It is a fundamental principle of the Self Assessment system for Income Tax, Corporation Tax and Capital Gains Tax that returns filed by compliant taxpayers are accepted as the basis for computing tax laibilities. The same principle applies to the PAYE and VAT systems. Revenue promotes compliance with the tax system by vigorous pursuit of those who do not file returns, by auditing selected returns and by taking appropriate action against tax evaders.

What triggers an Audit

Almost all audits are carried out for a reason. Only a small percentage of cases (in the order of 5% at the time of writing) are selected at random. You should therefore assume that Revenue are turning their attention to you because:

• Certain details in the returns, accounts or computations submitted do not concur with Revenue “norms”, and /or
• Revenue have obtained information from or via a third party which leads them to believe that a return is not correct
  

This of course does not necessarily mean that any further tax is due, or that any matter was not indeed correct.

It can be an extremely traumatic experience, and few people in business will admit to being prepared for a thorough investigation of their business or tax affairs. The taxpayer will need help from a tax adviser or accountant when it comes to dealing with a Revenue official.

It is important that you consult your tax adviser before responding to any notification received of an impending revenue audit

At Clerkin & Co we can minimize the impact of a Revenue Audit by:

• A review to prepare for the Revenue Audit visit
• Dealing with the Inspector on your behalf during the Revenue Audit and negotiating on any issues in dispute.
• Representing your interests before the Appeal Commissioners, the Ombudsman, or the Courts

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