The clock is ticking as new Revenue clampdown means people could find themselves in a trouble if they don’t ensure their tax affairs are in order.
As and from 4th of May 2017, it will no longer be possible to obtain the benefits of a qualifying disclosure if matters included in the disclosure relate directly or indirectly to any of the following:
- an account held or situated in a country or territory outside Ireland;
- income or gains arising from a source, or accruing, in a country or territory outside Ireland;
- property situated in a country or territory outside Ireland.
The Revenue advises that all tax payers should review their position regarding offshore income and assets and make a qualifying disclosure before 1 May 2017, subject to the general rules and requirements for making such a disclosure as set out in the Code of Practice for Revenue Audit and other Compliance Interventions. It is essential that individuals or corporate entities with overseas assets take this opportunity to review their position even if they believe themselves to be compliant. Failing to satisfy these requirements can lead to an investigation from Revenue. Revenue have the power to refer certain tax offences to the DPP for criminal prosecution with Judges having the power to impose custodial sentences of up to 5 years and fines of up to €127,000 where a taxpayer is convicted on indictment for serious tax evasion. In making such a qualifying disclosure before the deadline of 1 May 2017, taxpayers can avail of reduced penalties, non-publication and reassurance that the matter will not be prosecuted.
If you would like to discuss the proposed changes please feel free to contact us.