Last month Revenue sent out a letter to ½ million taxpayers which suggested that the taxpayer had made a mistake in their tax return.

By reading it carefully, what they meant was, that if you have income coming from outside the Republic of Ireland or assets outside the state which you have not declared then now is the time to do it.

As and from 1 May 2017, it will no longer be possible to obtain the benefits of a qualifying disclosure if matters included in the disclosure relate directly or indirectly to any of the following:

• an account held or situated in a country or territory other than the State
• income or gains arising from a source, or accruing, in a country or territory other than the State
• property situated in a country or territory other than the State.

A ‘qualifying disclosure’ is a disclosure of complete information in relation to, and full particulars of, all matters occasioning a liability to tax that give rise to a penalty. When the tax payer initiates it there are reduced penalties rather than when Revenue prompt you to make one.

If you have an interest bearing account in Northern Ireland or the UK, or any other country, which has not been declared then it should be included in this disclosure.

If you have a second home, a holiday home or an investment property outside the state from which you are getting rental income which has not been declared then it too should be included.

Revenue are particularly looking for undeclared tax liabilities and there is a “Liabilities Estimator” provided by Revenue to help work out the interest and penalties on any undeclared liability. The result can be substantial the further you go back!

Needless to say, it can be difficult to come up with a lump sum when the income has probably been spent at this stage. That is one reason to get your disclosure in sooner rather than later to get everything sorted by the deadline.

If you have a foreign account or a property outside the state from which you are not getting income, this too needs to be disclosed but through your normal income tax return.

There is a deadline for getting the disclosure in and that is 30th April 2017. If this information applies to you, then do something about it now.

If this does not apply to you then enjoy continuing peaceful night’s sleep!

If you have any questions about this then please contact me.