Monday 19 February 2018

Bill can more than double if you don't own up

A TAX liability can more than double if a defaulter is contacted by the Revenue Commissioners, but doesn't admit to owing tax.

But coming forward before an investigation is formally started can help avoid thousands of euro in penalties.

While a daily interest rate of 0.0219pc is unavoidable - it is set out in legislation - penalties of up to 100pc of the liability can be imposed if the evasion was deliberate and there is no voluntary disclosure.

The Revenue Commissioners said that in the case of a €10,000 tax liability outstanding for two years, where no disclosure had been made, there had been no co-operation and the tax was evaded deliberately, the total settlement could amount to €22,398.

This comprises the original tax bill of €10,000, interest of 0.0219pc per day adding €2,398 and a maximum penalty of €10,000.

This would reduce to €13,398 if a disclosure was made and the taxpayer 

The analysis of settlements between 2009 and 2014 show that tax liabilities of €216.1m were incurred. Another €230.4m was added in interest and liabilities.

In 70pc of planned 
audits, a settlement was reached. In 30pc of random audits, the taxpayer had a liability.

Revenue said that anyone who approached Revenue with concerns about a liability would get a "better deal".

"The whole mantra of Revenue in recent years is making it as easy as possible to comply."

Irish Independent

Promoted Links

Today's news headlines, directly to your inbox every morning.

Promoted Links

Editor's Choice

Also in Irish News