Tax Issues - Advice needed

W

worried78

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So the previous letters came and went and I ignored them and now Im looking at a letter from the Revenue Solicitor. I have 2 weeks to lodge my returns for a few years worth of trading. If I fail to comply a summons will be issued against me in respect of each outstanding return.

I work as a sole trader in an industry where very few people pay tax. My hand was forced a few years ago to register when a contractor wanted a Tax Clearance Certificate from me and so with much hesistance I registered.


What is my next move? Accountant to clear this mess? Solicitor?

Should I contact the revenue and say Im no longer trading? How much do they actually know?

I dont know where to start on this one.

Has anyone here been in a similar situation and what did you do?
 
Re: In trouble with the taxman

worried78 said:
So the previous letters came and went and I ignored them
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What previous letters?
and now Im looking at a letter from the Revenue Solicitor. I have 2 weeks to lodge my returns for a few years worth of trading. If I fail to comply a summons will be issued against me in respect of each outstanding return.

I work as a sole trader in an industry where very few people pay tax. My hand was forced a few years ago to register when a contractor wanted a Tax Clearance Certificate from me and so with much hesistance I registered.
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Doubt that you'll receive much sympathy around here for possibly evading tax in the past and only reluctantly registering.
What is my next move? Accountant to clear this mess? Solicitor?
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Probably one or both.
Should I contact the revenue and say Im no longer trading? How much do they actually know?

I dont know where to start on this one.
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Start by facing up to and paying your outstanding liabilities maybe?
 
Re: In trouble with the taxman

ClubMan said:
What previous letters?
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Well previous letter. Singular. That was from the tax inspector, this seems far more serious in that its from the tax solicitor.
 
You need an accountant obviously to do your returns and who has experience dealing with the revenue in these circumstances

They will be able to advise you whether you need a solictor

If you're saying you've been trading for a few years paying no tax then you are in trouble
As the revenue are on to the case I wouldn't compound matters by providing false information to them ,also an accountant will only take on your work on the assumption that all information is provided to them

If as you say very few people in your industry pay tax ,some of your colleagues could maybe explain to you and us how they manage this
 
worried78 said:
I work as a sole trader in an industry where very few people pay tax. My hand was forced a few years ago to register when a contractor wanted a Tax Clearance Certificate from me and so with much hesistance I registered.
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Reading this one gathers that if your hand wasn't "forced" then you wouldn't have faced your obligations either. As ClubMan said, face up to your obligations, get a professional and sort it out. By the way, the Revenue pensaties and interest will more than likely outweigh your perceived savings from doing nothing in the last few years.
 
I was just interested to know in what industry 'many' people don't pay tax!
Have you been keeping records at all? If so I guess you need an accountant to help you assess your liabilities in the first instance...
 
You need to deal with it. If it has passed to the solicitor you will need to talk to them. Also you will need to find out who in debt recovery in the Collector General's office is dealing with your case and find out if they are instructing the solicitor or of the solicitor has just been instructed to proceed.

You then need to prepare the returns. If you are getting an accountant to prepare them then get him to deal witht he revenue and the solicitor. If you contact them and tell them that you are preparing the returns you might not get much satisfaction.
If an accountants acting as your tax agent contacts them and tells them that he is in the process of preparing the outstanding returns then he is likely to be given more time if necessary.
 
Without advertising your own services are there any accountants you could recommend who would specialize in this kind of situation.
 
a pertinent question would be whether you are in a posiiton to pay off your liabilities or not....you don't say. Idid you build up assets/lifestyle on the basis that you did not pay tax? I know many who ducked and dived for years and finally had to face reality and p[ay their dues like the rest of us. First step is to get your head out of the sand and own up...contact an accountant, contact revenue, try and negotiate, if it's not too late.
 
Re: In trouble with the taxman

worried78 said:
Well previous letter. Singular. That was from the tax inspector, this seems far more serious in that its from the tax solicitor.
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My confusion arose because you referred to "the previous letters" as if you had mentioned them before on AAM even though this is your first post (at least under this new id).
 
Welfarite said:
a pertinent question would be whether you are in a posiiton to pay off your liabilities or not
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How do I know how much I owe? :confused: Even sole traders who pay tax are very flexible with what they really should be paying.
 
worried78 said:
Without advertising your own services are there any accountants you could recommend who would specialize in this kind of situation.
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THis is not a specialised situation. Accountants do come across back year cases. Its really just a matter of putting together the accounts ( hoping that you have the necessary backup records ) and filing them and the outstanding tax returns. So I'd try and make an appointment with someone ASAP. As other posters have said, you also need the funds to discharge the tax/prsi/levies/interest & penalties which will fall due. If you have any idea of the possible extent of the liability and if you do not have the funds, then Revenue will not be overly sympathetic given your ignoring your obligations so an advance call to check out borrowing possibilities might be advisable. Your accountant will advise more on this. incidentally, interest on any money borrowed to pay tax is not tax deductible as an expense.
 
Graham_07 said:
Its really just a matter of putting together the accounts ( hoping that you have the necessary backup records )
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I hate to come across as really naive but I have no such records. Ive been a bit foolish on this matter. How can they put together something for me without these records?
 
Do you have any records of money going into or out of your bank account? Or were you operating with just cash? I'd say if you were making a living out of it you need to start making a stab at approximate income over the past few years. You must remember specific jobs etc that you did and how much you received for them? How did you keep track of who owed you what? What about expenses? Surely you had to buy materials or services to carry out business..If so, do you have invoices etc?
 
No offence but I don't really believe that somebody who knowingly evaded their tax responsibilities until forced to regularise their situation and who then tried to ignore communications from Revenue about outstanding liabilities would be so naive as to simply overlook record keeping. I would be more inclined to believe that this person deliberately failed to keep such records or maybe even destroyed them. My advice remains the same and I cannot see any other option - talk to an accountant/tax advisor.
 
worried78 said:
I hate to come across as really naive but I have no such records. Ive been a bit foolish on this matter. How can they put together something for me without these records?
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Naive.........come on. You traded away deliberately avoiding registration until your hand was "forced" as you said. If you hadn;t received any Revenue letter.......would you be doing anything about it?

Basically, without records they can't easily prepare an accurate submission. They will need to try and put together a reconciliation based on your likely spend / lifestyle / asset movements over the years, what's called a Capital Reconciliation Account and try to arrive at annual income amounts from that. Then hope that will be acceptable to Revenue. Without records however Revenue have all the cards.

FInal 4 words on the matter. GET AN ACCOUNTANT NOW.
 
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