Taxman

Matheson lawyer Aidan Fahy is chair of the Law Society’s Taxation Committee. Mary Hallissey conducts the audit

Qualified in 2004, Aidan Fahy joined the Taxation Committee in 2015 and is now chair.

The committee represents solicitors on matters of tax law and policy and provides advice and guidance on a range of policy, technical, and procedural tax issues.

It plays a critical role in making submissions to the Department of Finance and the Revenue Commissioners on both technical and policy matters, in its goal of shaping meaningful reforms.

“A fair and transparent tax system is essential to maintaining public trust and fostering voluntary compliance,” Aidan comments.

Help

Members of the committee serve as the voice of solicitors on the Tax Administration Liaison Committee (TALC), a collaborative forum involving Revenue and professional bodies such as the Law Society, the Irish Tax Institute, and the Consultative Committee of Accountancy Bodies – Ireland, an accountancy umbrella group.

Committee members also actively participate in the many subcommittees and working groups of TALC.

The Irish taxation system is both sophisticated and increasingly complex, Aidan says, and practitioners will tend to get both on-the-job and additional training.

Practitioners seek guidance from the committee on complex, tricky, or novel issues, Aidan notes.

Key issues for many solicitors include stamp duty, capital gains tax and capital acquisitions tax matters, as well as obtaining letters of no audit, and various tax clearances.

“Solicitors in larger firms may specialise in tax law and deal with these issues day-to-day,” Aidan explains. “But for many in general practice or smaller firms, these matters may come up less frequently. They often turn to the Taxation Committee for guidance.”

The committee meetings are a 60:40 mix of remote and in-person, with a drive to physically meet up at least twice a year. This hybrid model supports flexible working, reduces environmental impact, and facilitates participation by members nationwide.

Come together

More broadly, Aidan highlights the need to rebalance taxpayer rights and Revenue powers with respect to time limits for assessments.

There is an imbalance in the reciprocal rights and time limits that apply to taxpayers’ rights to reclaim overpaid tax, the committee believes. It wants a fair balance between Revenue powers and the right of taxpayers to certainty in their affairs.

According to Aidan, Revenue’s powers have expanded significantly in recent years, and court decisions have also tended to favour extended timelines for assessments and investigations.

“There’s a growing concern about the lack of certainty for taxpayers,” he explains. “We’re calling for clearer time limits within which Revenue can act, to ensure that matters can be brought to a conclusion and that taxpayers aren’t left in limbo indefinitely.”

The committee would also like to see enhancements to the participation exemption – to enhance Ireland’s attractiveness as a holding company location. This move would attract more business to Ireland, Aidan argues.

In its pre-budget submission to the Department of Finance, the committee also highlighted that it is past time for a review of the tax treatment of food and drink for staff, particularly given the move to dispersed workforces post-Covid.

There should be a move away from restrictive rules, and towards flexibility, particularly considering modern working patterns and geographic spread, the submission said.

A day in the life

The committee currently comprises 21 members, along with secretary Nora Ward, and members bring a broad spectrum of specialist expertise across the various tax heads.

Long-serving members with extensive experience help maintain strong working relationships with both Revenue and the Department of Finance, while also ensuring continuity.

The committee places a high value on technical expertise across relevant tax heads, willingness to engage meaningfully with the work, and commitment to regular attendance.

The committee currently reflects a well-balanced male/female mix in terms of expertise, career profile, and a large/ small firm mix.

Key activities and achievements of the committee in 2024/2025 include active engagement in TALC on issues such as the Base Erosion and Profit Shifting (BEPS) Project, indirect taxes, direct and capital taxes, audit, collection issues, and Residential Zoned Land Tax (RZLT).

The committee is also represented on the tax group of the Council of Bars and Law Societies of Europe (CCBE).

It monitors and reviews the e-stamping system, with ongoing consultation with Revenue, and provides commentary on finance bills and acts, as well as input on Revenue and Department of Finance consultations and on updates to Revenue’s tax and duty manuals.

The committee also publishes and updates practice notes through the Gazette, eZine, and online platforms. The very popular annual Tax Guide, published with the Gazette and on the Law Society website, is also the work of the committee.

Recent direct submissions to the Department of Finance have included:

• Tax treatment of interest in Ireland (January 2025),
• Proposed dividend-withholding tax-exemption for investment limited partnerships (June 2025), and
• Issues on implementation of RZLT.

The committee also collaborates with Law Society Professional Training on the design of tax updates and training events.

It also reviews legal professional privilege in the context of tax advice, particularly considering EU and international scrutiny of tax planning and professionals, and relevant CJEU case law.

The committee is also represented at the Department of Finance Business Tax Stakeholder Forum.

Now and then

Looking ahead, the committee will continue to focus on active and effective representation at TALC and CCBE, as well as ongoing contributions to tax policy and legislative development.

Pre-budget submissions and responses to consultations will continue to be an important part of the work, along with working on updated tax guides and practice notes. Aidan acknowledges that the tax system – though challenging – is central to the work of many solicitors.

The committee remains committed to providing support, engaging with policymakers, and ensuring that the solicitors’ profession is well-represented in the development of Irish tax law and practice.

Mary Hallissey is a journalist with the Law Society Gazette.

More information about the Taxation Committee is available on the Law Society website.