Revenue Note for Guidance

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Revenue Note for Guidance

111AAX Surcharge for late return

Summary

This section imposes a surcharge for the late filing of a GloBE tax return.

The surcharge is based on a percentage of the total top-up tax payable for the fiscal year for which the return is late by reference to the length of the delay in filing, but subject to an overall cap on the level of the surcharge.

Details

(1) This subsection provides that where a return is submitted after the specified return date, the amount of GloBE tax payable is increased by a surcharge calculated under this section.

(2) Where a surcharge is applied, the amount of the surcharge shall not exceed

  • (2)(a) €50,000, where the surcharge applied is 5%, or
  • (2)(b) €200,000, where the surcharge applied is 10%.

(3) This subsection provides that interest shall apply to any surcharge applied under this section as if that surcharge was GloBE tax.

(4) This subsection contains provisions relating to circumstances where a return may be deemed to be late for the purpose of applying the surcharge.

  • (4)(a) where an entity deliberately or carelessly delivers an incorrect GloBE return on or before the specified return date, that return is deemed to be late unless the error in the return is remedied by the delivery of a correct return on or before that date,
  • (4)(b) where an entity delivers an incorrect GloBE return on or before the specified return date, but does so neither deliberately nor carelessly and it comes to the entity’s notice that it is incorrect, the entity shall be deemed to have failed to have delivered the return on or before the specified return date unless the error in the return is remedied by the delivery of a correct return without unreasonable delay, and
  • (4)(c) where an entity delivers a GloBE return on or before the specified return date, but the Revenue Commissioners, by notice in writing, request further information and the constituent entity fails to deliver such information within the specified timeframe, the constituent entity shall be deemed to have failed to have delivered the return on or before the specified return date.

(5) This subsection provides for the definition of “carelessly” which is contained in section 1077F.

Table

The Table to the section provides the percentage of surcharge applicable based on the length of time between when the return is delivered and the specified return date.

Timing of delivery of return relative to specified return date (1)

Surcharge (2)

Return delivered between 0 and 2 months from the specified return date

5 per cent

Return not delivered 2 months from the specified return date

10 per cent

Relevant Date: Finance Act 2024