Irish Revenue Commissioners issued the list of tax defaulters for the first quarter of 2013.  This list is not exclusive to business owners, there are non-business people on it too, although most them are businesses.  In this day and age, it is important for all businesses to be aware of the fact that the Revenue are carrying out audits and checking on businesses for non payment of taxes due.  Therefore, for your own sake keep tax compliant or at least communicate with them before they find you.  That way, your name will not appear on the list.  You can download the two lists in both PDF and Excel formats at the end of this article.

In fact, Revenue is recruiting Administrative Officers at the moment to work in audits and compliance.

Also remember that as a business owner, it is your responsibility to keep proper records and to file them for seven years.  But bear in mind that Revenue can go back further if they wish, but you can’t.

The published settlements only reflect a portion of all Revenue audits and investigations concluded in the 3-month period to 31 March 2013. Settlements are only published when the extensive voluntary disclosure options are not availed of and the default is as a result of careless or deliberate behaviour.

A total of 2,020 Revenue audit and investigations together with 14,417 Risk Management Interventions (Aspect Queries & Profile Interviews) were settled in the period 1 January 2013 to 31 March 2013 resulting in yield of €153 million.

There are two parts to the list and it includes people who

  • Failed to file a return
  • Filed an incorrect return
  • Sold tobacco illegally
  • Smuggled Cigarettes
  • Various excise and licensing offences
  • Accepted a specified sum in excess of €12,700/€30,000/€33,000 (depending on the periods in which the liabilities arise) in respect of any additional liability due for tax.
  • In the case of whom a penalty was determined by a court during the period 1 January 2013 to 31 March 2013.

Where a taxpayer has, in advance of any Revenue Enquiry, voluntarily furnished complete information relating to undisclosed tax liabilities, and paid the tax and interest due, (made a qualifying disclosure of tax defaults), settlements or penalty determinations are not published. A qualifying disclosure may be made at the start of a Revenue Audit and publication will be avoided.

Calculation of Penalties

Penalties, where applied in settlements, are calculated by reference to the appropriate category of default. The categories of default are

  • Deliberate Behaviour or
  • Careless Behaviour.

The level of penalty may be further reduced having regard to the level of cooperation provided by the taxpayer once the default is uncovered.

Deliberate Behaviour involves either a breach of a tax obligation with indicators consistent with intent on the part of the taxpayer or a breach that cannot be explained solely by carelessness.

Careless Behaviour involves lack of due care, which results in the incorrect declaration of tax liabilities by a taxpayer, or which results in the making of incorrect repayment claims.

In situations where a qualifying disclosure of tax defaults, as provided for in legislation, has not been made by a taxpayer, penalties levied range between 15% and 100% depending on the category of default and whether or not the taxpayer has cooperated with Revenue in the course of enquiries.

Settlements Published

In the 3-month period to 31 March 2013, 126 tax defaulters were published. The settlements, in these cases total €20.53 million.

In the 3-month period to 31st March 2013, 126 tax defaulters were published. The settlements, in these cases total €20.53 million.

Of the 126 published cases:

  • 56 were for amounts exceeding €100,000;
  • 6 exceeded €500,000 and
  • 2 exceeded €1,000,000.
  • 7 settlements totalling €3.07 million relate to Revenue investigations into Offshore Funds, and
  • 3 settlements totalling €0.26 million relate to Revenue’s Single Premium Insurance Products Investigation Cases.

Some Settlements include

  • Ji Rong Zheng, a supermarket owner with an address in 157 Parnell Street, Dublin 1, reached settlement of €1.59 million relating to under-declaration of VAT and income tax following a Revenue audit. 
  • Interestingly, another person named Run Zheng who is a PAYE employee, reached a settlement of over €100k for Underdeclaration of Income Tax.
  • The next highest settlement was Ivan Diver, a retired employee, for €1.511 million for Underdeclaration of Income Tax & Capital Gains Tax.
  • Amusement arcade owner, DUBLIN POOL & JUKE BOX CO.LTD. of 55-56 UPPER O'CONNELL ST., reached a settlement of €803k. It is one of gaming tycoon Richard Quirke's companies.  Mr Quirke is also behind the arcade Dr Quirkey's Good Time Emporium on O'Connell Street and was a major backer of plans to build a super-casino in Tipperary.
  • Alan Costello Builders Ltd. (in receivership) – Contarf-based building contractors — reached a settlement of €649k for underdeclaration of corporation tax, PAYE/PRSI, relevant contracts tax & VAT.
  • McStay Furniture Limited, Sarsfield Road, Wilton, Cork reached a settlement of nearly €603k for underdeclaration of VAT & PAYE/PRSI
  • Paul Kennedy – a farmer based in Kildimo in Co Limerick reached a settlement of nearly €620k for underdeclaration of income tax.
  • William Duggan, Handyman from Kerry Hill, Shanagolden, Co Limerick made a settlement of €47,259.36 in relation to the underdeclaration of income tax.
  • Ronald Byrne, a taxi driver from Ballyfermot, Dublin, made a €83,928 settlement arising from the undeclaration of income tax.
  • John Freeman, a taxi driver from Walkinstown, Dublin, made a settlement of €69,943, arising from the same tax. Both men, as taxi operators with an address at Lower Dorset Street, made a settlement of €338,696 arising from the underdeclaration of VAT and PAYE/PRSI.

Court cases

205 cases went to court, which resulted in over €600k in fines or other penalties, including custodial sentences.  These included:

  • 90 for failure to lodge income tax returns where the highest fine was on Kevin T Finn for €7500.
  • 8 for failure to lodge corporation tax returns and the largest fine for €15k on Able Security CCTV Ltd.
  • 2 for failure to lodge  VAT returns where Declan McGurrin, a blocklayer, received a suspended 2 year sentence.
  • 9 for failure to lodge VAT returns where Declan McGurrin received another suspended 2 year sentence.
  • 39 for misuse of marked mineral oil.
  • 1 for failure to furnish a settlement of affairs.
  • 12 for illegally selling cigarettes where Tomasz Gasior received a 9 month suspended sentence and Michael Corcoran, a plasterer, received 240 hours of community service.
  • 12 for cigarette smuggling where 6 people received sentences, both suspended and custodial.
  • 1 for counterfeit spirits. Gerard Frehill of Arklow.
  • 3 for failure to hold a current oil licence.
  • 16 for failure to hold a liquor licence
  • 2 for incorrect VAT returns where John Sheridan received 3 two year and a 1 year concurrent sentence with 240 hours community service in lieu.
  • 2 received 2 year custodial sentences for consenting or conniving to fail to furnish a CT return.
  • 3 received sentences of up to 2 years custodial for producing incorrect invoices.
  • John Sheridan again received the sentence above for also failing to keep proper books.
  • 2 for attempted importation of prohibited goods
  • Ignatious Ford received a 3 year sentence suspended for 6 years for evasion of excise duty on alcohol.
  • 1 for failing to hold a betting licence
  • 2 for obstructing officers.

 

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