Surcharges for late filing
An important element of any fixed Pay and File regime is an appropriate sanction for those who do not comply with the Pay and File deadline. In the case of Income Tax, Corporation Tax and Capital Gains Tax this takes the form of a surcharge for the late filing of a return. The surcharge is based on a percentage increase in the total tax payable for the year of assessment. A similar surcharge provision is being introduced for CAT. This is consistent with the objective of bringing CAT into line with other self-assessment taxes.
The surcharge is based on a percentage increase in the total tax payable for the year of assessment, and is subject to a grading of the surcharge by reference to the length of the delay in filing as well as being subject to an overall cap on the level of the surcharge calculated as follows:
A 5% surcharge applies, subject to a maximum of €12,695, where the tax return is delivered within two months of the filing date.
A 10% surcharge, up to a maximum of €63,485, will be applied where the tax return is not delivered within two months of the filing date.
Interest also arises for late payments.