New penalty for unpaid tax
Sunday, November 23, 2008 By Julie Burke
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Last Thursday’s Finance Bill introduced a new penalty regime that will apply in all cases where there has been an underpayment of tax, whether innocently or intentionally.
The manner in which any settlement is reached with the Revenue is governed by the Code of Practice for Revenue Auditors 2002.
In reaching a settlement with the Revenue, a taxpayer is required to pay a penalty of up to 100 per cent of the unpaid tax.
The level of penalty is usually determined by the following: &the category of tax default. &the level of cooperation provided by the taxpayer.
Whether or not a ‘qualifying disclosure’ is made by the taxpayer. Since the introduction of the European Convention on Human Rights into law in Ireland in 2003, concern has been raised by the Irish Taxation Institute and many practitioners, regarding the legal basis for penalties being recovered by the Revenue from the estates of deceased persons.