Taxes Consolidation Act 1997 section 886

Obligation to keep certain records

Section 886 sets out the obligation on taxpayers to maintain proper financial records and linking documents, specifies the formats in which records may be kept, prescribes the retention periods that apply, and imposes a penalty for non-compliance.

• Anyone carrying on a trade, profession, or other activity chargeable to tax, or liable to capital gains tax, must keep records sufficient to support accurate income tax, corporation tax, and capital gains tax returns.
• Records must be kept on a continuous and consistent basis, in written form in English or Irish or in an approved electronic format, and must be retained for at least six years after the transactions to which they relate.
• Extended retention periods apply where returns are filed late, where Revenue inquiries or appeals are ongoing, and for up to five years after a business ceases; liquidators, directors, and personal representatives inherit the obligation where companies are wound up or individuals die.
• Failure to comply with the record-keeping and retention requirements carries a penalty of €3,000, unless it can be shown that no person was chargeable to tax for the period in question.