Revenue Note for Guidance

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Revenue Note for Guidance

1072 Penalties for fraudulently or negligently making incorrect returns, etc

(1) & (2) A penalty of €630, plus a sum amounting to the difference between the amount of corporation tax payable by the company for the accounting period or accounting periods comprising the period to which the return, statement, declaration or accounts relate and the amount which would have been the correct amount payable had the return, statement, declaration or accounts been correct, applies to a company which negligently —

  • delivers an incorrect return under section 884 (return of profits),
  • makes an incorrect return, statement or declaration for any allowance, deduction or relief in respect of corporation tax, or
  • files incorrect accounts with the Revenue Commissioners, the Appeal Commissioners or an inspector in relation to ascertaining the company’s liability to corporation tax.

In addition, the company secretary is liable to a separate penalty of €125.

In the case of fraud, the penalty on the company is €1,265 plus an amount which is twice the difference between the amounts referred to above while the penalty on the secretary is €250.

(2A) & (2B) Where a company, due to fraud or neglect, fails to deliver a return required by section 884, it is liable to similar penalties. Thus, it is liable to a penalty of €630, plus (in the case of neglect) a sum amounting to the difference between the amount of corporation tax paid by the company for the accounting period or accounting periods comprising the period to which the return relates and the amount which would have been payable had the return been made and been correct. In the case of fraud, the penalty on the company is €1,265 plus an amount which is twice the difference between the amounts referred to above.

(3) A return, statement, declaration or accounts will be deemed to have been negligently made or submitted by a company where the company becomes aware of an error in any such document and that error is not rectified by the company within a reasonable period.

(4) This section applies only to contraventions occurring up to the passing of the Finance (No. 2) Act 2008 (i.e. up to 24 December 2008).

Relevant Date: Finance Act 2021