Farmers and contractors continue to feature on latest tax defaulters list

A number of farmers and agricultural contractors feature on a list of tax defaulters for the fourth quarter of last year, which was recently released by the Revenue Commissioners.

The tax defaulters list is published in two parts. Part One lists persons upon whom a fine or other penalty was imposed by a court.

The following categories are included in this section:

  • Failure to file a return.
  • Filing an incorrect return.
  • Illegal selling of tobacco.
  • Cigarette smuggling.
  • Various excise and licensing offences.

A total of 15 farmers or agricultural contractors failed to lodge Income Tax returns to the Revenue in the final quarter of 2016. Amounts ranged from €1,250 to €6,250.

Tax Defaulters 1

Brian Flynn, an agricultural contractor from Enniscrone, Co. Sligo, was also fined €3,000 for failing to lodge VAT returns in the fourth quarter of last year.

Meanwhile, three farmers made the tax defaulters list for the misuse of marked mineral oil (green diesel). These farmers were fined between €2,500 and €4,000.

Tax Defaulters 2

Part Two of the tax defaulters list also includes persons in the case of whom a penalty was determined by a court during the period October 1, 2016 to December 31, 2016.

This includes persons in whose case the Revenue Commissioners accepted a specified sum in excess of €12,700 / €30,000 / €33,000 (depending on the periods in which the liabilities arise).

This is in respect of any additional liability due for tax, including interest and penalties arising from a settlement. This may happen instead of instituting proceedings for the recovery of the penalties. The list includes instances where the amount of penalty included in the settlement exceeded 15% of the tax, the Revenue said.

In other words, penalty determinations are published in this list only where the penalty determined by a court exceeds 15% of the tax, by reference to which the penalty determination has been made and where the aggregate of the tax, the interest due on that tax and the penalty determined exceeds €30,000.

Unpaid amounts are subject to normal collection and debt recovery procedures.

There were 76 settlements published by the Revenue, under Part Two of the tax defaulters list, for the final quarter of last year.

The total value of these settlements/determinations amounted to €11.06m. Four farmers featured in this part of the tax defaulters list.

James Doherty from Ballyrobin, Ferrybank, Co. Waterford was penalised €839,110.50 for under-declaration of Capital Gains Tax, relating to an amount of €1,118,814.00.

Colm O’Murchu from Monadrishane, Kilworth, Co. Cork, who is both a farmer and an agricultural contractor, was penalised €47,596.99 for the under-declaration of VAT.

A publican and farmer named John McDermott from Ardkeeran, Riverstown in Co. Sligo was penalised €25,260.07 for the under-declaration of Income Tax and VAT.

A penalty of €53,705 was also issued to Sean Flanagan from Lakenstown, Ballynacargy in Co. Westmeath, who is a farmer and landlord, for the under-declaration of Capital Gains Tax, VAT and Income Tax.