Revenue to clamp down on pubs charging entry fees on St Stephen’s Night
Pub owners being advised to account for “every euro”
Revenue has warned pub owners planning on charging entry fees on St Stephen’s Night that they must pay tax on the money they receive.
St Stephen’s Night is one of the most profitable nights of the years for pubs in Ireland, but Revenue is insisting that “every euro” must be declared.
“Income derived from the operation of a public house, including any entrance fees charged, is subject to tax and the amount of taxable income is computed and charged to tax in the normal manner,” a Revenue spokeswoman told Independent.ie.
“Non-compliance can result in the application of interest and penalties, publication in the list of tax defaulters and even prosecution.”
In terms of overseeing the filing of tax returns, Revenue is relying on the “honesty” of pub owners.
“Revenue presumes honesty and it is a fundamental principle of self-assessment tax systems that returns filed by compliant taxpayers are accepted as the basis for computing tax liabilities.
“The vast majority of taxpayers are compliant, pay the right amount of tax and are aware of their obligations”.
While the vast majority of taxpayers adhere to the rules, Revenue will also be using data analytics to ensure people are complying.
“Our risk analysis and case profiling encompasses all sources of information and assesses emerging risks to identify, target and confront suspected non-compliance, including individuals or businesses who may be under-declaring tax liabilities.”
The Vintners Federation of Ireland says that publicans charging customers for entry into their premises on St Stephen’s Night is “not a widespread practice” in Irish pubs.
Due to being one of the busiest nights of the year, clubs and pubs tend to increase their entry fees.
The VFI says it is up to each individual publican to decide on the prices they charge.