a pro-compliance CultureCulture

Catalyst and Facilitators of changeCatalyst and Facilitators of change

ExamplesExamples

Move to self-assessmentMove to self-assessment

On-line filing sOn-line filing serviceervice – ROS – ROS

Organisational restructuringOrganisational restructuring

Challenges AheadChallenges Ahead

Tax Planning/AvoidanceTax Planning/Avoidance Co-operative Compliance FrameworksCo-operative Compliance Frameworks Integrated view of Revenue riskIntegrated view of Revenue risk More professional regulationMore professional regulation Legacy businessLegacy business

ConclusionConclusion

Tax professionals offer a critical viewTax professionals offer a critical view Key stakeholders - a sense of ownership in Key stakeholders - a sense of ownership in

tax systemtax system Partnership approach prevents distrustPartnership approach prevents distrust Relationship has helped in building public Relationship has helped in building public

confidenceconfidence Paying tax will never be popularPaying tax will never be popular

"To tax and to please, no more than to love and to be wise, is not

given to man"

"To tax and to please, no more than to love and to be wise, is not

given to man"Edmund Burke, On American Edmund Burke, On American

Taxation, 1775, Graduate of Trinity Taxation, 1775, Graduate of Trinity College, Dublin.College, Dublin.

THANK YOUTHANK YOU