Opening a foreign bank account makes you a "chargeable person" for self-assessment purposes. That means you must file an income tax return (form 11) in the year the account is opened and provide details of the account.
You'll be taxed on any interest received in the year at DIRT rates, however if the return is late you'll be taxed at income tax rates.
So although you didn't recieve any interest from the account in 2011 you still need to file a return.
If the interest is paid in Nov 12, is the return time enough until Oct 13?
No.
A return must be made to notify Revenue that the account was opened in the year, regardless of whether or not any interest was received in the year.
Irish residents themselves are obliged to report the opening of such accountsmatter also falls to be reported by a financial institution or other agent.
on their annual returns of income. This obligation applies irrespective of whether the
In the case of the taxpayer, noncompliance
attracts the surcharge for late submission of returns under section 1084. The
surcharge will apply for the year in which the undeclared account was opened.
There is an obligation on residents to include in their annual returns of income details of
any foreign accounts opened by them
As PAYE taxpayers are not under an obligation to make mandatory returns of income
and may not be requested by an inspector to make one for a particular year, it is
provided that a resident is to be regarded as a chargeable person for the purposes of the
surcharge under section 1084 and the obligation to make automatic Self Assessment
returns under section 951 for any chargeable period in which he/she opens or causes to
be opened a foreign account.
316. Foreign Bank Accounts (S. 895) Give the following details for each foreign bank account opened in 2011
How much might a surcharge be?
There's a surchage on late income tax returns of 5% of the tax liability if filed within 2 months of the original deadline, and 10% thereafter.
There would also be interest on any unpaid tax.
...but the tax will be paid on time..it's just that the account was opened in 2009 and not notified in any tax form until the upcoming return.
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