Exchequer Returns to be revised as €100m wrongly classified
THE Department of Finance is to take the unusual step of issuing revised Exchequer Returns for last month after it was discovered that about €100m in collected tax was wrongly classified as VAT.
A spokesman for the department said the money should have gone into the income tax pot.
The Department said, however, that there is no effect on the overall tax take.
But it couldn’t shed any light on how the mistake was made. The Department was notified by the Central Bank.
It is understood the Central Bank discovered the error as part of its day-to-day management of government accounts
“The overall level of tax collected is unchanged,” a statement from the Central Bank said.
“In relation to March 2014, €101 million was classified as VAT which should have been classified as income tax.”
“The Department, the Revenue Commissioners and the Central Bank are currently examining the issue and a revised Exchequer statement will issue in due course.”
The Central Bank declined to comment beyond the Department’s statement.