111AAAB Penalties

Summary

Where a constituent entity fails to deliver a top-up tax information return or a GloBE return pursuant this Part, the company is liable to a penalty as detailed below.

This section provides for transitional penalty relief where the constituent entity has taken reasonable care to ensure the correct application of this Part.

Details

(1) This subsection provides that the failure to deliver a top-up tax information return or a notification of filer by the constituent entity, or the designated local entity acting on behalf of the constituent entity, on or before the specified return date, will result in the imposition of a penalty. The penalty is calculated as:

Where-

P is €10,000, and

M is the number of complete months from the specified return date to the day on which the top-up tax information return or notification, as the case may be, subject to a maximum of 48 months.

(2) This subsection provides that the failure to deliver a GloBE return, or a failure to comply with a notice to provide requested particulars or documents shall render the constituent entity liable to a penalty. The penalty shall be €10,000.

(3) This subsection provides that a certificate signed by a Revenue officer for the purpose of imposing a penalty shall be accepted as evidence that a penalty shall apply.

(4) Where a person assists in the delivery of any incorrect return, account, statement or declaration, that person shall be liable to a penalty of €10,000.

(5) This subsection provides for transitional penalty relief where a penalty is applied under this section or under section 1077F. The transitional period relates to a fiscal year beginning on or before 31 December 2026 and ending on or before 30 June 2028. To be entitled to the relief, the constituent entity must take reasonable care to ensure the correct application of this Part.

Relevant Date: Finance Act 2024