Tax Demand

T

tosullivan

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I was slapped with a €900 tax demand the other day for year 2007.

I called Revenue this morning and they said it was for a late payment charge on my prelim tax filed for year 2007 back in 2006. They are only getting to me now and saying the amount is so big as its that long since I owe them.

I have all the paperwork with evidence it was paid on time so I won't be paying the demand anyway, but is this normal that they take this long to inform you and when they do they can say all that time in between is charged per day for interest?
 
The late payment would be from the date it was due to the date it was paid. Not to the day they inform you ( unless still outstanding now ). You need to check what you paid and did it meet the criteria i.e. 100% of previous year or 90% of the actual year paid on time. If you met the criteria as to "amount paid" and "paid by date" then you should have no problem.
 
Graham_07 said:
The late payment would be from the date it was due to the date it was paid. Not to the day they inform you ( unless still outstanding now ). You need to check what you paid and did it meet the criteria i.e. 100% of previous year or 90% of the actual year paid on time. If you met the criteria as to "amount paid" and "paid by date" then you should have no problem.
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I definitely met the criteria and the disagreement is over the payment date.

The closing date for ROS that year was 17th of Nov. I paid on the 15th and they say I paid on the 18th. So they are saying I was 1 day late.

If that's the case then they are trying to charge me €911 for being 1 day late on €15k. Is this normal rates?

Luckily I kept everything and I have it in black & white that I paid on the 15th
 
The 15th Nov was Thursday. If you paid by EFT, when was the transaction credited to Revenue?
 
€900 does not add up on a payment of €15,000 even from 01/11 to 15/11. Was there a balance of previous year due in addition to the prelim payment that was paid all together on ROS ?
 
mathepac said:
The 15th Nov was Thursday. If you paid by EFT, when was the transaction credited to Revenue?
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I have a statement saying it was credited on the 15th

They say 18th but at least I have that statement

Graham_07 said:
€900 does not add up on a payment of €15,000 even from 01/11 to 15/11. Was there a balance of previous year due in addition to the prelim payment that was paid all together on ROS ?
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Nothing was outstanding. Would the penalty for 1 day late be really that much?

Also with ROS you get 2 extra weeks to pay online than if you file by post
 
If you have a statement showing it was credited on the 15th and all necessary amounts were paid to the correct value and on time then you should have no problem. You should speak with someone who you could send copy of the statement to. Get a specific name to correspond with that way they have to deal with it.
 
Graham_07 said:
If you have a statement showing it was credited on the 15th and all necessary amounts were paid to the correct value and on time then you should have no problem. You should speak with someone who you could send copy of the statement to. Get a specific name to correspond with that way they have to deal with it.
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they asked for a copy of the statement so I sent that in today...fingers crossed they get to the bottom of it
 
It makes you wonder how much tax goes uncollected, if the revenue's systems have to rely on your paper printout of their statement from four years ago, which seems to be missing from their own records. :p
 
The system is disjointed in places. I have a situation today with a client who got a stinker of a letter for €944 due from IT 2006. WHen I check ROS it turns out they paid a cheque twice and one credited to wrong year so ended up €944 overpaid in 2007 and €944 underpaid in 2006. File basically cancels out and registration balance on ROS is €0. However (a) they got this stinker of a letter for the 2006 underpayment but (b) no sign of anyone telling them they were overpaid in 2007. by the exact same amount. Now if I can check that out in 2 mins why can't they ???
 
Seems to me that if the payment is recorded as 18th then the return was also recorded as filed on the 18th. This would make the return late and a 5% penalty would have been levied. If you have the ROS printout showing the return filed and paid on the 15th you are in the clear. I never had this problem with the Revenue. Seems unusual.
 
ok, just got my a letter from my appeal and it looks like I filed the balance on my 2007 tax return a day late in Nov 08.

I was being charged a 5% penalty on the total amount even though I had paid 90% of the 2007 liability the year before. That bit annoyed me, but they said on looking at my previous years payments and that I had never been late before and since it was just 1 day over, they waived the penalty.

There was a mix up on the dates. I thought they were referring to 15th Nov 2007 for the prelim payment when in fact they were referring to the 18th Nov 08 for the balance payment.

Regardless, its a bit "IRISH" to charge the 5% penalty on the full amount, considering I had paid about €15k the year before towards that tax period
 
The 5% penalty was being late with the return not the payment. If these late filing penalties did not exist there would be chaos with people filing whenever they liked. there has to be some cut off.
 
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