Voluntary Disclosure Initiative – Deposit Interest Reporting
- Introduction
- Frequently Asked Questions
- Deposit account holders with outstanding tax liabilities
- Consequences for Deposit account holders who Fail to Disclose and Pay a tax liability
- Further Information
Introduction
Under recently introduced regulations banks and other financial institutions are required to provide Revenue with details of the names and addresses of account holders where interest in excess of €635 was paid. For the years 2005 and 2006 banks, building societies and savings banks were required to report to Revenue on DIRT-liable accounts on or before 15 September 2008. For the year 2007 the reporting deadline was 31 October 2008.
Taxpayers who had €100,000 or more in aggregate in these accounts (which included funds not previously declared for tax) at any time between 1 January 2005 and 31 December 2007 had until 15 September 2008 to make a voluntary disclosure under an initiative announced by the Revenue Commissioners.
Revenue emphasised that the focus was on money, which was undeclared for tax purposes and the initiative affected a relatively small number of taxpayers.
Persons who had tax issues relating to monies on deposit and who wished to avail of the opportunity to make a voluntary disclosure received the following benefits:
The penalty for underpaid tax was substantially mitigated;
Their name and settlement amount was not published by Revenue in the quarterly list of tax defaulters in Iris Oifigiúil;
Revenue did not initiate an investigation with a view to prosecution.
Taxpayers who are already under enquiry or who failed to disclose these accounts in a previous investigation are precluded from making a qualifying disclosure.
The deadline date for the submission of a notice of intention to make a voluntary disclosure was 15 September 2008 (coinciding with the first reporting deadline). A full disclosure with all due tax, interest and penalties must have been made by 15 January 2009.
Explanatory Note (PDF, 52KB) dated June 2008.
Department of Finance Press Release
dated 28th May 2008
Frequently Asked Questions
Please follow the link below for Frequently Asked Questions;
Frequently Asked Questions (as at 4 June 2008)
Deposit account holders with outstanding tax liabilities
The Revenue Commissioners followed the procedures and practices as outlined in the Code of Practice for Revenue Audit to determine the liabilities owing. To assist taxpayers in this matter a Notice of Intention (PDF, 20.4KB) to disclose and a Disclosure and Statement of Amounts Due Form (Form IRP1 (PDF, 43 KB) ) had been prepared.
See (Further Information).
The following links can be used to calculate certain tax liabilities:
Income Tax (Excel, 50 KB)Consequences for Deposit account holders who Fail to Disclose and Pay a tax liability
Persons who had undeclared tax liabilities in relation to accounts which in aggregate held €100,000 or more at any time during the years 2005, 2006 and 2007 and who failed to avail of this disclosure initiative are precluded from making a voluntary disclosure if a Notice of Intention to disclose was not submitted on or before 15 September and a full payment and disclosure was not made on or before 15 January 2009.
Where follow-up enquiries identify taxpayers with undeclared liabilities associated with accounts which in aggregate held €100,000 or more at any time during the relevant years they will face additional penalties and where the settlement exceeds €12,700 for periods up to 2004 or €30,000 for later periods they will be published in Irish Oifigúil. They also may be subject to criminal investigation.
Further Information
A Revenue HELPLINE is available at;
01-6474818, Monday - Friday.
8.30 a.m. to 4.30 p.m. (inclusive)
Enquiries may also be addressed to:
Office of the Revenue Commissioners,
Investigations & Prosecutions Division,
Underlying Tax Project (Interest Reporting),
4th Floor,1 Clanwilliam Court,
Lower Mount Street,
Dublin 2.
which may also be contacted at: utproject@revenue.ie
Fax number:
01 - 647 4821
Supplies of the Explanatory Note may be requested from the Revenue address above or can be downloaded from the Revenue Website (Explanatory Note (PDF, 52KB))