Revenue Investigations Yield Millions
Small businesses across the country will be surprised at the recent increase in revenue investigations following the publication of new government figures.
The latest Iris Oifigiuil publication has highlighted the amount of money yielded by the government through tax investigations. The headline-grabbing figures, which show fines running into the millions, could serve as encouragement for firms to improve their bookkeeping practices.
In the last three months of 2010, Revenue Commissioners raised more than €116 million through its audit and investigation actions, the report revealed. As well as receiving fines and being forced to pay interest on outstanding taxes, business run the risk of being named and shamed by the government.
This latest edition of the study has published the details of 62 tax defaulters. The businesses included on the list eventually made settlements with the Revenue to the tune of almost €21 million.
A Tipperary-based manufacturing firm attracted particular attention from the Irish media upon publication of the report after being forced to part with a huge amount of money. Gleeson Concrete made a settlement of €7.65 million following an investigation which highlighted the under-declaration of corporation tax, VAT and PAYE/PRSI.
Businesses looking for a reason to take bookkeeping more seriously or those seeking help from a tax accountancy specialist could be interested to learn that €4.8 million of Gleeson Concrete's settlement was made up of penalties and interest.
The risk of under-declaring tax liabilities is not purely financial however. Highland Radio reported that Mary McKinney, a Donegal-based haulage contractor, received a three-year suspended prison sentence and was ordered to do 240 hours of community services after being found guilty of 15 tax offences.
Offshore assets were also included in the tax investigation report. Herald.ie highlighted the case of one Dubliner who received a fine and was left with little option other than to resign following a probe into his offshore activities.
Thomas Gray, a senior official in the Dublin city sheriff's office stepped down after agreeing a €795,630 settlement with the Revenue Commissioners, the newspaper reported.
Small business owners and contractors operating across Ireland who feel some assistance sorting their tax affairs would not be a bad idea following the publication of the figures could be encouraged to contact TaxAssist Accountants. The firm specialises in small business accounting, helping enterprises with tax planning in order to maintain good practice with bookkeeping, VAT requirements and corporation tax liabilities and other tax needs.
