Revenue are changing their code of practice in relation to the correction of errors on submitted tax returns. From 1st May 2017 onward, any errors (or omissions) made in income tax returns that relate to offshore matters cannot be declared or amended without Revenue involvement.
Offshore matters are things like:
- Offshore bank accounts
- Income earned outside the State
- Property situated outside the State
As most people are probably aware, revenue receive financial information on Irish taxpayers from Irish banks and financial institutions.
Revenue have now entered into an agreement with 100 countries to automatically exchange bank and other financial information about Irish residents who hold financial or other assets in these countries.
From 1st May 2017 this will come into effect and from that date onward taxpayers will no longer be able to make a qualifying disclosure which relates “directly or indirectly to an offshore matter in respect of which Irish tax is payable”. The effect of this will be that taxpayers who do not have their tax affairs up to date in relation to offshore matters will face interest and penalties on any tax liabilities and (most likely) a Revenue Audit.
So anyone with any offshore matters listed above should make sure they have the tax affairs relating to these up to date before the 1st May deadline.