Audit interest reduction?

C

coletteR

Registered User
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Hi
Can anyone help? Partner has being audited and the interest and penalties amount to 10k, 22k is the actual tax bill so the total comes to 32k. This seems pretty hefty interest and penalties. Is there anyway we can get revenue to reduce the interest/penalties??
Thanks
 
What was the tax liability?

When did it arise? Did he make a voluntary disclosure?
 
Hi
The tax liability was 22k. Audit was 2011 and yes he made a voluntary disclosure regarding VAT which was 10k and then they found 'irregularities' of 12k!
Thanks
 
2011 audit in 2015 has it bee going on long???

The statutory interest is 10% per annum so that's 50% of the amount due.

€22,000 is a significant shortfall.
 
It is most unlikely that there is any way to force Revenue to reduce the penalties and interest. In fact Revenue often hold off on the full amount they could charge to use as a lever. For example treating undeclared income as gross when they could in fact treat it as net.

There may be scope for talking through the matter with the Revenue Inspector, they usually like a quiet life. Understand how the penalties were calculated, was a penalty applied to the declared VAT matter. Are they calculating Interest from the year end or mid year.

However penalties and interest at less than 50% of the actual tax due is not huge given the time scales involved. Penalties and interest can easily amount to the same again as the tax due. It may be that they are already being quite lenient with you.
 
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