Taxmans on the prowl
BEWARE the taxman this year; the Revenue has promised to increase the number of investigations it will carry out, and it will target businesses, especially cash traders and partnerships, as well as individuals, warns Brian Gilligan of chartered accountants Moores Rowlands.
Problems with transition to self-assessment tied up many Revenue staff last year, he says. This year, that will not be the case. And scrutiny could increase – Revenue sees the introduction of self-assessment for companies from June next year as "fertile ground for investigations", Mr Gilligan adds.
Under the new regime, all companies will be required to submit a tax return after their year end. Small and medium-sized companies will have to pay tax based on that return nine months after their year end, he explains.
But the new rules will also give the Revenue the power to enquire into a tax return for up to two years after the year end, twice the current period. *