Returns of Third Party information to The Revenue

[Brendan Burgess]

Under the Finance Act 1992, businesses must make returns of all payments made for services during the tax year in excess of €6,000.

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What does this mean in practice? Do large companies have to make a gigantic return of thousands of payments?

Does the Revenue use the information?

Brendan

 

[Clarkey]

Under the Finance Act 1992, businesses must make returns of all payments made for services during the tax year in excess of €6,000.

[broken link removed]

What does this mean in practice? Do large companies have to make a gigantic return of thousands of payments?

Does the Revenue use the information?

Brendan

Yes on both counts. Any payments made for services provided in the course of the trade in excess of €6,000 must be recorded and returned to Revenue. Another similar form which must be returned by Auctioneers and Letting Agents in relation to rent collected on behalf of landlords is Form 8-3. This details the name and pps number of the property owner and address of the property. I'm sure this information is valuable to Revenue.

 

[Brendan Burgess]

Thanks Clarkey

I had interpreted that as payments made to people who were not registered for VAT. So every accountant's bill, every solicitor's bill, every employment agency bill must be listed.

That is a lot of work. Though I suppose it's automated easily enough.

Brendan

 

[Clarkey]

Thanks Clarkey

I had interpreted that as payments made to people who were not registered for VAT. So every accountant's bill, every solicitor's bill, every employment agency bill must be listed.

That is a lot of work. Though I suppose it's automated easily enough.

Brendan

Just ran a report on Sage Accounts Production which gives total payments by supplier so should be easy enough. Any business with enough suppliers to make this a headache should be using an accounts package capable of running these reports so shouldn't really be a problem.

 

[Nige]

In reality many large companies don't make these returns.