huge surcharge for late filing

J

john.m

Guest
Hello,
Any suggestions on a surcharge for late filing of a tax return?

During 2006 to 2010 I was a company director (A small limited company, which did not actutally trade). All my income was PAYE.

I never filed a personal tax return. I am in the process of filing now, through an accountant. To my horror, I'm being told I will have to pay a 10% surcharge on all the income tax. Even though I have been paying all my taxes as I went along, being on PAYE.

This is a real problem for me, my accountant does not see a way to resolve.
Any suggestions would be very welcome

thanks,
John
 
Tommy, thanks very much, this may be my salvation.
I'm now hunting down my accountant with this suggestion.
 
You might want to fire that accountant if the surcharge is not in fact applicable.
 
Did your accountant not advise you that you had to file the returns in the first place. Presume you did not own 15% of the share capital to qualify for exemption referred to above.
 
Did your accountant not advise you that you had to file the returns in the first place. Presume you did not own 15% of the share capital to qualify for exemption referred to above.

The exemption in this case wouldn't be due level of shareholding, but due to the company being dormant. It's not that he's exempt from being surcharged, but that he's exempted from being deemed a chargeable person, and hence from the requirement to file a Form 11.

http://www.revenue.ie/en/practitioner/law/notes-for-guidance/tca/part38.pdf
"PAYE taxpayers who are company directors or, if jointly assessed under section 1017 or 1031C, whose spouses or civil partners are company directors, are chargeable persons and thus within the Self Assessment system unless the company is effectively dormant or a shelf company. [In practice, this provision is modified so as to exclude certain categories of directors from the definition of chargeable person and hence from the obligation to make a return under section 951 – see Statement of Practice SP-IT/1/93 – “Finance Act, 1992 and Directors”.]"
 
I read the statement of practice but understood it only applied to NP directors.

The Revenue Commissioners also accept that the returns of certain non-proprietary directors including unpaid directors, directors of voluntary bodies or charitable organisations are not critical to the audit process and would not give rise to the detection of any additional tax liability. Accordingly, in administering the new provisions they have decided that, until further notice, returns need not be filed automatically and the surcharge will not, therefore, ,apply in the case of non-proprietary directors -
(i) who are not otherwise chargeable persons, [FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman]and [/FONT][/FONT]
[FONT=Times New Roman,Times New Roman][FONT=Times New Roman,Times New Roman](ii) all of whose income including fees, benefits, distributions etc. has been subject to tax directly or indirectly under PAYE.
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I read the statement of practice but understood it only applied to NP directors.

That's Paragraph 4. Read Paragraph 3...! ;)

(legislated for at S.950 TCA 97:
“chargeable person” means, as respects a chargeable period, a person who is chargeable to tax for that period, whether on that person's own account or on account of some other person but, as respects income tax, does not include a person—

(
a) whose total income for the chargeable period consists solely of emoluments to which Chapter 4 of Part 42 applies, and for this purpose a person whose total income for the chargeable period, other than emoluments to which that Chapter applies, is deducted in determining the amount of his or her tax-free allowances for the chargeable period by virtue of regulation 10(1)(b) of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), shall be deemed for that chargeable period to be a person whose total income consists solely of emoluments to which that Chapter applies,...

...but
paragraph (a) shall not apply to a person who is a director or, in the case of a person to whom section 1017 applies, whose spouse is a director (within the meaning of section 116 ) of a body corporate other than a body corporate which during a period of 3 years ending on the 5th day of April in the chargeable period

(i) was not entitled to any assets other than cash on hands, or a sum of money on deposit within the meaning of
section 895 , not exceeding £100,

(ii) did not carry on a trade, business or other activity including the making of investments, and


(iii) did not pay charges on income within the meaning of
section 243)"
 
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