Form 12 Tax Return

[Jumo]

Hi - question on submitting Form 12 tax returns.

I am a PAYE worker with an investment property which is loss-making (rents cannot even cover 75% of the mortgage interest, even ignoring relevant costs).

I submitted Form 12s return a few years back but havent submitting a return for the past 2 years, which I know I should have even though I am sure there is no liability. I'd like to submit the outstanding forms shortly, but wondering if there might be any issues/penalties with Revenue because of long delays in submission of the forms?

 

[murphaph]

Almost certainly not if you approach Revenue before they approach you. I don't think there can be any penalties just for not filing if there was no liability anyway, but an expert poster here will be able to clarify that one quite quickly I'd say.

 

[Scoby]

[FONT=&quot]Unless Revenue get really sticky you should be ok – provided you take murphaph advice & get to them before they get to you. They could fine you €1,250 for non-filing (per return), so it really is in your interests to deal with it – hope that helps[/FONT]en

 

[mandelbrot]

If Form 12 is the correct return for you to file then you won't have a difficulty with penalties, as these are only applied to individuals who are chargeable persons and obliged to file Form 11.

However you need to file the returns to avoid difficulties in the future due to:
1. the fact that Revenue will no doubt know that you are letting a property (from any/all of LPT, NPPR and PRTB records) and if they do not see a return coming in they may assume that you are hiding an income source and audit you.
2. difficulties in later years if/when you actually need to utilise the losses that you are currently incurring, in the absence of having filed returns in a timely manner to establish that you were in fact making these losses.