ICAI reacts to new Revenue probe
[23 May 08]
(Friday, 23rd May 2008) The Revenue Commissioners has announced a new disclosure scheme relating to moneys held in Irish deposit accounts. Deposit holders are being given until 15 September next to declare any untaxed amounts which they had lodged in their deposit accounts. By so doing, Revenue will mitigate the tax penalties which can apply, and undertake not to publish the tax defaulters name. A disclosure will also mean that Revenue will not pursue the case for prosecution for tax evasion.
The new scheme is very similar to those which Revenue have operated in recent years for disclosure of untaxed money in Offshore Assets and Single Premium Insurance policies.
ICAI Director of Taxation Brian Keegan said “Revenue are focusing on untaxed money lodged in ordinary deposit accounts. They recently gained new powers to require the banks to provide the names and addresses of deposit holders. Revenue will be able to compare the information they already have from Returns of Income and the like with these bank details, to help them detect evasion. Before that happens, taxpayers are being given an opportunity to come forward”.
The initial focus of the Revenue investigation will be on deposits totalling more than €100,000. Mr Keegan however pointed out that from past experience of special investigations, Revenue could well revisit this amount in a second phase of the investigation.
“Tax evasion is unacceptable, and special investigations of this nature have an important part to play in eliminating evasion. However, there is always a cost to compliant taxpayers as they can unwittingly fall into the Revenue investigation criteria and become obliged to establish they have no tax issues. An example of this might be where a person has sold their house, deposited the money and a short time later spent it again on a new house. This could bring them within the scope of the investigation, as they would have had more than €100,000 on deposit.”
ICAI will work with Revenue on procedures to try to minimise the impact of the investigation on compliant taxpayers.
Contact Details
Contact Name :: Brian Keegan, ICAI Director of Taxation
Email Address ::
brian.keegan@icai.ie
Telephone :: +353 1 637 7347
Fax :: +353 1 668 0842
