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Hi Alan, We have a Client who got involved in Galtee Deer Care in 1999/2000. He suffered severe losses here in the region of €40k/€50k some of which were utilised against PAYE income. The Client had to sell some Land to pay for the Trade Losses incurred and submitted a CGT comp to Revenue at the time. He finished up with Galtee Deer Care in 2002 and let the remainder of his land @ €1,450 per annum up until 2018. In some years, he did not receive payment as the farmer drained and fenced lands in lieu. Unfortunately our Client made no Income Tax Returns for the rental as he could not afford to do so. He is now selling the rest of the land with a potential CGT liability arising of €14.5K. We are wondering about claiming Retirement Relief here? If he filed Income Tax Returns for the past 16 years for the rental, the tax liability at 30% would be in the region of €7.5k. Would Revenue also seek interest & penalties here? He cannot use the unused trade losses against the rental? You might indicate what your opinion would be here and the best approach. Should we forget about seeking to claim Retirement Relief altogether? Thanking You Kind Regards Padraig Agnew

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Posted by (Questions: 74, Answers: 22)
Asked on 2 July 2019 3:47 pm
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Dear All,

You might please revert on your thoughts on the above query as soon as possible.

Thanking You

Padraig Agnew

( at 10 July 2019 12:07 pm)

Dear Alan,

I refer to my original email above and reminder. You might please revert with your thoughts on this scenario ASAP.

Yours Faithfully

ODA Ltd

( at 22 July 2019 9:25 am)
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the last 16 years
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Posted by (Questions: 5, Answers: 5078)
Answered on 24 July 2019 12:18 pm
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If he files the outstanding income tax returns he will pay interest and 10% late filing surcharge. Penalties will arise if an audit commences. He cannot use unused trading losses against rental income - trading losses can only be set off sideways in the same year. Would it not be better to correct the situation by filing the outstanding returns and claiming the retirement relief?
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Posted by (Questions: 5, Answers: 5078)
Answered on 23 July 2019 6:49 am

Thank You Alan,

To confirm to claim the Retirement Relief here, should the Client file Income Tax Returns declaring the Rental Income for the last 6 years or 10 years or last 16 years as 2002 was the last year an Income Tax Return was filed?

You might please confirm.

Thanking You

Padraig Agnew

( at 24 July 2019 12:03 pm)

Dear Alan,

We have prepared a calculation for the last 16 years and it shows a tax liability of €6,626 and Interest, Penalties, and Surcharge of €4,744, i.e. a Total of €11,370.

We have applied a Penalty of 3%, un-prompted disclosure and no significant consequences from careless behaviour. Will Revenue accept this level of Penalty or would they seek a higher rate?

Also, if he just paid the CGT of €14.5k and did not file the IT Returns, could Revenue come back and still seek the filing of the Income Tax Returns for the last 16 years as well?

Thanking You

Padraig Agnew

( at 9 September 2019 5:49 pm)