REVENUE audits are on the increase as it bids to offset the sharp fall in the Government’s tax haul.
This is according to business adviser with Westboro Partners Michael Magee who said the bigger the fall in Revenue’s tax intake, the more active they are likely to become.
“Companies and business will come under the spotlight with Revenue carrying out desk audits, which can lead to full audits and trawling through business records to increase the tax haul in the months and years ahead,” he said.
Mr Magee said companies viewing the Revenue as a bank could end up facing “high interest charges, penalties, and perhaps the sheriff coming to collect”.
“In the current economic climate, where cash is king and cash flow is crucial, some companies will turn to the easiest cash resource available,” he said. “That may involve slowing up payments to the Revenue either through non-payment, late payment, or even by delaying the submission of returns.”
Revenue operates on a daily interest rate of 0.0273% or 0.0322% and, depending on the tax this can equate to around 11% annually.
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