As you may be aware, the deadline to give notice to Revenue of your intention to make a voluntary disclosure in respect of undisclosed income and undeclared liabilities relating to both Irish and offshore settlements is 1 September 2009.
The current Revenue investigation is concerned with the tax treatment of property, assets and funds transferred to or settled by persons on foreign and Irish trusts. Similar structures including foundations, establishments, trust enterprises and offshore companies are subjects of the investigation.
Revenue will pursue any taxes arising from profits or gains accruing to trusts or offshore structures which should have been previously declared for Irish tax purposes.
The voluntary disclosure initiative announced by Revenue has two phases and two important dates:
September 1 2009 – Submission of notice of intention to make a disclosure to Revenue.
October 31 2009 – Submission of full disclosure together with payment of outstanding tax, interest and penalties, as appropriate.
Persons who fall within the current Revenue investigation but fail to make disclosures by the above dates will not receive the following benefits:
Mitigation of penalties on underpaid tax.
No publication of the taxpayer’s identity or of the payments to Revenue.
No prosecution in relation to the disclosure.
Taxpayers who are already under enquiry or who failed to disclose undeclared funds under a previous Revenue investigation are precluded from making a qualifying disclosure. These include:
Holders of Bogus Non-Resident (BNR ) accounts.
Ansbacher and NIB / CMI enquiry cases.
Offshore financial product or Single Premium Policy cases.
Persons undergoing investigation arising from the Moriarty or Flood /Mahon tribunals.
Monies lodged with Irish financial institutions.
As the deadline of September 1 2009 is fast approaching it is important that you seek professional tax advice where you believe that there may be tax issues associated with a trust and/or offshore structure. In such a case, a complete review will need to be carried out to determine any undeclared tax liabilities.
KPMG tax advisors, Odeon House, Eyre Square, Galway are available to assist in all matters relating your personal and corporate tax affairs and can be contacted on 091 534600 for an appointment.