Revenue in Training to focus on GAA clubs
The taxman will begin to trawl the books of individual GAA clubs in the late summer or autumn. It is understood that tax officials will look at payments made to managers and coaches as part of a detailed examination into the way clubs conduct their business.
Under the GAA’s rules, the only payments team managers can receive are vouched expenses for travel and meals. It is also understood that negotiations are still continuing between Croke Park and the Revenue Commissioners over the issue of payments to referees. Officials in Tipperary were advised that new revenue guidelines will now be enforced nationally with clubs told to cease with cash payments and instead pay all bills and other expenditure by cheque.
In a Dáil reply Michael Noonan, Finance Minister made it clear that if GAA clubs pay more than vouched expenses, or pay travel expenses at a higher level than the civil service rate, there are tax implications.
Part-time workers who may be retired, including ground staff and caretakers, who get paid for their work will now have to declare any income they get. Revenue sources said that if a pensioner receives a payment from any employer, it may have tax implications depending on the level of income they receive from other sources. Revenue is also expected to focus on possible benefit in kind implications arising from the practice of making cars available to managers and officials.
Assistance on Tax Issues contact Patrick O Rourke, OKelly Sutton, Kildare Town. www.okellysutton.ie
Courts get tough on Tax Evaders: (23-3-12)
Recently the Dublin Circuit Court found a man guilty and sentenced him to jail for four years for failing to pay VAT on 119 second hand cars to the value of €226,718. He has since paid the tax of €226,718 that was due. The Judge, Martin Nolan said that sometimes tax evaders thought they could buy themselves out of trouble but the judge stated “He must pay for it as a matter of punishment and people considering going down this road”. Patrick O Rourke Partner OKellySutton, Kildare. www.okellysutton.ie
Man jailed over garlic tax scam: (9-3-12)
Fruit and Vegetable business man has been jailed for six years for a €1.6 million scam involving the importation of garlic. He avoided paying customs duty on over a thousand tonnes of garlic from China by having them labeled as apples. The maximum sentence for the offence is five years in prison or a fine of three times the value of the goods.
Judge Martin Nolan imposed the maximum term on one count and one year on another count. These are to run consecutively, meaning a total of six years. However, the judge added he had engaged in a “grave” and “huge” tax evasion scheme. The import tax on garlic “may or may not” be excessive, he said but that this was for the Oireachtas to decide and not individuals.He said he had to impose a significant jail term because such offences are difficult to uncover and therefore the only effective deterrence is lengthy prison terms for those who are caught. Partick O Rourke , Partner OkellySutton , Kildare. www.okellysutton.ie
Tax liability for Pensioners?
It’s hard to believe how Revenue can get something like this so wrong, but they have. 115,000 letters have being dispatched to pensioners resulting in 20,000 worried pensioners contacting the Revenue helpline on Friday and Saturday past, with phone lines expected to be ‘busy’ again today when they reopen. So how did Revenue get it so wrong?
The fact is, in the vast majority of cases, no additional tax arises. So why were letters issued at all to these pensioners? The fact is, Revenue should have done their analysis and then issued any letters necessary.
I have being contacted by numerous pensioners over the past few days who showed me the Revenue letters they have received. Had it not being the fact that I am an experienced tax professional, from reading the letter I would have assumed they had a tax liability too! Take one pensioner who approached me with a letter stating that additional tax would be deducted from his occupational pension. The fact is he is tax exempt (less than €36k total income for married couple) so he doesn’t have any tax liability at all!! The letter should have stated that his tax credits and bands will be adjusted accordingly for his occupational pension.
Pensioners with concerns are:
• pensioners with other income of greater than €50,000. Revenue have stated that there are approx. 2,500 pensioners in this category and these will be dealt with on a case by case basis
• self employed (e.g. farmers) who are in receipt of state pensions. These individuals (or their accountants) may have omitted the state pension income in their tax return, and if this is the case, they will be guilty of making a false return.
For these individuals, surcharges / penalties / interest will follow not to mention a possible Revenue audit. They should immediately review their tax return and amend if necessary.
In the following, I have summarised the types of state pensions which are taxable and how they are taxed.
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Maternity Benefit Ireland – have you overpaid tax and PRSI
Maternity Benefit – have you overpaid tax and PRSI?
Maternity benefit is not regarded as Income and should not be taxed. However, many employers make the mistake of over taxing their employees whilst they are out on maternity leave. This can happen if you continue to pay your employee their full wage as normal and recover the maternity benefit directly from the Dept of Social Protection.
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O'Kelly Sutton
