The deadline for the voluntary or “qualifying” disclosure of offshore sources of income by Irish taxpayers is 5.30pm, Thursday, May 4th.
Disclosure must be made by anyone with an asset outside Ireland or who receives income in another country. This can include a pension, bank accounts or rental income earned on properties abroad.
After May 4th Revenue will no longer give credit for voluntary disclosure. If individuals don’t act on the deadline, they can be open to prosecution, being listed in the quarterly list of tax defaulters or be exposed to higher penalties.
Taxpayers must work out exactly what is owing year by year. To that end they must identify the undeclared offshore income, determining what tax would be due.
The tax authorities sent letters out in February to around 500,000 taxpayers who did file annual returns. The letters warned that Revenue would no longer give errant taxpayers credit for approaching it with details of offshore assets and earnings after the May deadline. Instead, it would treat the holding of hidden offshore income as deliberate tax evasion and impose penalties of up to 100 per cent of any tax due.
It also said reminded self-assessed taxpayers that new automatic exchange of information arrangements meant Ireland’s Revenue would get details of any income and/or assets of Irish taxpayers in more than 100 countries by 2018.
PAYE earners may get some relief as taxpayers whose total undeclared tax liability is less than €6,000 will still be able to approach Revenue after the May 4th deadline and pay any tax due without penalty. However, they need to approach Revenue before Revenue contacts them about any such offshore assets.
