Irish Revenue Makes EUR2m Tax Error
The Irish Revenue has had to make a settlement of EUR2m with itself after Revenue Commissioners made the mistake of forgetting to tax the travel benefits they had given their own staff, it has emerged this week. The Revenue introduced a new benefits-in-kind (BIK) scheme for workers travelling
to and from work back in January of 2004. However, after an investigation into the tax treatment of its employees by
Irish tax authorities - which began in 2006 after questions were raised about
the way in which the scheme works - it has transpired that the Revenue has managed
to overlook the rules of its own system, subsequently racking up a tax liability
of approximately EUR2m. The investigation, which reviewed the BIK scheme from the time of its introduction
in 2004 to June of 2007, showed that the Revenue had failed to tax any of the
EUR1.7m worth of travel benefits given to employees using business vehicles
to travel into and out of work, nor had they taxed a further EUR0.3m given to
employees unable to use methods of public transport in certain locations when
working between the hours of 11pm and 8am. Also highlighted by the investigation was a case surrounding the travel expenses
incurred by a senior officer working for the Irish Prison Service who claimed
EUR24,117 worth of benefits in one year alone without being taxed. Concerns have now been voiced that a similar situation may arise, or may already have
arisen, with other public sector bodies or private companies. The Revenue have now settled the matter by making a voluntary disclosure. .
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