My mum is a pensioner well into her seventies.
She has income through contributory pension, share income, some work etc and pays tax on all this income. She pays tax at the lower rate.
She literally does not have a clue when it comes to anything financial as my father always handled that side of things (he passed away 11 years ago).
However, she also had a lump sum in a credit union share account (circa 80,000) and so received dividend income. She had always thought that tax was deducted at source same as with bank deposits and so it was not included in her tax return.
A flyer from the credit union earlier in the year brought this issue to our (or rather my) attention and the account was converted into a DIRT paying account.
As far as I am aware this should have been declared and tax would have been due on roughly 20% or the dividend. Assuming a dividend of 2% per annum, that would leave her with a liability of €320 per year in the past. I do not think withholding tax is applied.
If she was to make a declaration to the revenue now going back 10 years am I correct in saying would possibly be faced with major penalties, charges etc? What should she do? Our accountant is extremely straight (quite rightly) and I know he will opt for the declaration route if mentioned to him.