Revenue Audit

Revenue Audit –

Every employer needs to keep a full and accurate record of their business. These Records need to be kept for a period of 6 years. A Revenue audit covers, income tax, corporation tax, and returns submitted in respect of VAT, PAYE/PRSI or Relevant Contracts Tax.

How are taxpayers selected for audit –

There are three methods of selection which are

  • Screening Tax Returns – this involves Revenue examining the returns and reviewing their tax compliance history.
  • Projects on business sectors – Projects are conducted to examine tax compliance levels.
  • Random selection – This means that all tax payers have a possibility of being audited.

What is involved in an Audit –

  • The auditor will explain the purpose of the audit and an indication of the length of time it will take to complete
  • The auditor will ask if you wish to outline any inaccuracies in your tax return
  • The auditor will inspect your records and confirm figures have been correctly filed and the tax declarations are exact
  • If the auditor finds the majority of returns correct you will be notified
  • If the auditor finds that adjustments are required, this will be discussed verbally with you and also be notified in writing.
  • The auditor will ask for your agreement to the total settlement figure before finalising.
  • Once agreed, the full amount should be paid to the auditor who will issue a receipt