Revenue Target Offshore Assets – Incentive to disclose before 30th April 2017

Revenue Target Offshore Assets

Increased international co-operation means that Revenue are now receiving more information from tax authorities in other countries.  Assets held abroad by Irish taxpayers are now more likely to come to the attention of Revenue and as a result Revenue are once again focusing on this area.

The information received by Revenue can include details of:

• foreign properties
• employment income
• investments
• account balances
• income received
• sales proceeds
• account closures

This information can be used to target taxpayers for audit.

The Good News – (If you act soon)

There are incentives for voluntary disclosures including reduced penalties and non-publication or prosecution of tax defaulters. Finance Act 2016 amended the voluntary disclosure provisions to remove these benefits for items disclosed after 30 April 2017.

Irish taxpayers for example who may have foreign rental income that they have not declared in Ireland should make a voluntary disclosure before 01 May 2017.

If not they are likely to receive an audit from Revenue in the future.