How do revenue reclaim money from dead people

Discussion in 'Tax' started by Builder, Jan 4, 2006.

  1. Builder

    Builder Frequent Poster

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    Just looking at revenue website re underpayments and interest due to revenue. Some of the people owing money are deceased, how does revenue collect from them, is it taken from their estate, that is if they have one. Revenue repay any overpayment of taxes up to 4 years, how is it that they can reclaim any money owing to them even if it is more than 4 years, and even if it means going after the dead.
     
  2. ClubMan

    ClubMan Frequent Poster

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    I presume any liabilities that are not discharged at the time the estate is redistributed pass on to the inheritors? Wasn't this the case with collection of outstanding taxes on bogus non resident accounts and/or certain life assurance policies whose original holders had since died and the inheritors of the assets were responsibly for discharging the liabilities?
     
  3. dam099

    dam099 Frequent Poster

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    I wonder would the liability be capped at the amount of the inheritance as it is feasible that with interest and penalties the amount owed to Revenue could exceed the actual inheritance.
     
  4. Benny

    Benny Guest

    Does this mean that the inheritors of estates could have a liability for tax that is discovered not paid by their parents.

    How far back can the revenue go , is there a limit ?

    I.e if property was bought 40/50 years ago and the money that purchased property had not been declared ?
     
  5. ClubMan

    ClubMan Frequent Poster

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    As far as I know it does as evidenced by the recent investigation of certain life assurance products.
    I don't think so.
    I believe that Revenue could still pursue the beneficiary for the outstanding tax liability.
     
  6. Glenbhoy

    Glenbhoy Frequent Poster

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    With regards limits, given that financial institutions must only hold info for 6 years, is there a possibility that the revenue could have diffculty proving their case in some instances?
     
  7. ClubMan

    ClubMan Frequent Poster

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    I could be wrong but I suspect that the onus may be on the individual to disprove Revenue's case in situations such as this.
     
  8. Glenbhoy

    Glenbhoy Frequent Poster

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    Knowing the revenue and their insistence that they're always right, that's probably the case alright Clubman, we don't all have the resources that Pino Harris has, where he can afford to take them on and win!
     
  9. ClubMan

    ClubMan Frequent Poster

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    I have 20+ years of personal financial records including bank statements, bills, payslips, tax documents etc. and they take up one drawer in desk filing drawer at home with space to spare which is hardly an onerous demand on resources.
     
  10. Glenbhoy

    Glenbhoy Frequent Poster

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    Exactly Clubman, which makes the six year requirement even more ridiculous. In this day and age banks should be required to keep copies of all documentation, it's not as though they have to keep warehouses full of documentation anymore!