M
His basic salary is c. 35k gross per annum- and he saves it all! and 'odd jobs' are not major- maybe 30 euro/ p.w. doing gardens etc- not regular and nothing guaranteed! Just that this guy saves everything- still lives at home!
Unfortunately there's no Section in the Taxes Acts which permits an individual with an annual salary of €35,000 to earn an extra €1,560 per annum for doing "odd jobs".
Your friend's son could be on the hook for tax, PRSI, levies, penalties and interest in relation to his undeclared income and any penalties should more than likely be at the upper end of the scale (as this sounds like 'deliberate default' and any 'qualifying disclosure' made at this stage would be a 'prompted qualifying disclosure').
Your friend's son should consider quantifying his undeclared income and explore the option of making a 'prompted qualifying disclosure'.
I hardly expect that 55k accumulated over 5 years equates- from predominantly his paye job amounts to some big 'fraud' with Revenue!... Regardless of the outcome for this young man, I would envisage that max payable with levies/ penalties if anything will amount to less that 1 or 2k for the 5 years!
Would appear that Revenue have little or nothing to keep themselves occupied these days... so hence chasing cents!
I would say if Revenue are looking at a PAYE worker like this guy, it is primarily because of some kind of intelligence received in relation to him.
Friend's son at work today got a letter from Revenue investigating his savings- they want details of all interest paid from 2005 and details of how he accumulated money.
As for chasing cents, I'd hardly call 55k of possibly untaxed money sitting in a bank account "cents", would you? (If that was all untaxed income then it would mean a tax/interest/penalty bill of maybe 80-100k!)
I think you're over-reacting just a little. He's in his 30s, he's probably been working for 6 years, he's earning 35k a year and living at home so he probably has no living expenses other than socialising and holidays. At that rate, it wouldn't be hard to save several thousand a year.
Thank you all for feedback- a lot of info there. Not sure I will tell my friend- but it is certainly a useful insight. I expect at suggested that based on savings/ dirt tax that he received letter. He is not a tradesperson or anything exotic like that! But if he stated he got the monies from his family members- gifts- what would the implication be?
Isn't it possible that this relates to undeclared income from the interest on savings?
I realise DIRT is deducted by the savings institution, but any interest received after DIRT is deducted is also liable for income tax isn't it?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?