Jim Daly (Cork South West, Fine Gael)
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105. To ask the Minister for Finance the discretion afforded by law to the Revenue Commissioners to forgo the collection of penalties applied to individuals who made a late tax return, less than one year and due to illness, and who are certified by a medical report as being incapacitated at the time, noting the person has discharged all sums due of the actual tax; and if he will make a statement on the matter. [8301/16]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that section 1084 of the Taxes Consolidation Act 1997 (the Act) imposes a surcharge on any taxpayer, whether an individual or a corporate, for the late submission of a tax return. The surcharge applies to the full amount of the tax due irrespective of payments of preliminary tax and is graded by reference to the length of the delay in filing. Section 1084 also places an upper limit on the amount of the surcharge.

Where a return of income is delivered less than two months after the return filing date, the surcharge is 5% of the tax liability, subject to a maximum of €12,695.

Where a return of income is delivered two months or more after the return filing date, the surcharge applied is 10% of the tax liability, subject to a maximum of €63,485.

The surcharge has been in existence since 1995 and is an established and important driver of timely compliance with the return filing self-assessment system.

While there is no explicit provision in the Act for mitigation of a surcharge, section 864 places the taxes comprehended by the Act under the care and management of the Revenue Commissioners. I am advised that Revenue accepts that, in the case of normally compliant taxpayers, exceptional circumstances may occasionally arise which could justify the waiving of the surcharge, and are prepared to consider representations from taxpayers, or their agents, in this regard.

If the Deputy's question relates to a particular taxpayer I would advise that the individual in question contact his or her local tax office and outline the circumstances which gave rise to the late filing of the relevant tax return.