Hi
I am making a qualifying disclosure on behalf of my mother who is in receipt of a small (€2k per annum) UK state pension which, purely from ignorance, was not declared since receipt in 2009.
I was about to calculate the total due, plus interest plus penalties, but noticed in the Revenue FAQ that, if the foreign pension is less than €5k a year, the intention of Revenue is that the full effects of the disclosure regime do not apply and making a disclosure for the previous 4 years is sufficient.
That's good news for my mother as it will reduce the tax due from perhaps €12k to €6k but if anyone thinks I'm misinterpreting this please let me know. Otherwise, perhaps helpful for others to know. Relevant piece from FAQ below:
3.6 My only foreign source of income is a foreign pension which is less
than €5,000 per annum, and I pay tax in Ireland through the PAYE
system. What are the implications for me?
For non-chargeable persons (that is persons who do not have an obligation to file an annual
income tax return Form 11 and are taxed though the PAYE system) whose sole foreign
income is an occupational pension from another country or a foreign State pension that is
less than €5,000 per annum, it is not the intention that the full effects of the Disclosure
regime will apply in these cases. Consequently, where the foreign pension is taxable, when
the pension recipient is making a disclosure of the relevant income to Revenue, the
calculation of outstanding tax, USC and PRSI is capped at the previous four years’
liabilities.
I am making a qualifying disclosure on behalf of my mother who is in receipt of a small (€2k per annum) UK state pension which, purely from ignorance, was not declared since receipt in 2009.
I was about to calculate the total due, plus interest plus penalties, but noticed in the Revenue FAQ that, if the foreign pension is less than €5k a year, the intention of Revenue is that the full effects of the disclosure regime do not apply and making a disclosure for the previous 4 years is sufficient.
That's good news for my mother as it will reduce the tax due from perhaps €12k to €6k but if anyone thinks I'm misinterpreting this please let me know. Otherwise, perhaps helpful for others to know. Relevant piece from FAQ below:
3.6 My only foreign source of income is a foreign pension which is less
than €5,000 per annum, and I pay tax in Ireland through the PAYE
system. What are the implications for me?
For non-chargeable persons (that is persons who do not have an obligation to file an annual
income tax return Form 11 and are taxed though the PAYE system) whose sole foreign
income is an occupational pension from another country or a foreign State pension that is
less than €5,000 per annum, it is not the intention that the full effects of the Disclosure
regime will apply in these cases. Consequently, where the foreign pension is taxable, when
the pension recipient is making a disclosure of the relevant income to Revenue, the
calculation of outstanding tax, USC and PRSI is capped at the previous four years’
liabilities.