Making a Disclosure
Higher rate income tax calculation spreadsheet
The attached spreadsheets are provided to assist taxpayers who wish to make a disclosure of an income tax default. The spreadsheets will calculate the income tax, PRSI and levies due from a self-employed taxpayer, all of whose undisclosed income is taxable at the higher or highest rate in all years, and who is liable to pay PRSI and levies on his undisclosed income in all years. There are separate worksheets for self-employed and PAYE taxpayers.
The 
"Sample computation" spreadsheet (MS Excel, 40KB) shows the liability for an individual who had undisclosed income of IR£10,000 in 1988/89, IR£20,000 in 1994/95, and €50,000 in 2003. These years have been chosen to show a tax computation in a year where penalties cannot be mitigated; a computation in a year where Irish Pounds were legal tender and penalties may be mitigated, and a computation in a year where the € is legal tender and penalties may be mitigated.
To calculate the tax, interest and penalty liability, the figures for undisclosed income are entered as shown:
- for 1988/89, 10,000 in cell B8;
- for 1994/95, 20,000 in cell B14,
- and for 2003, 50,000 in cell B28.
[Please note that the amounts entered should relate to Irish pounds for years up to 2001, and in €s for years from 2002 onwards.]
The spreadsheet automatically calculates the income tax due at the higher or highest rate, plus PRSI and levies: 59% in 1989/90, 50.25% in 1994/95, 47% in 2003 for self-employed taxpayers, and 44% in 2003 for PAYE taxpayers.
The statutory interest due is calculated by reference to today's date (i.e., the date on which you fill in the spreadsheet). The spreadsheet automatically updates to today's date.
In the "Sample computation" (MS Excel, 40KB), the penalty is
calculated on the basis that the individual is eligible for the benefits of a qualifying disclosure. In such cases the penalty for underpayment of
tax for tax years from 1991/92 onwards is mitigated to 10% of the tax due. The penalty for prior years cannot be mitigated. Taxpayers in such a position may use the * 10% penalty spreadsheet to calculate their liabilities.
The "Sample computation" (MS Excel, 40KB), also shows the liability figure for circumstances where the individual cannot make a qualifying disclosure and the penalty may only be mitigated to 75% of the tax due. [Some taxpayers are excluded from the benefits of a qualifying disclosure because, for example, they may be in a class of persons under investigation by Revenue, or a previous disclosure they made may have been incomplete. For information on taxpayers who are excluded from making a qualifying disclosure, please refer to the 
Code of Practice for Revenue Auditors, 2002 edition, paragraph 10.1.1 on page 31 (PDF, 906KB).
Taxpayers in such a position may use the * 75% penalty spreadsheet (MS Excel, 52KB) to calculate their liabilities.
Each of the write-in sheets is linked to a statutory interest calculator, which computes the interest from the date the tax becomes payable until the date it is paid. The overall interest rate figures from this sheet feed back to the interest rates on the write-in sheets. The "statutory interest calculator" is shown with the "sample computation".
Sample Computation Sheet (MS Excel, 40KB)
* 10% Penalty Calculation Sheet
* 75% Penalty Calculation Sheet
* The above mentioned spreadsheets are currently being updated
