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Revenue-

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  • 16-11-2016 11:57pm
    #1
    Louiseflush18
    Registered Users Posts: 3 ✭


    Can anyone with experience with not paying tax to the Revenue please advise for a friend;
    They had a company that was liquidated in 2011. They fell behind in their tax payments - their own fault. They were taking cash from the business and during the boom spent foolishly / lavishly. When the company was liquidated they owed over €150,000 to the Revenue. She was lucky at the liquidation meeting her suppliers didn't press to have her house or property used to make the repayments - €70,000 was owed to them.
    But now she is divorced from her husband and he has the accounts which he is threatening to give to the Revenue. Yes her own fault but what I need to know is can he just hand them over to the Revenue? He wasn't listed on the company. Will the Revenue do anything- compared to what the big bankers owe its very little but still you can't be sure.
    Should she worry?
    TIA
    Tagged:


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    #2
    jackinthemix94
    Closed Accounts Posts: 293 ✭✭jackinthemix94


    €150k isn't nothing. That's probably enough to get your friend put in jail. Nobody on here can give advice for your friend, except to maybe get in contact with the Revenue before her ex husband can.


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    #3
    exaisle
    Registered Users Posts: 2,675 ✭✭✭exaisle


    jackinthemix94 wrote: »
    €150k isn't nothing. That's probably enough to get your friend put in jail.

    For what?


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    #4
    barneystinson
    Registered Users Posts: 4,683 ✭✭✭barneystinson


    exaisle wrote: »
    For what?

    Fraudulent evasion of tax, if there is sufficient evidence of the offence.

    It's not clear from the OP whether this 150k is declared liability owed, or is money that was creamed off the top and taken from the company without being declared.


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    #5
    seamus
    Registered Users Posts: 68,317 ✭✭✭✭seamus


    The friend would be better off coming clean and declaring the income to Revenue before anyone else has an opportunity to hold it over her.

    Ignore this "compared to the bankers" nonsense. As far as we know the bankers owe nothing to Revenue. And €150k is enough money for Revenue to make a serious case out of it.

    She needs to engage an accountant who can guide her through the appropriate process of declaring her underpayment to Revenue and arranging a repayment schedule.

    If the information comes from someone else as a "tip-off", then she could be in for far more serious consequences than a large tax bill.


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    #6
    Louiseflush18
    Registered Users Posts: 3 ✭Louiseflush18


    Thank you all for your advice- She said she took the money before it was registered or made up reasons why she was taking cash. I am not in business so I don't know exactly how that works.
    But the other issue is her business was a food franchise in a pub. I have read that once the Revenue get access to her accounts and find some impropriety they can then go after the owner of the pub- and anyone else who was connected to her business account. Is this true ?
    There would be some serious business people involved if this was true that would be very angry with her if they could be investigated by the Revenue too?

    Could this happen? She is really worried and frightened.

    Again thank you for all your advice, I really appreciate it!


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    #7
    exaisle
    Registered Users Posts: 2,675 ✭✭✭exaisle


    barneystinson wrote: »
    Fraudulent evasion of tax, if there is sufficient evidence of the offence.

    It's not clear from the OP whether this 150k is declared liability owed, or is money that was creamed off the top and taken from the company without being declared.

    Yes....that's my point....it was unclear whether there was fraudulent behaviour, although it seems from the OP's later post that you may be along the right lines.... I have to admit that up to that point, I was giving the OP's friend the benefit of the doubt.... :-)


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    #8
    appfry
    Registered Users Posts: 161 ✭✭appfry


    Louiseflush18 wrote: »
    Thank you all for your advice- She said she took the money before it was registered or made up reasons why she was taking cash. I am not in business so I don't know exactly how that works.
    But the other issue is her business was a food franchise in a pub. I have read that once the Revenue get access to her accounts and find some impropriety they can then go after the owner of the pub- and anyone else who was connected to her business account. Is this true ?
    There would be some serious business people involved if this was true that would be very angry with her if they could be investigated by the Revenue too?

    Could this happen? She is really worried and frightened.

    Again thank you for all your advice, I really appreciate it!

    Her husband is liable for what she owes too.


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    #9
    barneystinson
    Registered Users Posts: 4,683 ✭✭✭barneystinson


    appfry wrote: »
    Her husband is liable for what she owes too.

    How do you reckon that??


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    #10
    Galwaygirl55
    Registered Users Posts: 15 ✭Galwaygirl55


    Your friend needs to contact an experienced accountant pronto & approach Revenue as this is not something that can be ignored. I am wondering though how Revenue have not contacted them before now with regards to the closure of the company / tax due & so on.


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    #11
    Louiseflush18
    Registered Users Posts: 3 ✭Louiseflush18


    Thank you all again you have really been very helpful.
    Her husband seems to think because he wasn't named anywhere on the company records he is not liable for anything- which is true he had nothing to do with the business.
    She knows she did wrong- but...
    The Revenue didn't come after her because they didn't turn up to the liquidators meeting. The liquidator told her if t hey did she would have been in serious trouble.
    But her husband found a loophole where they can still go after her up to 7 years later.

    It's a terrible situation and she is sorry but I agree with you its best she contact the Revenue herself.

    Thank you all so much!


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    #12
    appfry
    Registered Users Posts: 161 ✭✭appfry


    barneystinson wrote: »
    How do you reckon that??

    From the post it sounds like they were married at the time of the shenanigans.


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    #13
    Galwaygirl55
    Registered Users Posts: 15 ✭Galwaygirl55


    Her ex husband is ill informed, there is no 7 year loop hole. If Revenue suspect fraud they can go back as far as they want which is why she needs to sort this asap. Your friend needs to go to an accountant, that is vital. Then she needs to approach Revenue when she has all of her ducks in a row, knows exactly what she owes them & has a plan as to how she will settle the bill.


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    #14
    J.Ryan
    Registered Users Posts: 474 ✭✭J.Ryan


    Louiseflush18 wrote: »
    Can anyone with experience with not paying tax to the Revenue please advise for a friend;
    They had a company that was liquidated in 2011. They fell behind in their tax payments - their own fault. They were taking cash from the business and during the boom spent foolishly / lavishly. When the company was liquidated they owed over €150,000 to the Revenue. She was lucky at the liquidation meeting her suppliers didn't press to have her house or property used to make the repayments - €70,000 was owed to them.
    But now she is divorced from her husband and he has the accounts which he is threatening to give to the Revenue. Yes her own fault but what I need to know is can he just hand them over to the Revenue? He wasn't listed on the company. Will the Revenue do anything- compared to what the big bankers owe its very little but still you can't be sure.
    Should she worry?
    TIA

    If the tax was owed by company then she should be ok, once she filed and paid her own personal taxes.

    The liquidator should have filed reports at this stage, to both CRO and ODCE and would have taken high court action to restrict your friend as a director if they found something was wrong.

    If you want to PM me a few more details feel free.


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