Written answers
Thursday, 3 April 2008
Department of Finance
Tax Collection
5:00 pm
Leo 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]
Brian 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.
Penalty | Legislation | |
General | ||
Revenue Offences — various | On summary conviction, a fine of €3,000, imprisonment for a term not exceeding 12 months/ both | S 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 assessment | S 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 correct | S 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 | €630 | S 1055 TCA1997 |
Penalty for false statement made to obtain allowance | On summary conviction, €1,520 plus 25% of the difference between the tax paid and the tax payable if the submission/return furnished had been correct | S 1056 TCA1997 |
Fine for obstruction of officers in execution of duties | €125 | S 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 correct | S 1072 TCA1997 |
Penalties for failure to furnish particulars required to be supplied by new companies | €630 | S1073 TCA1997 |
Penalties for failure to give notice of liability to corporation tax | €630 Secretary of Company — a separate penalty of €125 | S 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, etc | As for Income Tax, Corporation Tax and Capital Gains Tax above | S 1077 TCA1997(S 1052, S 1053 and S 1054) |
Surcharge for late returns | 5% 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 relief | Restriction: 50% of reliefs & losses claimed, subject to max. restriction/reduction €158,715 | S 1085 TCA1997 |
Penalty | Legislation | |
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 cars | On summary conviction — a fine of €1,265/ imprisonment not exceeding 6 months/both | S 531(14)(a) TCA1997 |
Aids, abets, counsels or procures | On summary conviction — a fine of €1,265/ imprisonment not exceeding 6 months/both | S 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 Commissioners | On summary conviction — a fine of €1,265 | S 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 correct | S 531(16) TCA1997 applies S1052 TCA1997– see above |
Fails to deduct tax required to be deducted by the person under S531 TCA1997 | On summary conviction, a fine of €3,000, imprisonment for a term not exceeding 12 months/ both | S 1078(2)(hh)(i) & (ii)S 1078(3) TCA1997 |
Penalty | Legislation | |
VAT | ||
Failure to register | €5,000 | Section 26 (1) VAT Act 1972 |
Non compliance with flat-rate farmers provisions | €5,000 | Section 26 (1) VAT Act 1972 |
Failure to keep proper records | €5,000 | Section 26 (1) VAT Act 1972 |
Non compliance with Invoicing provisions | €5,000 | Section 26 (1) VAT Act 1972 |
Non compliance with Section 19 (Tax due and payable) provisions | €5,000 | Section 26 (1) VAT Act 1972 |
Non compliance with Section 19A (Statement of intra-Community supplies) provisions | €5,000 | Section 26 (1) VAT Act 1972 |
Failure to comply with regulations in regard to any of the above | €5,000 | Section 26 (1) VAT Act 1972 |
Issue of an invoice showing tax by an unregistered person | €5,000 | Section 26 (2) VAT Act 1972 |
Issue of a flat-rate invoice by a person other than a flat-rate farmer | €5,000 | Section 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 | €5,000 | Section 26 (3) VAT Act 1972 |
Wilful obstruction of an authorised officer of Revenue in exercising his/her function in regard to VAT | €5,000 | Section 26 (3A) VAT Act 1972 |
Obstruction of an authorised officer of Revenue to value or inspect a property | €5,000 | Section 26 (3AA) VAT Act 1972 |
Contravention of the security requirement specified in Section 23A | €5,000 in respect of each supply | Section 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 avoided | Section 27 (1) VAT Act 1972 |
Failure to submit a return as a result of fraud or negligence | €125 plus the amount of the tax due | Section 27 (1A) VAT Act 1972 |
If the person guilty of fraud is a body of persons eg a company or society | €1,265 | Section 27 (2) VAT Act 1972 |
If the person guilty of negligence is a body of persons eg a company or society |
Penalty | Legislation | |
Where a person improperly procures the importation of goods without payment of tax | €630 plus the amount of tax that should have been paid | Section 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 VAT | Section 27 (4A) VAT Act 1972 |
Excess of tax shown on an invoice | €125 plus the amount of the excess tax | Section 27 (5) VAT Act 1972 |
Assisting in making incorrect returns | €5,000 | Section 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 | €2,535 | S 58 CAT Consolidation Act 2003S1078 TCA 1997 |
Aiding and abetting delivery of an incorrect return | €1,265 | S 58 CAT Consolidation Act 2003 |
Discretionary Trusts Failure to deliver a Return | €1,265 or twice the tax payable, whichever is the lesser | S 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 duty | S 8 Stamps Acts |
Late stamping | €25 | S14 Stamps Acts |
VRT Summary Offences | S 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 |
Penalty | Legislation | |
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 imprisonment | S 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 imprisonment | S 139 FA 92 |
VRT Compromise Penalties | VRT Instruction Manual 6.5.4 | |
Vehicles in the State more than 10 days, but not more than 30 days | ||
Category A vehicles | 5% of OMSP — min €63 (£50) | |
Category B vehicles | 2.5% of OMSP — min €63 (£50) | |
Category C vehicles | 20% of VRT due | |
Vehicles in the State more than 30 days, but not more than 6 months | ||
Category A vehicles | 10% of OMSP — min €63 (£50) | |
Category B vehicles | 5% of OMSP — min €63 (£50) | |
Category C vehicles | file required for prosecution | |
Vehicles in the State over 6 months | ||
Penalty | ||
For Category C vehicles — file required for prosecution. |
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