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My employer is falsely deducting my tax

  • 09-06-2010 5:53pm
    #1
    nordiestar
    Registered Users, Registered Users 2 Posts: 80 ✭✭


    Hi Folks, can someone please please please try and help me out on this problem.
    I have suspected for a while that my company are deducting tax from my bonuses but not paying it to inland revenue.

    Lets say I earn X a year Basic.
    I then have a few different targets and different bonuses relating to them, IE 30,000 a month gets me 900, 35,000 a month gets me 1150 etc

    When I get paid bonuses it always states for eg, Comm = 1150 minus 25

    However, I recently got my P60, and for the last two years my earnings have been displayed as X.
    In other words, as far as the taxman is aware, I am earning my basic and no record of the tax paid on my commision.

    What are my rights here? I know I should confront my employers, but tbh am a little bit frightened about rocking the boat (have you looked at job websites recently?) not many other jobs out there!

    I think in 3 years I have missed my targets about 3 times. so I reckon that they have illegaly deducted near to 7 grand from me, and claimed they paid the taxman with it.

    Should I try and strike a deal with them, in return for not reporting them? (as in pay me five grand) or do i have nothing to gain by grassing them up?

    All help and advice appreciated.


Comments

  • #2
    johnlambe
    Registered Users, Registered Users 2 Posts: 114 ✭✭johnlambe


    That would mean that they aren't paying PRSI (employers' and employees') on the bonuses either, which could reduce any social welfare entitlements you have in future (if you ever need them), though I don't know how they are calculated.
    I think that's the only monetary difference it makes to you.

    I don't know what your legal situation would be if you get them to give you some of the wrongly deducted amount. You might then be complicit in the tax evasion.

    You could wait and only report them if and when you ever leave the company.
    Or, if there are others paid similarly to you, you could give the Revenue Commissioners an anonymous tip-off, so that they might audit the company.
    Of course, I don't know whether it would be discovered in an audit. They would have to already be either hiding your bonus payments in the accounts (as some other fictitious expense) or hiding an equivalent amount of income.


  • #3
    Andrews Tax Consulting
    Closed Accounts Posts: 8 ✭Andrews Tax Consulting


    Tricky situation. If you work for a small company they could suspect that you were the person that tipped off Revenue. Most audits are not random.

    I'm reading into your message that you have copies of correspondence from your employer stating your bonus and tax deductions, etc.

    I would bring the discrepancy to light and say that you have been asked by Revenue for a P60 to process a health expense claim. Say you cannot find your P60, provide them with your figure's and whatever backup info you have (except the incorrect P60) and ask for a "replacement" P60 to submit to Revenue.

    Derek
    http://www.andrewstax.ie


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