Irish Revenue Announce Deadline For Voluntary Disclosure Initiative

by Jason Gorringe Tax, News.com, London

22 July 2008

The Irish Revenue has this week reminded the country's bigger banks and financial institutions that the official deadline for the voluntary disclosure of large undisclosed funds is the 15th September.

Under regulations introduced by Finance Minister Brian Lenihan on 28th May this year, banks and other financial institutions are required to provide Revenue with details of the names and addresses of account holders where interest in excess of EUR635 was paid.

For the years 2005 and 2006 banks, building societies and savings banks are required to report to Revenue on DIRT-liable accounts on or before 15th September 2008, and for the year 2007 the reporting deadline is 31st October 2008.

Taxpayers who had EUR100,000 or more in aggregate in these accounts (which included funds not previously declared for tax) at any time between 1st January 2005 and 31st December 2007 have until 15th September 2008 next to make a voluntary disclosure under an initiative announced by the Revenue Commissioners.

The Revenue has emphasised that the focus is on money which was undeclared for tax purposes and that this current initiative will affect a relatively small number of taxpayers.

Persons who have tax issues relating to monies on deposit and who wish to avail of the opportunity to make a voluntary disclosure will receive the following benefits:

• The penalty for underpaid tax will be substantially mitigated;
• Their name and settlement amount will not be published by Revenue in the quarterly list of tax defaulters in Iris Oifigiúil;
• Revenue will not initiate an investigation with a view to prosecution.

Taxpayers who are already under enquiry or who failed to disclose these accounts in a previous investigation are precluded from making a qualifying disclosure.

The deadline date for the submission of a notice of intention to make a voluntary disclosure is 15th September 2008 (coinciding with the first reporting deadline).

A full disclosure with all due tax, interest and penalties must be made by 15th January 2009.

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