The Tax Clinic
One of Donegal’s most respected and reputable financial advice centres is helping hundreds of people across Donegal to get their tax affairs in order.
For many years The Tax Clinic, which is based in both Letterkenny and Killybegs, has been helping people across Donegal to understand the tax system – and to make the most from it!
Mabel McHugh from The Tax Clinic.
Quite simply, The Tax Clinic take the pain out of dealing with the Irish tax system.
The Revenue Commissioners are now regarded as one of the most sophisticated and efficient public bodies in Ireland. There information technology (I.T.) infrastructure is the envy of many.
Last year the Revenue confirmed that they now have over 50 organisations of which they can source information from such as the banks, credit unions, department of agriculture, the department of social welfare, private residential tenancies board, H.S.E to name but a few.
In 2014 the Revenue conducted 41,368 PAYE compliance checks that yielded nearly €22 million and this figure is set to increase in 2015. In conjunction with setting up a PAYE compliance section in each tax district they also issued a detailed document called “ The Compliance Code for Pay as You Earn (PAYE) taxpayers.
Compliance Code for PAYE Taxpayers
This code was developed by Revenue to set out a clear and consistent approach to checks carried out on PAYE tax payers.
For most PAYE tax payers the correct amount of tax will have been deducted from their earnings during the year by their employer.
In some instances, underpayment of tax may arise as a result of the following;
– Tax credits, allowances & reliefs granted that the taxpayer was not entitled to.
– A change in the taxpayers personal circumstances meaning that certain tax credits, reliefs & allowances no longer apply.
– Loss of entitlement to exemption from tax or reduced rate USC.
In order to ensure that the correct tax is collected and to prevent any build-up of tax arrears, it is essential that taxpayers keep Revenue informed with as much up-to-date information as possible about his or her earnings/income.
Tax defaults may be corrected by the taxpayer in any of the following ways:
– Declare that an innocent error has been made.
– Make a self-correction of the error.
– Make a “Qualifying Disclosure”.
Revenue intervention can take the form of either:
– An aspect query.
– A profile interview.
– An audit or investigation.
Why would I have been selected for a PAYE compliance check?
· The Revenue may have obtained third party information regarding additional non-paye income such as payments from the Department of Agriculture, Rental Income etc.
· You have had a gain subject to Capital Gains Tax during the year, an example would be property/land or shares sold.
· You may be in receipt of a foreign pension.
· The Revenue have recently contacted 60,000 PAYE taxpayers and requested that they complete a Form 12 income tax return.
What income types are assessable under a Form 12?
· Income from a trade or profession
· Farming Income
· Income as a Musician
· Rental Income
· Dividend Income
· Foreign Incomes – Foreign Pensions, Foreign Rental Income.
When should I complete and return my Form 12?
Typically, you will need to complete your Form 12 by October 31st in the year following the tax year of assessment. i.e. for 2014 taxes, the Form 12 must be submitted by 31st October 2015.
What should I do now?
If you have received a Form 12 do not ignore it. You must complete the form honestly ensuring that you declare your income from all sources. In some circumstances it may be beneficial to seek professional advice.
We at THE TAX CLINIC are experienced in dealing with all forms of Revenue Intervention and the completion and filing of Tax Returns.
To find out more log onto www.thetaxclinic.ie or call into either the High Road Letterkenny or Main Street Killybegs.
Or Telephone: Letterkenny: 074 91 60550 or Killybegs: 074 97 32055
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