Revenue powers

Administration

The Revenue Commissioners are responsible for the administration of income tax, corporation tax and capital gains tax (s 849). Inspectors of taxes appointed by the Revenue are responsible for the local administration of the tax (s 852).

Anti-avoidance

If, as an Irish resident individual, you have power to enjoy income arising to a non-resident, which you have transferred to that non-resident, the income may be treated for tax purposes as your income (s 806).

If Revenue form the opinion that a tax avoidance transaction is wholly artificial, they may assess the tax that in their opinion has been underpaid (s 811).

Revenue may also potentially impose a 20% surcharge if they are successful in challenging a tax avoidance scheme. You may avoid such surcharge and interest by filing a protective notice (s 811A).

Information

If you are one of the following persons, you must file with your self-assessment return a third party return of information or payments made to:

(a) a property management agent (s 888),

(b) a business person who pays fees to a self-employed service provider (s 889),

(d) a bank that pays interest without deduction of tax (s 891),

(e) a nominee shareholder (s 892),

(f) a UCITS intermediary (s 893).

If your auditor becomes aware that you have committed a relevant offence, he must report the offence to you. He must then report the offence to the Revenue if you do not rectify the offence within six months of it being reported to you (s 1079).

Audit

You must keep records that will enable you to make a true tax return. This means you must keep a cash receipts book, a cheque payments book, a sales book, a purchases book, a register of assets and liabilities, and a record of asset acquisitions and disposals (s 886). Records may be stored electronically (s 887).

A Revenue inspector may inspect your PAYE records (s 903), relevant contracts tax records (s 904), and he may audit your general business records (s 905).

He may be accompanied by a member of An Garda Síochána (s 907).

He may require a financial institution to provide copies of bank statements (s 908).

He may require you to submit a statement of affairs (s 909).

He may check a third party return of information or payments made (s 899).

Revenue may take criminal proceedings against you if you deliberately and defiantly refuse to comply with tax laws by failing to pay tax or file returns (s 1078).

Collection

Tax

The Collector-General (s 851) is responsible for collection of income tax (s 961), corporation tax (s 974) and capital gains tax (s 976). If you do not pay your tax, he may enforce collection by:

(a) issuing a certificate to the appropriate sheriff or county registrar (s 962),

(b) suing for the tax as a civil debt in the District Court or Circuit (s 963) or High Court (s 966),

(d) issuing an attachment notice to one of your debtors (s 1002),

(e) requiring payment of arrears before issuing a tax clearance certificate (s 1094, 1095).

He is entitled to offset repayments between taxes (s 1006A) and to appropriate tax payments as he sees fit (s 1006B).

A court seizure order in respect of a Revenue debt takes priority over other debts (s 971). Unpaid relevant contracts tax and PAYE estimates (s 1000), and corporation tax (s 974), are preferential debts in company liquidation.

You may pay income tax, corporation tax or capital gains tax by donating a heritage item to a State-owned or State-funded gallery, library or museum (s 1003).

Interest

Interest on late income tax or corporation tax (s 1080) or capital gains tax (s 1083) accrues at the following daily rates for each day the tax remains unpaid:

(a) 0.0219% in respect of the period 1 July 2009 to the date of payment,

(b) 0.0273% in respect of the period 1 April 2005 – 30 June 2009,

(d) 0.041% in respect of the period 1 August 1978 – 31 March 1998.

Surcharge

You are liable to a 5% surcharge, which may not exceed €12,695, if your return is filed late, but within two months of the return filing date.

You are liable to a 10% surcharge, which may not exceed €63,485, if your return is filed more than two months after the return filing date (s 1084).