Since July 2013, a total of 385 audits have closed with additional tax due in 299 cases while a further 49 have agreed to settlements. A total of €9.3m in interest tax and penalties has been collected.
368 companies remain under audit.
"In many instances contractors will have acted on professional advice and the people who provided that advice had serious questions to answer," Deputy McGrath said.
"In light of these startling figures any self employed contractor providing services through a company under contract to a third party client would be well advised to have their tax situation independently checked to ensure they are not building up a massive bill of underpaid tax," he advised.
Looks like they've turned their sights on Dublin. I got a letter demanding the last 3 years Motor, Travel and Subsistence and all back up documentation, Profit & Loss Accounts for last 3 years, Wages reconciliation for the last 3 years, VAT for 2013 and sales/purchases for 2013. Alternately the offer to make a 'qualifying disclosure' is made to allow a mere 10% penalty.
One guy held his AGM on the Algarve and charged expenses for it.
Do you really believe such stories, Brendan? I don't.
Do you really believe such stories, Brendan? I don't.
So Revenue are correct in going after these people who are misclaiming their expenses? Particularly as it pertains to travel expenses.
What happens if they decide the self employed person is an employee, does the paying company than have to put him on the books and back pay PRSI etc
Its hard to gauge if a lad is within the rules or not, I'm a sole trader for 4 years now with 90% of the time having 1 client. Generally I would travel to the company site on 2 to 3 occassions per week and then work from home from my own office.
I claim 10% of the electricity per month and my broadband and mobile. I have also claimed only IT related items, laptop, mouse, keyboard, monitor and printer and online courses that I do.
I like Xavi also have my contract with a 3rd party within the multinational, I bill these each month and they pay me, though I do all the work for the multinational.
On each visit to the site I claim civil service rates for mileage and subsistence all of this given the nod by my accountant.
I have to say I am worried that I might not be legit, I feel that I do everything by the book but wonder now if Revenue will see it different.
My roundtrip for this last 2 years contract is 190km per day that I go there.
For the previous 2 years it was 340km roundtrip.
Edited to add:
I have to say it baffles me that there are professional accountants who tell clients to "claim" mileage allowances. If they know that a sole trader can't pay themselves a salary, how do they square the circle of claiming an allowance from themself... baffles me.
The final customer is delighted, because they have gone from having an employee costing them
to having a more flexible arrangement with a lower overall cost to them.
The exchequer, via Revenue, is sad, because it is losing substantial revenues from the arrangement -
if there is legitimate avoidance involved .
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