The issue of unpaid taxes has long been a contentious issue in Ireland, with many individuals and businesses either intentionally or unintentionally failing to pay what they owe. However, Tánaiste Micheál Martin has recently voiced his support for a measure that would see the public naming of those who do not pay their fair share. This move has sparked a heated debate, with some arguing that it is an invasion of privacy, while others maintain that it is necessary in order to tackle tax evasion and ensure that everyone contributes their share to the country’s finances. In this article, we will examine the pros and cons of public naming of tax evaders and explore its potential impact on Ireland’s tax system.
Tánaiste Micheál Martin has made a statement in support of the public naming of people who do not pay their tax. This comes as Revenue evaluates the impact of an EU decision last month, which ruled that Hungarian tax authorities breached the privacy of a businessman whose name and home address were listed on a tax defaulters list. The Irish Government is expected to review the EU decision and consider whether a change to Irish laws is necessary.
The publication of a list of defaulters is one of Revenue’s most potent tools in deterring non-payment of taxes. The list is published every three months by the Revenue Commissioners, aiming to help ensure that people fully pay their taxes. However, the EU’s latest decision brings new questions about the privacy of those alongside the effectiveness of the list as a deterrent.
Finance Minister Michael McGrath has reportedly explained that Revenue is exploring the implications of the recent ruling on Irish legislation. This could result in a revision of the rules for naming and shaming tax defaulters in Ireland.
Responding to the latest development, Mr Martin said, “There are many penalties for non-compliance, and one of those is the public naming of people who do not pay their tax and I support that. But also, of course, the biggest penalty is the interest and financial penalties that go with breaching of tax regulations, that’s fundamentally where it gets the hardest.” It is clear that the Government is committed to the fight against non-payments of taxes and its commitment towards fair taxation.
The EU ruling, indeed, raises concerns over the privacy of those listed on the defaulters’ list, and whether it breaches an individual’s human rights, providing a new case to amend legal provisions. Whilst it remains to be seen what impact this ruling will have in Ireland, the Irish Government is expected to closely examine it in detail before reaching a conclusion.
It is common for authorities to publically name tax defaulters who choose not to pay their taxes in full, a strategy employed in many European countries. The practice can lead to delayed repayments, financial hardships and reputational damage. However, in some cases, it also leads to privacy violations as demonstrated in the latest EU decision. Therefore, it is essential that any necessary changes to the law work in favour of the tax authorities without infringing on an individual’s personal rights.
In 2020, 3,500 taxpayers were listed on the Irish defaulters’ list, with the highest settlement amount of €5.5m. Thus, the publication of the list is fundamental to ensure that people who fall behind on their taxes are held accountable for their actions. However, it is hoped that the Irish Government will strike a balance that safeguards personal privacy and also effectively deters people from not paying their taxes.
In conclusion, the Irish Government is facing a challenge to reconcile the benefits of naming and shaming those who default on their taxes with human rights concerns. The EU’s recent decision on the Hungarian case is urging Irish law to rectify what it sees as a violation of privacy, and it will be interesting to see the impact this has on the transparency of the Irish authorities’ approach. Nonetheless, it is expected that the Irish Government will take necessary steps to ensure that the public interest in deterring tax-defaulters is protected without infringing on privacy rights.
