Failure to pay taxes on Rabobank account

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barry1778

Guest
Hi all,

I would like to ask if someone in the group could give me a bit of advise in relation to unpaid taxes. I'm not a tax expert.

I'm a PAYE worker with an current account at AIB but a few years ago I opened a Rabobank account, transfrerred 20000 € and bought a few funds. I never touched the funds until last year and in June 2009 almost a year ago I sold one of the funds (the Robeco Lux o Rente fund) and made a profit of 710€ . Until now I was genuinely convinced that the profit made was supposed to be considered capital gain and since the profit was less than 1270 € I never paid a cent. I had no other income than my PAYE wage in 2009 plus these 710 €. Now while discussing at work about shares, funds etc. today while seeing all the news about the shares indexes collapsing, one colleague told me to double check because these Rabo funds are always taxable at 28% and the free grace for capital gains under 1270 € does not apply.
In fact I did some more investigation tonight on the Rabo website and it appears to be the case. I should have checked better when I sold the fund but I was 100% sure that it was considered capital gain and I never really checked. Also my colleague told me that the revenue inspectors are currently checking all the Rabo accounts for unpaid taxes. What can I do now ? Is it possible to go to the tax office and pay the tax with the interest due of course as I should have paid before October lat year or should I wait for the tax inspector to ring me or send me the letter when he checks my Rabo account ? My colleague told me that if I fail to pay the tax, the tax officer can even charge me 10 times the amount due so for 190 € not paid is it true that he can send me a bill for 1900 € ?

Thanks a lot indeed for any suggestions.
Best regards

Barry1778
 
The best thing to do is to complete a tax return and pay the liability now.
 
Thanks for the feedback.
I wouldn't be confident to do it myself, would you know any accounting firm that I can go to in the south Dublin area ? How much is normally the fee that they will charge for calculating the fines, interests due and completing the return and do the paperwork ?

Thanks again
 
Hi Barry,

Some good news, first-off, if you made the disposal in 09, then the tax return for this period is not due till 31 October 2010.

Secondly, I understant the Rabo funds accounts are UCITs covered by Chapter 4 part 27 of the Taxes Consolidation act.

The tax liability is currently 28% so long as your tax return is filed correctly. Where your tax return is not filed correctly, then the tax liability jumps to your marginal rate (41%).

In relation to filing your tax return, I would expect the fee to be about €100 including VAT for a stardard Form 11. (You mentioned that you did not have any other income other that the gain on the sale of these shares.)

Also a good tax advisor will take a quick look at your circumstances to see if you can claim any additional credits so you may actually end up with a tax refund.

Also, as your non PAYE income is below €3,174, you may not be considered a chargeable person and therefore no preliminary tax was due last October, instead you liability is paid this October when filing your tax return. This ties in to the information provided on the Rabo website. If you want to pm me, I would be happy to dicuss filing your 2009 tax return.

Kieran Coughlan, Tax Manager, CXC
 
Don't bother paying anybody to do it, assuming you are a regular PAYE worker with not much extra income.


Just complete a Form 12 for 2009 before 31-Oct 2010.

Search www.revenue.ie for the Form 12.

I've completed dozens of them over the years.
 
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