115. Penalties generally

Summary

This section provides penalties for failure to comply with specific requirements as set out in the Act or regulations. Examples of such requirements are the obligation to furnish the particulars for registration or the obligation to keep proper records. The section also provides for penalties on an unregistered person who issues an invoice showing tax or the flat-rate addition in circumstances where tax or the flat-rate addition does not apply. If the person who incurs the penalty is a body of persons such as a company or society, the secretary is also liable to a separate penalty.

Details

(1) Subsection (1) sets out various sections of the Act that contain requirements in relation to the breach of which a penalty of €4,000 is prescribed. It should be noted that a person who is liable for VAT, only as a result of being jointly and severally liable under section 108C is not liable to pay any penalty in respect of that unpaid VAT. Similarly, it should also be noted that a tax representative who is liable only as a result of being jointly and severally liable under section 109A, is not liable to pay any penalty in respect of that unpaid VAT.

A penalty of €4,000 is also prescribed in each of the following cases:

• (2) – An unregistered person who issues an invoice showing tax.
• (3) – The issue of a flat-rate invoice by a person other than a flat-rate farmer.
• (3A) – The issue of an invoice, settlement voucher or other document showing the flat-rate addition in respect of goods / services specified in an order made under section 86A.
• (4) – Where the person who incurs the penalty under subsections (1), (2) or (3) is a body of persons, the secretary will be liable for a separate penalty of €4,000.
• (5) For wilfully obstructing an authorised officer of Revenue in exercising his/her functions in regard to VAT.
• (6) – For obstructing an authorised officer of Revenue in relation to valuing or inspecting a property.
• (7) – A person who supplies goods or services in contravention of the security requirement specified in section 109 is liable to a penalty of €4,000 in respect of each such supply.
• (7A) – A penalty of €4,000 applies for the taxable period where a business, which had qualified under the zero-rating scheme for “export businesses”, fails to notify the Revenue Commissioners that it no longer qualifies.
• A further penalty of €4,000 applies for each subsequent taxable period in which the business does not so qualify and has failed to notify the Revenue Commissioners accordingly.
• (7B) – A person who does not comply with a requirement specified in an order under section 103 is liable to a penalty of €4,000.
• (8) – For failure to furnish records relating to transactions in the transitional period under the special schemes for means of transport and agricultural machinery - see section 124(7)(b).
• (8A)– A person who does not comply with a notice to furnish certain information, issued under section 108A, is liable to a penalty of €4,000.
• (8B)– A person who does not comply with a notice issued under section 108B, is liable to a penalty of €4,000.
• (8C)– A person who does not comply with a notice issued under section 109A, is liable to a penalty of €4,000.

(9) In proceedings for recovery of penalties, certificates signed by Revenue officers in relation to

• – the non-furnishing of returns by defendants,
• – the sending of documents to defendants,
• – the non-issuing of Revenue notices to defendants, and
• – the status of a defendant as an accountable person,

are evidence until the contrary is proved.

Relevant Date: Finance Act 2020