Written answers

Thursday, 3 April 2008

5:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 50: To ask the Tánaiste and Minister for Finance the fines and penalties open to the Revenue Commissioners; if he is satisfied that the Revenue Commissioners are making full use of same; and if he will make a statement on the matter. [12616/08]

Photo of Brian CowenBrian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that there are provisions for a wide range of fines and penalties which can be imposed in particular situations for failure to comply with Revenue law and that they pursue penalties/fines in appropriate cases either through court proceedings or as part of a settlement. The circumstances in which these can be applied are set down in various legislative provisions. The recovery of fines and penalties is an integral part of the overall enforcement process by Revenue. The level and range of fines and penalties is reviewed in the context of the annual Budget and Finance Bill process and I am satisfied that the Revenue Commissioners are making full use of the deterrents at their disposal to enable them to carry out all of their functions effectively.

A complete inventory of all of the fines and penalties available to the Revenue Commissioners could not be compiled within the timeframe for issue of a reply to the Deputy's question. However the main fines and penalties applied are listed in the Appendix attached.

PenaltyLegislation
General
Revenue Offences — variousOn summary conviction, a fine of €3,000, imprisonment for a term not exceeding 12 months/ bothS 1078 TCA1997
Income Tax, Corporation Tax & Capital Gains Tax
Penalties for failure to make certain returns, etc€950/€1,520 if failure continues after the end of the year of assessmentS 1052 TCA1997
Penalty for fraudulently or negligently making incorrect returns, etc€125 plus the difference between the tax paid and the tax payable if the submission/return furnished had been correctS 1053 TCA1997
Increased penalties in case of body of persons€950/€1,520 if failure continues after the end of the year of assessment.S 1054 TCA1997
Penalty for assisting in making incorrect returns, etc€630S 1055 TCA1997
Penalty for false statement made to obtain allowanceOn summary conviction, €1,520 plus 25% of the difference between the tax paid and the tax payable if the submission/return furnished had been correctS 1056 TCA1997
Fine for obstruction of officers in execution of duties€125S 1057 TCA1997
Penalties for failure to make certain returns (Corporation Tax)€630 / €1,265 if failure continues after the end of the year of assessment.S 1071 TCA1997
Penalties for fraudulently or negligently making incorrect returns, etc€630 / in case of fraud €1,265 plus twice the amount of the difference between the tax paid and the tax payable if the submission/return furnished had been correctS 1072 TCA1997
Penalties for failure to furnish particulars required to be supplied by new companies€630S1073 TCA1997
Penalties for failure to give notice of liability to corporation tax€630 Secretary of Company — a separate penalty of €125S 1074 TCA1997
Penalties for failure to furnish certain information and for incorrect information€125 In the case of a company, €630.S 1075 TCA1997
Penalties for failure to make returns, etc and for fraudulently or negligently making incorrect returns, etcAs for Income Tax, Corporation Tax and Capital Gains Tax aboveS 1077 TCA1997(S 1052, S 1053 and S 1054)
Surcharge for late returns5% of the tax due, subject to a max. amount €12,695, if return furnished within 2 months of due date.S 1084 TCA1997
Corporation tax — late returns: restriction of certain claims for reliefRestriction: 50% of reliefs & losses claimed, subject to max. restriction/reduction €158,715S 1085 TCA1997
PenaltyLegislation
Relevant Contracts Tax
Makes a false statement or furnishes any documents that are false in order to obtain a certificate of authorisation or a relevant payments carsOn summary conviction — a fine of €1,265/ imprisonment not exceeding 6 months/bothS 531(14)(a) TCA1997
Aids, abets, counsels or procuresOn summary conviction — a fine of €1,265/ imprisonment not exceeding 6 months/bothS 531(14)(b) TCA1997
Failures in relation to relevant payments cards, deduction of tax, making declarations, keeping/producing records/documents, delivering declarations to the Revenue CommissionersOn summary conviction — a fine of €1,265S 531(14)(c) TCA1997
Penalty for fraudulently or negligently making incorrect returns, etc€125 plus the difference between the tax paid and the tax payable if the submission/return furnished had been correctS 531(16) TCA1997 applies S1052 TCA1997– see above
Fails to deduct tax required to be deducted by the person under S531 TCA1997On summary conviction, a fine of €3,000, imprisonment for a term not exceeding 12 months/ bothS 1078(2)(hh)(i) & (ii)S 1078(3) TCA1997
PenaltyLegislation
VAT
Failure to register€5,000Section 26 (1) VAT Act 1972
Non compliance with flat-rate farmers provisions€5,000Section 26 (1) VAT Act 1972
Failure to keep proper records€5,000Section 26 (1) VAT Act 1972
Non compliance with Invoicing provisions€5,000Section 26 (1) VAT Act 1972
Non compliance with Section 19 (Tax due and payable) provisions€5,000Section 26 (1) VAT Act 1972
Non compliance with Section 19A (Statement of intra-Community supplies) provisions€5,000Section 26 (1) VAT Act 1972
Failure to comply with regulations in regard to any of the above€5,000Section 26 (1) VAT Act 1972
Issue of an invoice showing tax by an unregistered person€5,000Section 26 (2) VAT Act 1972
Issue of a flat-rate invoice by a person other than a flat-rate farmer€5,000Section 26 (2A) VAT Act 1972
The secretary of a company or society where that company or society incurs a penalty under any of the above is liable for a separate penalty€5,000Section 26 (3) VAT Act 1972
Wilful obstruction of an authorised officer of Revenue in exercising his/her function in regard to VAT€5,000Section 26 (3A) VAT Act 1972
Obstruction of an authorised officer of Revenue to value or inspect a property€5,000Section 26 (3AA) VAT Act 1972
Contravention of the security requirement specified in Section 23A€5,000 in respect of each supplySection 26 (3B) VAT Act 1972
Furnish an incorrect return fraudulently or negligently or use of incorrect invoices, credit notes or other documents in connection with the tax€125 plus the amount of the tax avoidedSection 27 (1) VAT Act 1972
Failure to submit a return as a result of fraud or negligence€125 plus the amount of the tax dueSection 27 (1A) VAT Act 1972
If the person guilty of fraud is a body of persons eg a company or society€1,265Section 27 (2) VAT Act 1972
If the person guilty of negligence is a body of persons eg a company or society
PenaltyLegislation
Where a person improperly procures the importation of goods without payment of tax€630 plus the amount of tax that should have been paidSection 27 (4) VAT Act 1972
Use of cancelled registration number to acquire goods from another MS at the zero rate€630 plus an amount equal to the VAT which would have been payable if the supply had been subject to Irish VATSection 27 (4A) VAT Act 1972
Excess of tax shown on an invoice€125 plus the amount of the excess taxSection 27 (5) VAT Act 1972
Assisting in making incorrect returns€5,000Section 28 VAT Act 1972
Capital Acquisitions Tax
Fails to comply/contravenes any requirement of S 46 of the CAT Consolidated Act 2003 — Delivery of Returns€2,535S 58 CAT Consolidation Act 2003S1078 TCA 1997
Aiding and abetting delivery of an incorrect return€1,265S 58 CAT Consolidation Act 2003
Discretionary Trusts Failure to deliver a Return€1,265 or twice the tax payable, whichever is the lesserS 58 CAT Consolidation Act 2003
Stamp Duty
Fraud/neglect in the execution of an instrument€1,265 plus the amount of the difference between the correct and incorrect dutyS 8 Stamps Acts
Late stamping€25S14 Stamps Acts
VRT Summary OffencesS 139 FA 92
False declaration€5,000
Possession of a vehicle not displaying an identification mark as prescribed€5,000
Use of an unregistered vehicle in a public place€5,000
Mutilation or defacing a Registration Certificate€5,000
Failure to make a declaration in the prescribed manner€5,000
Failure to comply with Regulations made under Section 141 of the Finance Act 1992€5,000
PenaltyLegislation
Possession of an unregistered vehicle by an unauthorised person€5,000
Possession of a vehicle outside the conditions laid out in Section 134 of the Finance Act 1992 (Permanent Reliefs)€5,000
To issue or be in a possession of a false registration certificate€5,000
Failure to pay VRT due on an unregistered vehicle€5,000
Failure to pay VRT due on a converted vehicle€5,000
Possession of a converted vehicle where additional VRT due has not been paid€5,000
VRT Summary/Indictable Offences
Evasion or taking of steps for the purposes of the evasion of vehicle registration tax shall be guilty of an offence and be liable on summary conviction of a penalty of €1,265 and/or imprisonment for a term not exceeding 6 months.€5,000 and/or max 6 months imprisonmentS 139 FA 92
On conviction on indictment under the above offence — 3 times the VRT concerned or €12,695, whichever is the greater and/or imprisonment for a term not exceeding 5 years.€12,695 and/or max 5 years imprisonmentS 139 FA 92
VRT Compromise PenaltiesVRT Instruction Manual 6.5.4
Vehicles in the State more than 10 days, but not more than 30 days
Category A vehicles5% of OMSP — min €63 (£50)
Category B vehicles2.5% of OMSP — min €63 (£50)
Category C vehicles20% of VRT due
Vehicles in the State more than 30 days, but not more than 6 months
Category A vehicles10% of OMSP — min €63 (£50)
Category B vehicles5% of OMSP — min €63 (£50)
Category C vehiclesfile required for prosecution
Vehicles in the State over 6 months
Penalty
For Category C vehicles — file required for prosecution.

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