Taxes Consolidation Act 1997 section 811D

Transactions to avoid liability to tax: surcharge, interest and protective notifications

Section 811D imposes a surcharge on persons who claim a tax advantage from a tax avoidance transaction, provides for the making of protective notifications to mitigate the consequences of a transaction being found to be a tax avoidance transaction, and allows for reduced surcharges where a qualifying avoidance disclosure is made.

• A surcharge of 30 per cent of the tax advantage applies where a person submits a return claiming the benefit of a transaction that would, but for section 811C or a specific anti-avoidance provision listed in Schedule 33, give rise to a tax advantage.
• A taxpayer who files a protective notification with Revenue within 90 days of commencing a transaction is protected from the surcharge, benefits from a deferred due date for any tax arising, and limits Revenue's ability to enquire into or assess the transaction to the standard statutory time limits.
• A taxpayer who makes a qualifying avoidance disclosure — a full written disclosure accompanied by payment of tax and interest — can avail of a reduced surcharge on a sliding scale depending on the stage at which the disclosure is made and whether the transaction is a disclosable transaction.
• The section applies only to transactions commenced after 23 October 2014.