Revenue Non-collection decisions / Write-Off

share_bear

Hi,

Just a query about a friend whos husband died recently - and is not computer literate.

Husband was working and receiving state pension contributory, with an allowance for dependent spouse. They declared this correctly but in 2009 Revenue suddenly flipped from applying the correct tax treatment to an incorrect one, giving several years of double the correct tax credit allowance due (treating as two separate pensions instead of a single pension with an allowance).

Revenue are offering to write this off as there are no cashing savings, i.e no probabte taken out as bank savings were way below the threshold, and wife has only widows pension now. The amount is less than 7,000 Euro. There is the family home however, and husband and wife owned as Joint tennants.

My friend is concerned though that it could come back when she dies in the form of the original amount, plus interest and penalties, against her property. I don't know what to tell her.

Do revenue persue written off debts or will this be the end of it for their family?

Thanks

thesimpsons

Despite the fact that errors in tax are ultimately the responsibility of the tax payer, in this case if Revenue are willing to do a write off, just get this is writing and there should be no come back. Revenue does regularly come to agreements regarding tax underpayments so looks like they are holding their hand up on this one.