Revenue Tax Audits

Revenue Audits and Investigationsrevenue tax

We deal with tax audits on behalf of different types of businesses, Revenue audits follow specific tax law and codes of practice and dealing with them requires specialist knowledge and practical experience. For example, making a voluntary disclosure in the correct format and by a certain time will reduce the tax penalties and interest to be paid and will reduce the risk of a tax defaulters name from being published. Non tax professionals may not be familiar with Revenue’s Audit code of practice in this area.

What is a Revenue Tax Audit?

A Revenue audit is a review of your tax return against your books and records. A Revenue audit, intervention or investigation is mainly concerned with detecting and stopping non-compliance with Irish Tax Law.

The Irish Revenue authorities are entitled to make enquiries or investigations and take such actions as it considers necessary to satisfy itself as to the accuracy or otherwise of any statement or other particular contained in any return,
statement or submission.

Reasons why Revenue decide to audit:

1. Screening tax returns – irregularities in patterns and trends in your tax returns and tax compliance history are being queried.

2. Industry Focus – Revenue often select certain business sectors, trades or professions to focus on in a year
3. Random selection – a automated computer selection process selects a small number of audit cases

How do I know if I have been selected for a Revenue Audit?

You will receive a letter from Revenue notifying you that you have been selected for a Revenue audit, you will be given written notice 21 days in advance.

This letter will include:

  1. the date and time of the audit
  2. the accounting period that will be audited
  3. whether the audit will focus on one issue or several issues
  4. the scope of the audit and tax heads being audited

It is important to check that the letter clearly states it is a Revenue Audit, as opposed to any other type of check.

What happens during a Revenue audit?

A Revenue audit usually involves the following steps:

  1. The auditor explains the purpose of the audit and indicates how long it will take.
  2. You are given the opportunity to make a disclosure if you suspect you have avoided paying some tax.
  3. Your books and records are examined against your tax returns
  4. If your return is largely correct, you will be informed as soon as this is certain.
  5. If your return needs to be adjusted or amended, the auditor will discuss this with you and will also provide written notification.
  6. You will have a final interview where you will be asked to agree on the total settlement.
  7. After your agreement you will be asked to agree payment terms

How we can assist you during a Revenue Audit?

  1. We strongly recommend that you appoint a representative to help you with the audit as soon as you receive the audit notification letter.
  2. We can defer the start date of the audit by 2 months by requesting time to prepare a qualifying disclosure
  3. We will review any inaccuracies or irregularities in your tax return workings and prepare revised corrected returns
  4. We will quantify the potential tax underpayment
  5. We will prepare a carefully assessed disclose letter for Revenue
  6. Our knowledge of tax law will help you identify any opportunities for overpaid tax that can be netted off against underpayments.
  7. We will aim to achieve the best outcome for you, and aim to avoid high penalties, publication and prosecution

A Revenue Audit is a time consuming process and there can be significant tax liabilities, interest and penalties involved. It is important to know your rights, the tax law involved and how to approach the audit. Having a representative managing the audit will greatly assist you achieve the best possible outcome and reduce the stress involved in dealing with an audit.