Taxes Consolidation Act 1997 section 904A

Power of inspection: returns and collection of appropriate tax

Section 904A empowers authorised officers to enter the premises of financial institutions and audit their deposit interest retention tax (DIRT) returns, including the power to examine procedures, sample accounts treated as exempt from DIRT, and impose penalties for non-compliance.

• An authorised officer (a Revenue official or a suitably qualified auditor approved by Revenue) may enter a financial institution's premises at any reasonable time to audit its DIRT return for a year of assessment.
• The officer may examine the institution's DIRT compliance procedures and check a sample of accounts treated as exempt from DIRT, to verify that proper declarations or tax reference numbers are held and that procedures are being followed in practice.
• Where the officer believes deposits have been incorrectly treated as non-relevant (i.e. exempt from DIRT), further enquiries may be made to establish whether any person has a tax liability.
• An employee who fails to comply with the officer's requirements is liable to a penalty of €1,265, while the institution itself faces a penalty of €19,045 plus a further €2,535 for each day the failure continues.