Galway Advertiser 2004/2004_03_11/GA_1103_E1_019.pdf 

Extracted text

March 11 2004

Galway Advertiser

N E W S 19

Revenue turns up the heat on offshore accounts
Revenue's latest investigation, as explained by Paul Gill, tax manager, KPMG Galway.
The Revenue Commissioners recently advertised their intention to investigate all offshore accounts and investments of Irish resident individuals. Revenue intends to pursue tax, interest and penalties on undeclared income or capital gains. The start date for this investigation is March 29 2004. As a result of recent Finance Acts, the Revenue now has extensive powers which it has successfully used in the past to obtain High Court Orders requiring financial institutions in Ireland to provide information. Impending legislation will also allow Revenue to obtain information from Irish financial institutions about account holders in their offshore subsidiaries. Revenue is also receiving information from other jurisdictions about assets held by Irish citizens. The advantages of making a voluntary disclosure include reduced penalties, nonpublication in the Tax Defaulters List, and nonprosecution in most circumstances as far as tax is concerned. While this does provide an attractive incentive to come forward, there are also important legal issues, which need to be addressed. In addition it should be noted that any disclosure made must encompass all sources of undeclared income and gains, and not only those of an offshore nature. However it is important to note that certain individuals are precluded from making a qualifying disclosure. You cannot make a qualifying disclosure if you are or were the subject of a Revenue investigation in relation to bogus nonresident, Ansbacher or Irish Permanent Isle of Man accounts and trusts, National Irish Bank/Clerical Medical financial products, Bank of Ireland Jersey trusts or Moriarty & Flood/Mahon tribunals, etc.

Important steps and dates
There are two stages in this process: You must give notice of your intention to make a qualifying disclosure. Revenue must receive this by March 29 2004, and You must submit your statement of disclosure, including a tax computation, a payment

and a declaration by May 28 2004. Interest and penalties must be included. Revenue's qualifying disclosure offer provides a very important mechanism for tax defaulters with offshore issues to settle their outstanding tax affairs. For further information contact Paul Gill or Mary Heffernan at KPMG, Odeon House, Eyre Square, Galway, on 091 534600. This article is a summary only and should not be relied upon without taking detailed professional advice.

Galway's Premier Health & Fitness Club
Minimum payment plus

35

.99
per month

ANNUAL MEMBERSHIP
Offer applies to annual single membership

Consequences for you
If monies put offshore were declared for Irish tax purposes, together with all income or gains arising on such monies, you should not be concerned. However, if the monies put offshore were from undeclared sources or the income, gains, gifts, or inheritances arising were not declared, a tax liability exists. Interest and penalties will apply as well as the possibility of publication of the defaulter's name and of criminal prosecution. These consequences are mitigated to some extent as outlined below.

Let us help you put a little spring in your step for Summer
Make that commitment!

Benefits of making a qualifying disclosure by March 29
There is a voluntary disclosure mechanism, whereby a taxpayer freely discloses default to Revenue before Revenue begins its investigation. A qualifying disclosure is a disclosure that falls within the conditions specified in the Code of Practice for Revenue Auditors. For a disclosure to qualify it must be in writing and must provide details of the sources of the undeclared money, a computation of the tax, interest, and penalties due, and a declaration that the disclosure is complete.

120 OFF JOIN NOW
GALWAY'S FAVOURITE PAPER

Phone (091) 773344

Tel: 091 530900

41/42 Eyre Square, Galway. The Kiosk, Headford Road Shopping Centre.
Fax: 091 567079 sales@galwayadvertiser.ie news@galwayadvertiser.ie
www.galwayadvertiser.ie