Dáil Éireann Debate, Tuesday - 6 November 2012
246. Deputy Arthur Spring asked the Minister for Finance his views on whether the Revenue Commissioners, under current legislation, provide sufficient protection for the tax payer if incorrect accounts and information are submitted by the tax payer's accountant to the Revenue Commissioners without the taxpayer's agreement. [48350/12]
View answerAs I informed you in my reply to you on the 18th September 2012 in relation to your earlier related question [Ref No: 48350/12], where a taxpayer engages the services of an accountant in relation to taxation matters, that contractual relationship is a private one between the taxpayer and the accountant – the Revenue Commissioners are not involved. Accordingly, it is considered that the appropriate forum for resolution of any dispute by a taxpayer regarding alleged negligence on the part of his or her accountant is either the accountant's relevant accountancy professional body or the Courts. I am informed by the Revenue Commissioners that taxpayers are the persons legally responsible for filing their tax returns and accounts. Taxpayers can either prepare their tax returns and accounts personally or they can engage the services of an accountant to do so. It is reasonable to expect that a taxpayer would take any necessary steps to ensure the reliability of the accountant selected for this purpose – including that the accountant would only submit material to Revenue with the client's agreement.
Any taxpayer who submits incorrect accounts or information to the Revenue Commissioners, whether personally or through an accountant is, of course, obliged by law to correct the position, without delay. Errors corrected promptly may not have any impact on a taxpayer beyond possibly having to pay any additional tax liability due (but no more than would have been incurred if the correct accounts or information were submitted originally). However, if corrections are not made promptly an interest charge may be incurred and, depending on the nature of the incorrect accounts or information submitted, a penalty may also be incurred. In this regard, I explained in my earlier reply that the Revenue Commissioners will consider all factors leading to any adverse tax consequence, but it is important to note that the Revenue Commissioners will not relieve a taxpayer of an adverse tax consequence solely on the grounds that an accountant was in some way responsible.
I am satisfied that the Revenue Commissioners provide significant information in relation to the operation of the tax system and indeed the Revenue On-line System facilitates the calculation and filing of tax returns by taxpayers and their agents.
