Tax audit

whatever76

Guilty of head in the sand syndrome with tax man and now they are coming to get me !!
Got stock awards not a lot now mind average 1000 dollars a year I say but never declared them after the 30 day limit when they exercise , haven't sold them so they just lying there - going back from 2008 - 2011 I say. I know the day was looming but you know the way stupidly avoiding hoping it would go away ! How strict are revenue on penalties. I accept I need to pay what owed but are they strict on penalties ? dreading this now - not a lot of money in grand scheme of things for revenue but a lot to me .. such is life I know etc just with what you see going one with politicians, bankers etc just irks me when I pay more than enough PAYE tax already

barneystinson

whatever76 wrote: »

Guilty of head in the sand syndrome with tax man and now they are coming to get me !!
Got stock awards not a lot now mind average 1000 dollars a year I say but never declared them after the 30 day limit when they exercise , haven't sold them so they just lying there - going back from 2008 - 2011 I say. I know the day was looming but you know the way stupidly avoiding hoping it would go away ! How strict are revenue on penalties. I accept I need to pay what owed but are they strict on penalties ? dreading this now - not a lot of money in grand scheme of things for revenue but a lot to me .. such is life I know etc just with what you see going one with politicians, bankers etc just irks me when I pay more than enough PAYE tax already

First thing's first; have you actually received a letter that says "notification of revenue audit"?

whatever76

yep - received a letter stating my tax affairs are suitable for "review" and require further clarifications so its inevitable !!
My worry really is how strict are they on penalties and I guess how best to approach it with revenue .

Bobby1984

if you have a good accountant who can calculate the amount actually owed and you make a disclosure before they actually audit you, then the penalties could be less than 3% per annum and interest possibly 10% per annum.
You need to be upfront about it and disclose everything and you might get some reduction in the interest (probably not the penalty). It would also look good if you could clear the tax you actually owe or else set up a payment plan with Revenue.

Revenue can be easy to deal with once you play ball with them

whatever76

thanks for you advice - I defo will play ball with them as no point hiding it all can be accessed anyway so time to face the music ( Must source an accountant ! ) - Just hope they don't penalise me hard - fingers crossed !!
I'll just be selling what I have to pay the bill which is the killer !

Alan Shore

Bobby1984 wrote: »

You need to be upfront about it and disclose everything and you might get some reduction in the interest (probably not the penalty).

The interest on late payment of tax is not negotiable, the penalty is.

whatever76

Right so audit over .... deep breaths - 5 years back dated tax submit !! Man it is some complex system - they really take the fun out of any benefits from working hard !

Anyway I have paid what I owe and now I have been informed that I need to pay the penalty - nearing 3k that apparently I can discuss how best to pay this ... am I best just getting them to take this at source now for the next 12 months rather than paying full sum - cant being myself to give another lump sum so rather it go from source ?!!

mozattack

whatever76 wrote: »

Right so audit over .... deep breaths - 5 years back dated tax submit !! Man it is some complex system - they really take the fun out of any benefits from working hard !

Anyway I have paid what I owe and now I have been informed that I need to pay the penalty - nearing 3k that apparently I can discuss how best to pay this ... am I best just getting them to take this at source now for the next 12 months rather than paying full sum - cant being myself to give another lump sum so rather it go from source ?!!

Penalty was €3k!

Either the liability was savage or you failed to make a qualifying disclosure?

whatever76

Sorry not sure what you mean ?

Alan Shore

In most cases unless you fail to declare anything the penalty is 10% or less.

So €3,000 would indicate a €30,000 tax bill at 10%. But as you made no returns I'd imagine a 30% may have been imposed?

whatever76

yea that's what I am unsure of so am getting clarification now on how the sum was calculated !

Richard571

Maybe what you describe as the penalty is in fact the original tax payable on the stock options + a smaller penalty? If you were only receiving c1k a year, a 3k penalty does seem excessive

whatever76

just as well I queried this there was a mis-calculation on what owed so final figure owing was well reduced ! I had to pay 3% penalty in end

mozattack

whatever76 wrote: »

just as well I queried this there was a mis-calculation on what owed so final figure owing was well reduced ! I had to pay 3% penalty in end

Thought as much.... I will send my invoice in the post