Co-operative Compliance, which is also described in international tax literature as ‘Enhanced Relationship’ and “Horizontal Monitoring’, among other titles, is the creation and development of a relationship between the taxpayer and the tax administration based on trust and co-operation from both parties in order to achieve the highest level of voluntary tax compliance.
Co-operative Compliance (CCF) was introduced in the Large Cases Division (LCD) of Revenue, the Irish Tax and Customs administration, in 2005 with a view to managing the tax risks within the LCD case base more efficiently and effectively. It envisaged a new form of relationship between LCD and large businesses, one where both parties work together to achieve the highest possible level of compliance across the taxes for which particular businesses needed to account.
This cooperative model was then, and still is, increasingly becoming a feature of the relationship between large business and tax administrations across the world, reflecting the growing sense of a mutual interest in being as certain as possible about tax liabilities. It ensures greater clarity for taxpayers who enter the CCF as to the benefits that taxpayers will derive from being part of the framework and the advantages Revenue will derive from taxpayers in their dealings with LCD.
Trust & Compliance
