Irish Revenue Commissioners issued the list of tax defaulters for the first quarter of 2013.  This list is not exclusive to business owners, there are non-business people on it too, although most them are businesses.  In this day and age, it is important for all businesses to be aware of the fact that the Revenue are carrying out audits and checking on businesses for non payment of taxes due.  Therefore, for your own sake keep tax compliant or at least communicate with them before they find you.  That way, your name will not appear on the list.  You can download the two lists in both PDF and Excel formats at the end of this article.

In fact, Revenue is recruiting Administrative Officers at the moment to work in audits and compliance.

Also remember that as a business owner, it is your responsibility to keep proper records and to file them for seven years.  But bear in mind that Revenue can go back further if they wish, but you can’t.

The published settlements only reflect a portion of all Revenue audits and investigations concluded in the 3-month period to 31 March 2013. Settlements are only published when the extensive voluntary disclosure options are not availed of and the default is as a result of careless or deliberate behaviour.

A total of 2,020 Revenue audit and investigations together with 14,417 Risk Management Interventions (Aspect Queries & Profile Interviews) were settled in the period 1 January 2013 to 31 March 2013 resulting in yield of €153 million.

There are two parts to the list and it includes people who

Where a taxpayer has, in advance of any Revenue Enquiry, voluntarily furnished complete information relating to undisclosed tax liabilities, and paid the tax and interest due, (made a qualifying disclosure of tax defaults), settlements or penalty determinations are not published. A qualifying disclosure may be made at the start of a Revenue Audit and publication will be avoided.

Calculation of Penalties

Penalties, where applied in settlements, are calculated by reference to the appropriate category of default. The categories of default are

The level of penalty may be further reduced having regard to the level of cooperation provided by the taxpayer once the default is uncovered.

Deliberate Behaviour involves either a breach of a tax obligation with indicators consistent with intent on the part of the taxpayer or a breach that cannot be explained solely by carelessness.

Careless Behaviour involves lack of due care, which results in the incorrect declaration of tax liabilities by a taxpayer, or which results in the making of incorrect repayment claims.

In situations where a qualifying disclosure of tax defaults, as provided for in legislation, has not been made by a taxpayer, penalties levied range between 15% and 100% depending on the category of default and whether or not the taxpayer has cooperated with Revenue in the course of enquiries.

Settlements Published

In the 3-month period to 31 March 2013, 126 tax defaulters were published. The settlements, in these cases total €20.53 million.

In the 3-month period to 31st March 2013, 126 tax defaulters were published. The settlements, in these cases total €20.53 million.

Of the 126 published cases:

Some Settlements include

Court cases

205 cases went to court, which resulted in over €600k in fines or other penalties, including custodial sentences.  These included: