Taxes Consolidation Act 1997 section 1077F

Penalty for deliberately or carelessly making incorrect returns or failing to make certain returns, etc.

Section 1077F sets out the penalty regime for filing incorrect returns or failing to file returns, with penalties scaled according to whether the default was deliberate or careless, and reduced where the taxpayer cooperates with Revenue or makes a qualifying disclosure.

• Penalties are tax-geared, meaning they are calculated as a percentage of the tax understated, ranging from 100% for deliberate defaults down to 3% for careless defaults without significant consequences where there is full cooperation and an unprompted qualifying disclosure.
• A qualifying disclosure must be in writing, signed by or on behalf of the taxpayer, accompanied by a declaration that it is correct and complete, and accompanied by payment of the tax and interest due.
• No penalty applies where the aggregate tax default across all taxes and duties does not exceed €6,000 and the default is careless rather than deliberate, or where the error is a technical adjustment or innocent error.
• Repeat disclosures attract higher penalties: a second qualifying disclosure within five years of the first, and a third or subsequent disclosure within five years of the second, result in reduced or no mitigation of the penalty.