Income Tax bill from 04

ghosttown

Hello all, advice please. I lost my job in April this year, and looked to sort out a tax rebate for last year, as I had never claimed tax relief or medical. Was told by revenue had €3.4K due to me. Then they asked for a Form 11 for 2005 and 2006, years in which I was 'between' jobs and worked for various companies. Never signed on though, always paid tax under advice. They were happy with the forms which took me 2 months to get all the info together. Then before paying they asked for a 2004 assesment. Easy enough I thought as I only had one employer (I was a director of the company, it closed in 05) - and all tax was paid to my knowledge.. Today I get a letter asking for €1150 before they can proceed. Seemingly I paid €22 short, the rest is in surcharge for late submission !! How was I to know I was €22 short, I paid €11,300 in tax.
So question is, will I have to pay €1150 first in order to get the revenue to release the €3400 ? Seems excessive for €22 I could never have known about..... any / all advice appreciated. Thanks

gdael

Now you can see how revenue will absolutely screw you even if they think you only owe €20.
Im beginning to think its their policy to wait for several years so as they can pile on the charges.
You should go to a financial advisor and get them to deal with revenue for you. Revenue will just walk all over you if you try to do it yourself.

dbran

gdael wrote: »

Now you can see how revenue will absolutely screw you even if they think you only owe €20.
Im beginning to think its their policy to wait for several years so as they can pile on the charges.
You should go to a financial advisor and get them to deal with revenue for you. Revenue will just walk all over you if you try to do it yourself.

Hi

You should appeal the late filing surcharge on the grounds that you have been a compliant tax payer in all the years to date. You were not aware of your filing liability as you thought that it had all been dealt with by PAYE and otherwise there is no significant liability owing to the revenue. It is a once off oversite and it will not happen again.

I have been successful in getting this surcharge waived in such circumstances.

Best of luck

Dbran

ghosttown

Thanks for the above advice. I went in person and appealed, offered to have it taken off the rebate if necessary. It's 'gone upstairs' for review.........will let you know how i get on. Fingers crossed I see something before Xmas !!

misspiggy40

Interested in the outcome of this. Keep us posted.

ghosttown

Ok, so the results of the appeal are in. They reviewed at my request, and brought the €22 underpayment down to €19.20, therefore bringing the 'fine' from €1,150 to €988 !!!
So now I 'only' owe them 988.00............. looks as though they haven't really shown any leniency on the fact that I was unaware of this until 2 weeks ago... looks like another visit in is in order.

dbran

yep think so.... maybe because it not an accountant appealing?

Mr. Incognito

I would bring this to an accountant or your local TD- This is disgraceful behaviour and I'm saying that as a professional with many years dealing with the Revenue.

Applying a surchage on a 20 Euro underpayment is ridiculous. Totally out of order. If you get a decent accountant I'm sure he can find another 20 euro in unclaimed credits that would negate this ridiculous surcharge.

clarkey1980

Mr. Incognito wrote: »

I would bring this to an accountant or your local TD- This is disgraceful behaviour and I'm saying that as a professional with many years dealing with the Revenue.

Applying a surchage on a 20 Euro underpayment is ridiculous. Totally out of order. If you get a decent accountant I'm sure he can find another 20 euro in unclaimed credits that would negate this ridiculous surcharge.

I'd say the surcharge is based on the fact that he was a proprietary director and as a result the surcharge is calculated on his liability before PAYE paid is taken into account.

ghosttown

Possibly, but still fighting... they now say overpaid by 220 in 2005, so they're deducting this, but that still leaves me owing 770. And the rebate for last year is on hold until I get the liquidator of the company I worked for to do me a P60 !
But I got the name of a person to whom I can appeal.
They also have not yet reviewed the 06 submission.
Very frustrating, back to letter writing.........

Mr. Incognito

I'd say the surcharge is based on the fact that he was a proprietary director and as a result the surcharge is calculated on his liability before PAYE paid is taken into account.

I remeber looking this up in the legislation about a year ago and the section that charges a surcharge expressly mentions that PAYE paid is to be taken into account before the surcharge is applied-

OP I'm up the walls busy at the moment but PM me the district and details and I'll see if I can sort this out- totally ridiculous behavior.

My first advice would be to re-file the year that the underpayment arises and claim any unused credits which will negate the 20 euro underpayment and subsequent nonsense surcharge.

The surcharge is applied electronically but the local inspector should have the cop on to remove it.

Here is the Revenue Internal Guidelines which outlines complaints procedures

http://www.revenue.ie/en/about/foi/s16/income-tax-capital-gains-tax-and-corporation-tax/part-38/38-04-03.pdf

Appendix 6 outlines that you are to be dealt with in a way that minimises costs. I would quote this to whoever you are dealing with on the phone in light of the silly demands they have made so far. Sadly most inspectors I have dealt with are not too familiar with it's contents.

dbran

Hi Mr Incognito

clarkey1980 is right.

If you do a search of the revenue site for SP - IT/1/93 it says that in the case of a proprietory director, the surcharge on the late return is levied without credit being given for PAYE credit ie not on the net amount.

Kind Regards

Dbran