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

An Irish resident individual who has power to enjoy income arising to a non-resident (e.g., an offshore company) may be assessed to tax on the income of that company (s 806).

Revenue may assess underpaid tax if in their opinion a tax avoidance transaction is wholly artificial (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

A taxpayer must file a third party return of 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),

(c) a commission agent (s 890),

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

(e) a nominee shareholder (s 892),

(f) a UCITS intermediary (s 893).

An auditor who becomes aware that a relevant offence has been committed must report the offence to the Revenue if you do not rectify the offence within six months (s 1079).

Audit

A taxpayer must keep records that will enable him to make a true tax return. This means – 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 PAYE records (s 903), relevant contracts tax records (s 904), and 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 a taxpayer who deliberately and defiantly refuses to comply with tax laws by failing to pay tax or file returns (s 1078).

Collection

Tax

The Collector-General (s 851) may enforce collection of unpaid tax 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),

(c) taking bankruptcy proceedings against you (s 999),

(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).

Revenue may offset repayments between taxes (s 1006A) and appropriate tax payments as they see 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.

Tax may also be paid by donating a heritage item to a State-owned or State-funded gallery, library or museum (s 1003).

Interest

Interest on late tax (s 1080) accrues at the following 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,

(c) 0.0322% in respect of the period 1 April 1998 – 31 March 2005,

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

Surcharge

A 5% surcharge, which may not exceed €12,695, applies where a return is filed late, but within two months of the return filing date.

A10% surcharge, which may not exceed €63,485, applies where a return is filed more than two months after the return filing date (s 1084).

Introduction to Income Tax

Income Tax rates

Benefit in Kind

Income Tax exemptions

Income Tax schedules

Income Tax reliefs

> Capital Allowances

Handling losses

> Double taxation

Self Assessment

Withholding taxes

Penalties

Appeals