If you notice that you have made an error on your tax return, it is advisable to contact Revenue as soon as possible to make an unprompted qualifying disclosure.
This is a disclosure that you enact before you are notified of an audit or contacted by Revenue regarding an inquiry or investigation.
A prompted qualifying disclosure is a disclosure made after you have received notice of a Revenue audit.
When making a qualifying disclosure, you should:
- Give all relevant information about the issues that have resulted in tax being due
- State the amount of tax and interest due (the current rate of statutory interest applied to all Irish Judgment debts is 2%) and the periods for which they are due
- Send this to Revenue in writing and sign it
- Include a declaration that as far as you know all information in the disclosure is correct and complete
- Include a payment for any tax or duty, and interest due for late payment.
It is also likely that some penalties will also be applied to any proposed settlement. In a case where a penalty arises the amount of the penalty is generally determined by Revenue.
The amount of the penalty will depend on whether:
- your disclosure was unprompted or prompted
- the additional tax due is above €6,000
- your error was careless or deliberate
- you cooperated fully during the process
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