2006 Surcharge

killiank

I am a director of a company but I dont hold any share capital in this company. I filed my 2006 tax return about 2 months ago & have gotten a notice of assessment that has a surcharge of 10% of the tax payable for the year. Now all my income comes through the company that I am a director of & I do not owe any money it was all paid through the PAYE system. I have often filed 2 or3 years worth of tax returns at the same time & it was never an issue before. The 10% was not calculated on the amount of tax that was due but rather on the total tax before adjusting for what was paid via PAYE system.

Is there anything I can do here? Its a very substantial penalty.

dbran

Hi Killiank

Yes. You can appeal the assessment as it is not due.

If you hold less then 15% of the share capital of the company you are not a proprietary director and therefore not subject to self assessment or the late filing surcharge.

Kind Regards


dbran

killiank

Thanks dbran.

I will be writing to them so to dispute it. I might be able to celebrate christmas after all.

seco

I agree with other respondant where you do not hold more than 15% of issued share capital in employer company, you are not a proprietory director for income tax purposes, however, if you have any other non PAYE income such as rental income, dividends, interest earned etc., there would be an obligation to submit an income tax return by 31 October annually. If you are only in receipt of PAYE income, contact Revenue by return on basis that you are not a proprietory director and not subject to surcharge. It may be simply that entries have been made in incorrect boxes on your tax return.

Mr. Incognito

These penalties are applied automatically via computer.

Ring the district and ask for the inspector- explain the situation and he should be able to remove it or clarify the situation