Sorting-out your taxes with the Revenue

Did you know that the Revenue’s customer service charter is based on six key principles?

  • Consistency, Equity & Confidentiality – in the administration of the law and in the use of taxpayer’s information.
  • Courtesy & Considerationto minimise disruption to the taxpayer in examining the risk. Revenue officers expect to be treated similarily.
  • Information & Assistance  will be given to the taxpayer and is expected by Revenue officials.
  • Presumption of Honesty – in dealings with the taxpayer and Revenue officials.
  • Compliance Costs – of meeting Revenue’s requirements will be kept to a minimum. The taxpayers is expected to implement recording systems to support accurate and timely compliance.
  • Complaints, Review & Appeal – there are comprehensive complaints and appeal procedures open to all taxpayers.

The Revenue has three types of compliance intervention with the taxpayer:

  1. Non-audit interventions – an enquiry either by telephone or letter but can also be an unannounced visit,
  2. an Audit OR
  3. an Investigation

In the case of an audit or investigation the taxpayer will receive 21 days notice however for non-audit-interventions notice is not always provided.

If you receive correspondence from the Revenue it is vital that you engage with the Revenue promptly. By doing so the taxpayer can benefit from reduced penalties should the enquiry result in additional tax liabilities. Furthermore in the case of a Revenue Audit, Revenue will allow an extension of 60 days to allow the taxpayer additional time to prepare.

You should meet and discuss the correspondence with your tax advisor or accountant. Your advisor should complete a thorough review of the area(s) covered in the Revenue correspondence to ascertain the extent of exposure, if any, to additional taxes.

The taxpayer at any stage up to the commencement of the Revenue Audit  may make a Qualifying Disclosure (QD), concerning additional taxes which may be due. The benefit of making a QD is that reduced penalties will apply however this is provided it is a complete disclosure of all matters concerning the taxes and periods referenced in the Revenue intervention. The QD must be accompanied with payment for the tax, duty and interest due otherwise it will not be accepted as meeting the conditions to avail of reduced penalties. However, Revenue may allow the taxpayer to agree a schedule of payments to meet the liabilities and to also avail of reduced penalties.

The extent of the co-operation of the taxpayer with Revenue is also taken into account in deciding on the penalties to apply.

Revenue’s focus in administering a self-assessment system is to discourage non-compliance and detect such practices. Revenue have a range of penalty measures available which include:

  • Interest on overdue tax.
  • Penalties for failing to file a return.
  • Surcharges for late filing of a return.
  • Penalties for understating taxes due.

If you have received correspondence from Revenue or are concerned about undeclared income speak to The Tax Man who will be happy to assist you.

Get In Touch

LinkedIn Auto Publish Powered By :