The Revenue Department covering late payments, returns and penalties is the Penalties and VAT Prosecutions Unit covering P35/VAT Compliance and Local Property Tax.

A civil penalty can also be imposed on an Employer who fails to make a return as provided for in Section 79 of the Finance (Local Property Tax) Act 2012 where a direction under Section 65 of the Finance (Local Property Tax) Act 2012 had been received.

Cases suitable for the imposition of penalties can be referred to Penalties and VAT Prosecutions Unit. When a penalty is imposed on a customer, the Prosecutions Unit issues a Penalty Notice initially, i.e. a final request for payment of the penalty.

These notices are instant and will issue once the default situation crystalises at the end of the taxable period.

In the absence of any agreement that the taxpayer is liable to the penalty or following failure by a taxpayer to pay an ‘agreed’ penalty, Penalties and VAT Prosecutions Unit, if still of the opinion that the taxpayer is liable to a penalty, will issue a written notice of that opinion to the taxpayer in the form of a Notice of Opinion.

The Notice of Opinion will include details of;

(a) The provisions under which the penalty arises

(b) The circumstances in which that person is liable to the penalty

(c) The amount of the penalty to which that person is liable

(d) Any other details Penalties and VAT Prosecutions Unit considers necessary

There is an agreement phase for both notices, 21 days for the Penalty Notice and a statutory 30 days for the Notice of Opinion, to allow for agreement and payment of the penalty or an appeal against the penalty wish to advise you that, if you fail to file the outstanding VAT3 returns within the timeframe allowed, you may be prosecuted for non-submission of these returns. On conviction, you will be liable to a fine up to a maximum of €5,000 on each summons, to a term of imprisonment, or both the fine and imprisonment at the discretion of the Judge.

Our outsourced Financial Control services looks at the processes and weakness that expose the company to penalties for late filings and payments.