Revenue investigation on Share Option

[bluefalcon]

I was reading an article in the Business Post today where the Revenue is investigating unpaid tax on Share Options. In the years 2007 , 2008, 2009 I received some share options from my company to buy shares for less than the market value. I always paid the tax on the difference, completed and sent the rsto1 module and always got a letter back from Revenue that the tax was paid, however I never completed a tax return as I believed that being a PAYE only there was no need. What are the implications of paying the tax but not filing the return ? The tax paid was not to much it was always between 200 and 400 euros twice a year since the shares didn't move too much.

Also, how many years can revenue go back in their investigations in case there was no tax return filed ?

Thanks !
Bluefalcon

 

[srase]

If you do not file a tax return you can be open to prosecution by Revenue. I have seen Revenue take this action against a number of people but only after writing to them a number of times telling them to file the return. If a court action is commenced Revenue will not drop the case and a minimum court fine of €1,250 per return would likely be applied. This is even though all the tax has been paid.

If you file your income tax returns before you get a Revenue letter and explain the reason as a genuine error Revenue may not apply any penalties.

In this case Revenue are not restricted as to how many years they can go back. The four year time limit would not apply as it would be considered by Revenue to be negligent not to file a tax return (not matter how genuine the mistake was).

 

[bluefalcon]

Thanks Srase for the reply. I will go to see an accountant in early 2015 and check what is the best option for me in order to regularize my position, thanks again for the clarification