Taxes Consolidation Act 1997 section 904D

Power of inspection (returns and collection of appropriate tax) investment undertakings

Section 904D gives Revenue authorised officers the power to enter the premises of an investment undertaking, inspect its records and procedures, and audit its returns of appropriate tax (exit tax) deducted on chargeable events affecting unit holders.

• An authorised officer may enter the premises of an investment undertaking at any reasonable time to audit its returns of appropriate tax for a financial year.
• The officer may examine the undertaking's compliance procedures, sample declarations, and individual unit holder transactions to verify that the correct tax has been paid on chargeable events.
• Where the officer has reason to believe that appropriate tax was incorrectly not paid in respect of one or more unit holders, further enquiries may be made to establish whether a tax liability exists.
• Penalties apply for non-compliance: €1,265 for an employee who fails to co-operate, and €19,045 for the investment undertaking itself, plus €2,535 for each day the failure continues.