How far can revenue go back?

reform14a

If a sole trader (farmer) only has to store his accounts and receipts for 7 years, how far can revenue go back? Can they go back more than 7 years? How does one deal with this, as getting details of activities beyond 7 years is hard? I will see an accoutant but am wondering.

Kristopherus

7 yrs afaik.

reform14a

Despite Being retired more than 7 years, revenue want to ask me about my tax affairs. So, they must be going back more than 7 years.

barneystinson

reform14a wrote: »

Despite Being retired more than 7 years, revenue want to ask me about my tax affairs. So, they must be going back more than 7 years.

There's no limit to how far back they can go, if there is evidence of serious evasion. (Besides, despite being retired from their trade, a person can still have substantial current income, from investments, rental property etc...)

thesimpsons

they recently came on to me looking for payment of something they claimed was outstanding since 1998 !!!! After much letters and conversations, i finally convinced them I was right and they were wrong . Without my copies of correspondence from 1998 I doubt I would have been able to prove my innocence. They were so bloody arogant that I owed the outstanding money and not a sign of any kind of an apology for the stress & loss of sleep while I was trying to sort it all out.

Mountjoy Mugger

It's a bit rich nonetheless. You can only claim for four years in arrears, yet they can go ad infinitum.

barneystinson

Mountjoy Mugger wrote: »

It's a bit rich nonetheless. You can only claim for four years in arrears, yet they can go ad infinitum.

It is a self-assessment system though, so surely 4 years should be long enough to get your own return correct? The limit is there to incentivise timely claims, sure otherwise you'd end up with people looking to make claims back to 1950!!

Or are you saying that if someone has deliberately defrauded the state should they get a free pass after 4 years?

nompere

Mountjoy Mugger wrote: »

It's a bit rich nonetheless. You can only claim for four years in arrears, yet they can go ad infinitum.

That's not a fair statement.

If you make a complete and accurate return ("full and true" according to the legislation) then Revenue may only raise an assessment within the same 4 year period from the end of the tax year in which the return is made.

And it does happen. Many years ago, when the time limit for raising an assessment was 10 years, Revenue did forget to raise the assessment before it went out of time. They did raise it late, and I sent it back saying it was barred. They asked, slightly wistfully, if my client felt like paying the tax anyway! We declined their kind offer.

Legend100

was involved in a revenue audit not too long ago and they went back as far as 1991....!!

Mountjoy Mugger

barneystinson wrote: »

Or are you saying that if someone has deliberately defrauded the state should they get a free pass after 4 years?

Why on earth would I say that?

I'm referring to Revenue looking for receipts 8 or 9 years after relief has been sought and given and then threatening action when receipts are no longer available.

Time for change

reform14a wrote: »

Despite Being retired more than 7 years, revenue want to ask me about my tax affairs. So, they must be going back more than 7 years.

Revenue are a joke, they owe me money going back ten years but they will only pay me for the last four of those years, basically they're saying tough after that, even though it was completely their fault from an oversight on their side that led to me being owed big money. What a joke, except i'm not laughing. Going to at least take this to the ombudsman.

Actually, as i fully intend to fight this to the bitter end, has anybody any suggestions on a good solicitor who will take them on on a commission basis? or does anybody have any advice? thanks.