Revenue laying down law to clubs

GAA clubs across the country are facing a Revenue crackdown which will see them liable to be audited at any time and instructed to keep detailed accounts.

At a meeting held by Tipperary board officials during the week, a number of clubs were told that the new Revenue guidelines will be in operation nationwide.

In the strongest terms, they were informed their affairs must be in order, a sentiment that is now likely to be echoed by county boards across the country.

It is also understood that the GAA is set to sign up to the Yendo automated accounting system, which will link in with Revenue as well as social welfare.

GAA clubs will also be encouraged to end cash payments and issue cheques instead, while the distribution to funds raised by initiatives such as club lottos will have to be accounted for.

Any challenge games between clubs will have to be declared to county boards to ensure gate money is documented, while those between clubs from different counties must be reported to the respective provincial councils for the same reason.

Part-time workers such as gate-checkers and scoreboard operators will also have to declare their earnings.

While, for example, a pensioner who works as a groundsman for a sum will be obliged to declare his remuneration for the work done.

Following an inquiry yesterday, the Revenue stated: “If a pensioner is in receipt of remuneration from an employer it may have tax implications depending on the level of other income they are in receipt of.”

Those professionals such as doctors and physios who are commissioned by clubs will also be scrutinised by Revenue.

While not referring directly to the GAA, the department’s spokesperson Sarah Cox pointed out there are self-assessed taxpayers (ie clubs) who are on their radar.

“The main focus of Revenue continues to be on selecting cases for intervention based on the presence of various risk indicators and other information available.

“This is the type of targeted intervention that gets best results and that is most likely to change the behaviour of the taxpayer into the future.

“The targeted approach is greatly enhanced by the computerised Risk Evaluation Analysis and Profiling System (REAP), developed by Revenue.

“This system categorises taxpayers in accordance with defined risk criteria. The system allows for the screening of all tax returns against sectoral and business norms and provides a selection basis for checks or audits.

“This effectively means that 100% of self-assessed taxpayers are risk assessed a number of times a year.

“REAP contains considerable information on all self-assessed taxpayers, including sporting clubs who are registered for VAT, PAYE etc.”

Asked if clubs are now obliged to retain audited accounts, Cox wrote: “Where sports clubs have VAT/PAYE liabilities, legislation outlines the records that should be maintained and retained.

“For example, VAT legislation provides that taxable persons keep ‘full and true records of all transactions which affect or may affect his or her liability’.

“Taxpayers are obliged to retain records for a period of six years.”

Referees are currently waiting to hear from the GAA about their discussions with Revenue, although assurances are expected to be delivered shortly. However, it remains to be seen exactly what Croke Park can do for match officials when Revenue is putting such an onus on them at the moment.

Referees are concerned their match fees will be impacted on while there could be implications for those who claim social welfare benefits.