Dáil Éireann Debate, Thursday - 23 November 2017
77. Deputy Michael McGrath asked the Minister for Finance further to Parliamentary Question No. 67 of 16 November 2017, the penalties that will now apply to persons who come forward with a declaration after the 4 May 2017 deadline; and if he will make a statement on the matter. [49817/17]
Amharc ar fhreagraI am advised by Revenue that the penalties to be applied in the case of persons who did not come forward by 4 May 2017 to make a qualifying disclosure and who have tax liabilities relating to offshore matters will be determined in accordance with Revenue’s Code of Practice for Revenue Audit and other Compliance Interventions.
The rate of penalty in a particular case is determined by reference to the category of default and whether the tax defaulter has cooperated fully with Revenue in resolving matters, and is applied to the difference between the tax properly payable and the amount, if any, actually paid. The penalty rates are detailed in the following table.
Penalties in Cases Where No Qualifying Disclosure is Made
|
Category of Default |
Penalty |
Full Cooperation Penalty Reduced To |
|
Careless behaviour without significant consequences |
20% |
15% |
|
Careless behaviour with significant consequences |
40% |
30% |
|
Deliberate behaviour |
100% |
75% |
Those penalty rates are substantially higher than the rates which apply in the case of qualifying disclosures. In the case of an unprompted qualifying disclosure relating to careless behaviour without significant consequences, a penalty rate of 3% applies where the tax defaulter cooperates fully with Revenue. A first unprompted qualifying disclosure concerning careless behaviour with significant consequences is liable to a penalty of 5%, and the penalty for a disclosure of this kind relating to deliberate behaviour is 10%, in cases where full cooperation is given.
