Tax Advice for Revenue Audits, Compliance Interventions, Reviews, Investigations under all Tax Heads

Today, 20^th November 2015, the Revenue Commissioners published eBrief 112/15, the updated and new version of the Code of Practice for Revenue Audit and other Compliance Interventions.  It covers types of intervention, audit procedures, tax and duty defaults, tax avoidance, prosecution, etc.

The main changes include the following:

• Paragraph 1.10.5 states that a Revenue officer may, under Section 851A TCA 1997, disclose taxpayer information to a professional body to report a tax agent/practitioner in situations where the Revenue officer is satisfied that the work carried out by the agent/practitioner does not comply with the professional standards of that representative body.

• Paragraph 3.16 details the term “full cooperation.” There is a list of what constitutes “full cooperation” as well as what is deemed to be a lack or failure to cooperate fully with Revenue.  This revised Audit Code focuses on the importance of “full cooperation” in this paragraph as well as in the tables of penalties.

• New chapter 8 outlines tax law, Revenue policy and procedures for regularising tax and duty liabilities that arise due to certain types of tax avoidance. Paragraph 8.6 deals with the concept of a Qualifying Avoidance Disclosure.  This is separate and distinct from the information on disclosure as outlined in Chapter 3.

• Paragraph 5.4.1 of the Code has been revised to reflect the amendment in Finance Act 2014 in relation to the Surcharge for Late Submission of Returns (Income Tax, Corporation Tax and Capital Gains Tax). It states “Section 1084 also provides that the filing, on time, of an incorrect return, either carelessly or deliberately, is deemed to be late filing.”

• Inclusion of Legislation for Tax Avoidance Surcharge in Appendix III. It states that under Section 811D TCA 1997 “Where a ‘tax avoidance surcharge’ is not agreed or an agreed ‘tax avoidance surcharge’ is not paid, a relevant court will make a determination regarding liability to a ‘tax avoidance surcharge’. While the surcharge applied by Section 811D TCA 1997 is not a penalty it is collected as a penalty.”

• In cases where compliance intervention notices have been given but have not been settled before the 20th November 2015, the taxpayer has the option of choosing whether the settlement be made under the terms of the 2015 Code of Practice for Revenue Audit and other Compliance Interventions or the Code of Practice for Revenue Audit and other Compliance Interventions of 14th August 2014.

For further information, please click:https://www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-audit-2015.pdf

What can we do for you?

Revenue Compliance Interventions, Audits and Investigations arise mainly due to inaccuracies and inconsistencies in taxpayers’ submissions.  An automated process can also randomly select individuals and businesses in a small number of cases.  They can be costly and may result in publication on the Revenue’s Tax Defaulters list or even prosecution.  We offer a pre-audit review or compliance check as well as full and comprehensive support throughout the entire Audit process.  Our aim is to assist in minimizing the consequences of any tax underpayments and to achieve the best possible outcome.

For further information, please contact us on queries@accountsadvicecentre.ie

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.