New Code of Practice for Republic of Ireland Revenue Audit from October 2010Tuesday, October 5th, 2010
Revenue audits are conducted to ensure that individuals and businesses comply with tax and duty legislation. It may involve an examination of an individual’s or a company’s books, records and compliance with tax obligations in order to establish the correct level of liability.
In some cases, subjects for audits are selected randomly but, in general, they are based on informed selections from the risk profiling of cases, including computer-assisted profiling as well as local knowledge. Audit cases may also be selected for examination of a particular sector or scheme.
An audit may be carried out by an individual auditor or by a team of auditors depending on the size and complexity of the case, the need for specialist expertise and the number of Revenue Districts participating in the audit.
The new Code of Practice came into effect from 1 October 2010 in respect of audits that are notified on or after that day. Where notice has been given earlier but not resolved before that date, the taxpayer may choose whether the settlement is made under the terms of this new Code or the Code of Practice for Revenue Auditors 2002. The penalties to be applied will be determined by whether the default occurred before, on, or after the 24th December 2008.