PAYE audit

[pat12345678]

Hi everyone. Just wondering would PAYE get a tax audit ?

 

[messyleo]

Yes

 

[pat12345678]

Is it common ?

 

[Castlelyons]

I was audited recently in relation to tax return request I made for AVC payment. It came through My Enquiries in revenue.ie as follows..

'Audit/compliance. You have been selected for a Paye check for the Tax year 2023.
In this regard, please see the attached correspondence for your attention.
The requested documentation can be uploaded as an attachment through MyEnquiries.'

They only requested pension certificate in this case.
A friend of mine was audited around 6 years ago, they requested all their medical expenses receipts.

 

[relax carry on]

Paye employees are dealt with under the same compliance intervention framework as anyone else. So subject to all levels of intervention.

https://www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf

 

[cally1990]

Yes they can

 

[ClubMan]

Is it common ?

Not in my experience but I don't know what the stats are. Maybe they're available from some Revenue report? I was half expecting to be audited (as a PAYE taxpayer) for a few different (non-contiguous years) when I had medical expenses claims in the tens of thousands but nothing was ever queried. I would assume that some audits are random but more are based on profiling. But, again, I've no hard evidence for that...

 

[Dr Strangelove]

Revenue don’t publish statistics to my knowledge.

They do carry out audit of taxpayers on a risk basis. And the risk of underpayment is extremely low for someone whose sole income is a €50k PAYE wage.

I would imagine there is much more bang for the buck in for example audit of large VAT-paying firms, people with lots of investment income, MNCs engaged in transfer pricing, etc.

 

[T McGibney]

...when I had medical expenses claims in the tens of thousands but nothing was ever queried...

...And the risk of underpayment is extremely low for someone whose sole income is a €50k PAYE wage.

I would imagine there is much more bang for the buck in for example audit of large VAT-paying firms, people with lots of investment income, MNCs engaged in transfer pricing, etc.

@ClubMan's point is on the contrary spot-on. A five-figure medical expenses claim is an obvious fraud risk (I know of at least one historic case where such a fraud was perpetrated and detected.) and Revenue if they're doing their job properly should be looking for receipts in such cases.

 

[Dr Strangelove]

@tmcgibney

In your years of practice have you ever known of anyone with only PAYE income to be subject to audit?

Assume someone not claiming more than employee and personal tax credits.