Value Added Tax Consolidation Act 2010 section 116A

Penalty for deliberately or carelessly making incorrect returns, etc.

Section 116A imposes tax-geared penalties for deliberately or carelessly filing incorrect VAT returns, claims or declarations, or failing to file returns, and provides a graduated scale of penalty reductions depending on whether the person cooperates with Revenue, makes a qualifying disclosure, and whether the default is deliberate or careless.

• A person who deliberately or carelessly files an incorrect return, makes an incorrect claim or declaration, or fails to file a return is liable to a penalty equal to the tax underpaid, which may be reduced depending on cooperation, the type of qualifying disclosure made, and whether the default was deliberate or careless.
• A qualifying disclosure must be in writing, signed by or on behalf of the person, accompanied by a declaration that it is correct and complete, and accompanied by payment of the tax and interest due; it must cover all matters giving rise to penalties across VAT, income tax, corporation tax, capital gains tax, stamp duty and capital acquisitions tax.
• No penalty arises where the aggregate tax default across all tax heads is €6,000 or less and the default is careless rather than deliberate, and no penalty applies to amendments arising from a technical adjustment or an innocent error.
• Additional fixed penalties apply for misuse of incorrect documents (€3,000 careless, €5,000 deliberate), improper VAT-free importation or acquisition using a false VAT number (€4,000 each), and goods found in the State after alleged export are liable to forfeiture.