We have noticed a large increase in Revenue desk audits and verification claims; e.g. two recently for 2009 tax year requesting rental receipts for all expenses claimed, details of properties owned past and present etc. Also company queries are very frequent including details of tax creditors shown on the company tax return and a reconciliation to the date these liabilities were paid. It is essential to keep receipts, as Revenue will disallow expenses which cannot be evidenced. This is relevant for pension contribution certificates, medical expenses receipts, donations etc. You are required to keep 6 years of records in case of inspection by Revenue.
It is also important to pay enough preliminary tax; Revenue will request the balance of income tax immediately if insufficient preliminary tax was paid. Do your tax early to plan ahead for any liabilities.
Revenue audits take up a lot of time and can mean significant additional fees being incurred.
Lewis & Co. Accountants
8 Priory Office Park, Stillorgan Road
Blackrock, Co. Dublin, A94 EE95
Tel: +353 1 211 0000
Fax: +353 1 210 9694