Tax risks and Revenue audits

Revenue audits in their different guises for both individual and corporate taxpayers are on the increase.

Their processes are typically detailed and time-consuming and can result in significant tax costs.

Revenue audits fall into three categories:

 

1.   Non-Audit Compliance Interventions

Interventions that fall under this heading include; Assurance checks, Aspect queries and Profile interviews.

Where a taxpayer has been notified by Revenue of such interventions  "Unprompted Qualifying Disclosure" is available to the taxpayer.

This ensures that any interest and penalties that Revenue may apply to any under-paid liability can be mitigated.

 

2. Revenue Audits

This arises where a taxpayer has been selected by Revenue for an Audit, and involves Revenue official the place of business – I think a word has been left out?

At this stage an Unprompted Qualifying Disclosure is not an option. The taxpayer may however make a "Prompted Qualifying Disclosure".

Again, this will help mitigate any interest and penalties arising and ensures that the taxpayers name will not appear on the Revenue's list of tax defaulters. It will also ensure that the Revenue will not initiate an investigation with a view to prosecution of the taxpayer in relation to the matter disclosed.                 

 

3. Revenue Investigation

An investigation will usually arise out of significant compliance errors or suspected fraudulent activity by the taxpayer.

At this stage of intervention the taxpayer may make a disclosure but is not entitled to make any type of Qualifying Disclosure.

At RSM we appreciate that a Revenue audit can be a particularly stressful time for our clients, which is why we are here to help.

Our tax consultants have spent years working at either a senior level within the Revenue Commissioners or settling enquiries with tax authorities.

We can liaise with Revenue Commissioners on your behalf and if necessary, negotiate an agreeable settlement in compliance with revenue’s code of practice.

We work with both individuals and companies to carry out pre-audit reviews, identify the issues that Revenue have raised and determine if there is a tax liability arising.

Where an individual or corporation has an existing tax advisor, we are available to perform a review that can offer an impartial second opinion of the technical tax issues identified during the course of the Revenue audit or investigation and to provide a tailor made solution.