In the news….undeclared deposit accounts

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If you’ve been reading the newspapers lately you will have seen that the Revenue Commissioners are now focusing attention on undeclared deposit accounts.
The Revenue have made it compulsary for banks, building societies, credit unions etc to make automatic returns to them on deposits they hold for customers.Â
What the Revenue is really going after is monies held in accounts which have not been disclosed.
Anyone with at least €100,000 on deposit (for 2005, 2006 or 2007) will be targeted. The deposits can be over a number of accounts.
D Day is the 15th of September – thats when the institutions have to make their disclosures.
Coinciding with this date, taxpayers must notify the Revenue by this date, that they intend to make a voluntary disclosure.Â
If you miss this deadline you may be subject to penalties.
According to Revenue, taxpayers who make a prompt volantary disclosure will face ‘substantially mitigated’ penalties for underpaid tax.
Once qualifying tax payers have notified Revenue of their intent to make a disclosure by the Sept 15th deadline, full details of their tax liability are not required for another four months. People availing of the voluntary disclosure must submit a full declaration, a computation of their tax liability, including interest and penalties, and full payment by January 15th 2009.
 Taxpayers whos’ tax affairs are in order for these deposits need not worry.
E.g if you received the money through the disposal of a second house and have paid your capital gains tax then there will be no issue.
Problems will arise where the amount on deposit has not gone through the tax net properly.
Act now to avoid interest, penalties and publication in the quarterly list of tax defaulters.