# €1000 surcharge on €44 liability



## Brouhahaha (12 Apr 2012)

Hi,

I am a PAYE employee who has to file a form 11 tax return due to being director of a non-trading company. I file the form 11s with zero returns (other than PAYE) to reflect this.

I applied for rebate of some health expenses for 2010 and was informed revenue didn't have a form 11 registered for 2010 so I (re)filed it with the health expenses included.

Rather than refund the health expenses they have calculated I have a €44 liability and are applying a late filing fee of about €1000.

I'm not sure how:

a) I am liable €44 after all income went through PAYE (multi-national employer) and a tax rebate was applied for - but obviously not concerned by this now

b) I somehow owe €1000 surcharge when I am tax compliant bar revenue not having a return on file. If the surcharge is meant to be 10% of tax liability and my tax (bar this €44 liability) has been payed through PAYE how can the €1000 surcharge be justified?

What are my chances of a written appeal of this surcharge being successful?

Thanks in advance,
B.


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## Leaky1 (12 Apr 2012)

The late filing surcharge is calculated on the liability after giving credit for paye tax paid but before giving credit for preliminary tax. However in the case of proprietary directors there is a provision to calculate the surcharge on the liability before giving credit for paye paid - this seems to be what has happened to you.

Are you a proprietary director (15% or greater)? 

If you are tax compliant (payments & returns) your local tax office might agree to waive the surcharge - put it in writing to them.


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## Brouhahaha (12 Apr 2012)

Yes I am a proprietary director and am compliant, will try the appeal...


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## capnhand (12 Apr 2012)

Hi

Also if you are only a proprietary director of a dormant company that has not traded for 3 years then you are not subject to self assessment and you should have completed Form 12. If the only income that you have is from non proprietary directorships ie paye income then this is not subject to self assessment and would not be subject to the late filing surcharge.

capnhand


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## bazermc (12 Apr 2012)

Brouhahaha said:


> I am a PAYE employee who has to file a form 11 tax return due to being director of a non-trading company.


 
Are you sure that is correct and you do actually have to file a return.  I thought self assessment obligations were based on level of non PAYE income


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## Brouhahaha (12 Apr 2012)

As I am a proprietory director I believe I need to submit Form 11E.

The link below shows the obligation and indicates how the surcharge should apply.

[broken link removed]

However it mentions exclusions for the provisions which I believe applies to my situation: 

3. EXCLUSIONS IN THE 1992 ACT
3.1 The 1992 Act excludes certain types of directors from the new provisions, for example, directors of shelf companies, *directors of genuinely dormant companies* and others who take up temporary directorships in the period prior to a company commencing activity.
3.2 These examples are covered by the exceptions listed in the Act. The exceptions are directors of a body corporate which during the three years ending on 5 April in the year of assessment -
•
was not entitled to any assets other than cash on hands, or a sum of money on deposit within the meaning of Section 230 Finance Act, 1992, not exceeding £100, and
•
*did not carry on a trade, business or other activity including the making of investments and*
•
did not pay charges on income within the meaning of Section 10 of the Corporation Tax Act, 1976.


I will base my appeal on this.

Thanks,
B


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## Brouhahaha (13 Jun 2012)

Brouhahaha said:


> The exceptions are directors of a body corporate which during the three years ending on 5 April in the year of assessment -



As a follow up I wasn't able to appeal this fine as even though the company is dormant for the last three years it was not dormant for the 3 years prior to the year of assessment.


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## seambie (9 Aug 2012)

Appealing revenue surcharges.....

I have recently submitted returns for 2006, 2007, 2008, 2009 and 2010 on Revenue Online.

I am a proprietory director of 2 companies but have received no income from either of these companies.

I have paid significant tax through the PAYE system from 2006 to present day. The only income that did not go through the PAYE system during this period was rental income on which there is a (small) tax laibility for 2006, 2009 and 2010.

I have received a revenue assessment of income detailing late surcharges for late filing of returns. 

How likely is it that I will be appeal these surcharges?

My local tax office is in Meath.


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## MeathCommute (10 Aug 2012)

Seambie, you need to set up your own thread instead of hitching a lift on others


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## seambie (13 Aug 2012)

Sorry MeathCommute....will do


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