What is a Revenue Level 2 Compliance Intervention - Risk Revview

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Opus2018

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Hi guys,

I've been picked for this - apparently it's to do with a house purchase in 2025 which I didn't take a mortgage out for.

I've prepared the details of the house sale and purchase for the relevant period and have most of the bank details handy (Just one or two documents to get).

Just checking to see if anyone has underwent this before? I explained that I earned the cash while working abroad (Worked in the US from 2016-2019 and 2022).

Anyway, just interested in people's experience on this one.

Best,

Opus2018
 
Opus2018 said:
Just checking to see if anyone has underwent this before? I explained that I earned the cash while working abroad (Worked in the US from 2016-2019 and 2022).
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You’re not really explaining the issue. Is it revenue want to know the source of the funds? If yes, and you can prove it’s legit what’s the issue?

And I presume you brought back the foreign based money legitimately.

It’s a lot of money to have earned in a four year period that buys much of a house nowadays ?
 
Hi all,

Just to be clear - it looks like they are interested in how I purchased a house in 2025. I did it by selling my previous property and paid cash for the balance. I'm in the process of collecting the paperwork to show how I did it. To be fair, I earned a fair bit of cash when I was away and I would have brough it back via Wise. As far as I am aware, I've no tax liability on these earnings as I was not tax resident in Ireland at the time. I would have also had other savings to help me on this but this is before the period they are interested in. I have engaged with Revenue and they said to send in all bank details, which I'm finalising at the moment.

My question what was people's experience of a level 2 compliance audit. My thanks to Clubman - I saw one or two threads but didn't see them all.

Best,

Opus2018.
 
See here about remitting foreign income to Ireland

Moving or returning to Ireland

This pages gives an overview of moving or returning to Ireland
www.revenue.ie www.revenue.ie

Opus2018 said:
I would have also had other savings to help me on this but this is before the period they are interested in
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If they are interested in how you purchased the house, the source of the money, then surely your savings are important.
It seems you used 3 sources to purchase the property last year.

- used cash from income earned abroad which you remitted from abroad to Ireland via Wise
- used past savings you had from ? (salary in Ireland?)
- you sold a house, in Ireland, and used that

Not sure if you should use an accountant or not. But if all the monies are legit than can't see how there could be a problem.
 
Hi Bronte,

Yes, the money is legit - it's all from salary over the last 16 years or so.

The majority of savings come my work abroad in the years 2016-2019 and 2022. I also had some savings and I sold a house to buy the current one.

It seems to be a paper audit rather than the full one.

Best,

Opus2018
 
Opus2018 said:
I earned a fair bit of cash when I was away and I would have brough it back via Wise. As far as I am aware, I've no tax liability on these earnings as I was not tax resident in Ireland at the time.
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Yes so Ireland does not apply worldwide taxation to employment income earned abroad so long as at the time of leaving, the individual expected to be non-resident in the following year and from the date of leaving. For the year of leaving and year of return, there is a rule known as split year relief which ensures the employment earnings from abroad are not in scope.

So you will effectively be relying on those provisions and there is lots of guidance on the Revenue website which you can point to in order to explain this.

Leaving Ireland

This page explains what to do if you are leaving Ireland
www.revenue.ie www.revenue.ie

Moving or returning to Ireland

This pages gives an overview of moving or returning to Ireland
www.revenue.ie www.revenue.ie


Opus2018 said:
and I sold a house to buy the current one.
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They may look at when you bought that house and your entitlements to full CGT principal private residence relief. However there are provisions in the law to allow deemed occupation for time spent working abroad. You should review that as well.

Principal Private Residence (PPR) Relief

This page outlines Principal Private Residence (PPR) Relief
www.revenue.ie www.revenue.ie

Any transaction you mention will be scrutinised for unpaid tax. For example, if you owned a house in Ireland while living the US, were you earning Irish rental income and did you pay tax on that. That type of thing.

Consider the various possibilities before putting pen to paper. The onus is ultimately on the tapayer to prove no liability exists but anything you do so can be used against you! They will present as though they are only asking questions but they are reviewing the answers for information that they can then scrutinise and use to raise an assessment. And someone else will come on here saying there's nothing to worry about I'm sure.
 
Hi Villianes,

Just to clarify, the house in Ireland wasn't rented at any time. Also the main period of my working abroad seems not to be in scope for this audit - It's only from 2022 on with a request to supply details of bank accounts from 2023-2025.

Best,

Opus2018
 
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