If Revenue suspects that a taxpayer has committed serious tax or duty evasion or a revenue offense, they might conduct a ‘Revenue Investigation’. Such investigations could lead to criminal prosecution.

Typically, Revenue will inform the taxpayer in writing that their tax or duty affairs are under investigation. However, in certain situations, investigations can be ongoing without any formal notification. These situations are specified in tax and duty legislation, and they include instances where Revenue has learned about the matter through their own investigations or through a statutory body or agency.

If a taxpayer receives a “Notification of a Level 3 Compliance Intervention – Revenue Investigation” letter, they can make a disclosure, but they won’t be able to benefit from certain things, such as the opportunity to make a ‘qualifying disclosure’ regarding the matter under investigation. They also won’t be able to avoid publication if the final settlement meets the publication criteria of section 1086A TCA 1997, and they won’t receive assurance from Revenue that the case won’t be referred for criminal prosecution.

During a Level 2 or Level 3 Intervention, if Revenue discovers new information suggesting serious tax or duty evasion or a revenue offense, they’ll inform the taxpayer in writing that a civil or criminal prosecution will be considered. The final decision about criminal prosecution lies with the Director of Public Prosecutions.