The Tax authority has been conducting a National Audit Project on those who work for one client and provide services through their own company, mainly contractors in the IT, Scientific, Technical and Administrative sectors.
It is said that the claim of excessive expenses from professionals through a company has yielded €9.3m for the Revenue Commissioners since last year.
Quoted by Finance Minister Michael Noonan, the expenses reimbursed tax free “was found to be excessive and several cases included expenses which had not been incurred at all or were personal rather than business related.”
Michael McGrath of Fianna Fail advised, “In light of these startling figures any self-employed contractor providing services through a company under contract to a third party client would be well advised to have their tax situation independently checked to ensure they are not building up a massive bill of underpaid tax,”
Following a Revenue pilot project which yielded €4.5m in the South West region, a total number of 385 audits have been closed with additional tax due in 299 cases. 49 have agreed to settlements. 368 companies are still under audit, and €9.3m in interest tax and penalties has been collected.
If you need any advice, contact FMB by calling 01 645 2002 or emailing enquiry@fmb.ie.
Sign up for our quarterly Newsletter and keep up-to-date with FMB news on business, finance and more.
