Current Revenue Investigations
Submitted by bdoieadmin on Tue, 2010-11-16 17:39
As a result of recent tribunals, freeing up of Revenue staff as taxpayers increasingly use online services and the incentive to maximise tax revenues without increasing tax rates, the number and depth of investigations increases.
Current investigations:
Credit Unions Interest Reporting (Extension of Voluntary Disclosure Initiative)
Taxpayers who had €100,000 or more in aggregate in credit union accounts (which included funds not previously declared for tax) at any time between 1 January 2005 and 31 December 2008 have until 31 March 2010 next to make a voluntary disclosure under an initiative announced by the Revenue Commissioners. The deadline date for the submission of a full disclosure and payment of all due tax, interest and penalties is 31 March 2010.
Voluntary Disclosure Initiative – Deposit Interest Reporting
Taxpayers who had €100,000 or more in aggregate in DIRT liable deposit accounts (which included funds not previously declared for tax) at any time between 1 January 2005 and 31 December 2007 had until 15 September 2008 to make a voluntary disclosure to the Revenue Commissioners. Full disclosure with all tax due, interest and penalties must have been made by 15 January 2009. Revenue has since received names and address of account holders where interest in excess of €635 was paid for 2005, 2006 and 2007.
Life Assurance – Undisclosed Funds Invested in Life Assurance Products
In April 2005 Revenue launched an investigation to identify persons who invested untaxed funds in single premium insurance policies. Following on from an examination of the information received from the initial phase of the investigation Revenue have decided to look for further High Court Orders in respect of policies where the total amount invested was greater than or equal to €20,000 but less than €50,000. Policyholders with outstanding tax liabilities who receive a letter from an insurance company should be aware that the Revenue Commissioners notified all relevant insurance companies in a letter dated 8th June 2009 that Revenue are prepared to accept from defaulting taxpayers a full and complete disclosure in lieu of initiatiting any criminal proesecution.
Offshore Assets – Offshore Related Tax Defaults
The Offshore Assets Group is now investigating taxpayers who failed to come forward in the qualifying disclosure campaign during 2004. Revenue has, on foot of High Court Orders, obtained transaction information from financial institutions, which is assisting in identifying those individuals who held offshore accounts or financial products and who have not brought their tax affairs up to date. The Offshore Asset Group is currently issuing letters to these individuals inviting them to make contact with a view to regularising their tax affairs.
Trusts & Offshore Structures
The Revenue investigation of the tax treatment of property, assets and funds settled by persons on trusts and offshore structures commenced 1 September 2009. The investigation is focused on persons who have undeclared tax liabilities in respect of transfers and settlements of property, assets and funds to / on trusts and offshore structures, such as, foundations, establishments, trust enterprises and offshore companies or have tax issues in relation to profits or gains arising within, or disbursements out of, such trusts or structures.
Investigations can be stressful, focusing taxpayers’ attention away from the success of the business. At BDO we have a team of people who have many years experience working in this area.
Talk to us, contact a member of our Tax team.