Irish Revenue published their 2023 Annual Report on 25 April 2024. This includes information relevant to the activities of the TP Audit Branches in Large Corporates Division and the Irish Competent Authority. 

Domestic TP Compliance – TP Audit Branches

Irish Revenue have two Principal Officer led TP audit branches in the Large Corporates Division with nationwide responsibility for conducting risk-driven TP audits and other TP compliance interventions. The first TP audit branch was formally set up in 2015 and a second in 2019. 

As reported in the 2023 Annual Report, during the period from 2015 to 2023, the TP audit branches initiated 58 TP compliance interventions, 33 of which have been finalised resulting in a yield (tax, interest, and penalties) of €748m and a restriction of trading losses of €952m (tax effect of €119m). The following table provides a more detailed breakdown of results since 2015 based on information provided in Revenue Annual Reports from 2019-2023.      

The results indicate a decline in yield from TP interventions in 2023 compared with 2022 and 2021. Nevertheless, a yield of €71.9m from the 8 TP interventions closed in 2023 accounted for over 9% of the overall compliance yield achieved by Revenue from 291,756 interventions completed in the period. This illustrates that TP audits continue to be amongst the highest yielding areas for Irish Revenue in recent years.         

In highlighting Revenue’s role of supporting Tax Policy and Reform, the Annual Report also refers to the introduction of provisions (s.891L TCA 1997) for Joint Audits between EU Member States following the implementation of DAC7 in 2023. The new provisions are applicable in respect of chargeable periods commencing on or after 1 January 2024. In the coming years, it will be interesting to see whether Irish Revenue will conduct many Joint Audits on TP issues with other EU Member States and the impact this will have on compliance activities of the TP audit branches and the other sectoral branches in the Large Corporates Division.  

Irish Competent Authority – TP Branch of International Tax Division

The TP Branch of Revenue’s International Tax Division acts as Competent Authority in respect of TP related MAP’s and bilateral APA’s. Ireland completed and agreed 16 TP MAP cases with Competent Authorities of other tax jurisdictions in 2023. 

In November 2023, Ireland received two MAP awards from the OECD, in recognition of efforts in resolving MAP cases in an efficient manner. In relation to TP cases, Ireland received an award together with Denmark, as jurisdictions that dealt the most efficiently with their joint MAP caseload during 2022.

As illustrated below Ireland also received 16 APA requests in 2023. While only 1 APA was concluded in this period, substantial progress was made on four other APAs, leading to their conclusion in early 2024.  

With the general upward trend in the number of MAP cases and APA requests to mitigate double taxation in respect of TP matters, the importance of continued investment and resourcing of the Irish Competent Authority is evident.

Exchange of Information

Irish Revenue exchanged Country-by-Country data with 62 other tax authorities in 2023. Irish Revenue also provided details in relation to 38 cross-border opinions with other tax authorities and 250 DAC6 returns on cross border arrangements with other EU Member States. Tax authorities, including Irish Revenue, use the information in these filings for risk assessment purposes.  

Other International Collaboration

Irish Revenue participates in the OECD’s International Compliance Assurance Programme and the EU’s European Trust and Co-operation Approach, both aimed at promoting multilateral engagements and voluntary tax compliance on a cooperative basis between MNEs and tax administrations in the jurisdictions in which they operate. TP issues are frequently a feature of these programmes.   

Deloitte Ireland LLP
April 2024