Irish Revenue Commissioners issue new Compliance Code for PAYE Taxpayers
On 27th January 2014, the Irish Revenue Commissioners published a Compliance Code for PAYE Taxpayers with effect from 18th November 2013.
The Compliance Code for Pay As You Earn (PAYE) taxpayers has been developed to set out a clear and consistent approach to PAYE compliance interventions that Revenue conducts in order to detect and deter non-compliance.
For most PAYE taxpayers, at the end of each year, the correct amount of tax (including PAYE and USC) will have been deducted by their employer from their earnings so that they will neither be due a refund of tax nor owe any tax.
However, in some instances the incorrect amount of tax will have been collected or refunded due to innocent error or through no fault on the part of the taxpayer while in other instances it will have been due to careless behaviour or deliberate behaviour on the part of a taxpayer.
The Compliance Code for PAYE taxpayers sets out the details in relation to:
- The scope of this Compliance Code i.e. to whom this Code applies
- Regularising tax affairs where an error is discovered
- Tackling non–compliance, including by way of PAYE compliance interventions, and the possible outcomes
- Interest charges that may apply to any additional tax
- Different penalties that may be charged on tax defaults arising from careless behaviour or deliberate behaviour on the part of the PAYE taxpayer
- Measures relating to persons who knowingly or carelessly assist or induce others to make incorrect claims or to make an incorrect statement or declaration to Revenue
- Penalties for failure to make a tax return
- Publication of the tax default where certain criteria are met
- Payment methods available to discharge additional liability
- Claims of ‘Inability to Pay’ additional tax arising from PAYE compliance interventions
- Prosecution of cases involving fraud.
This Code will come into effect from 18 November 2013. All PAYE compliance interventions undertaken by Revenue from that date will be made under the terms of this Code.