Revenue have issued eBrief No. 15/2008 to clarify the position in relation to penalties incurred by a person who has died. In summary, if a settlement has been agreed prior to death then Revenue can recover the penalty from the personal representatives; if a settlement has not been agreed prior to death, then Revenue cannot recover any penalties from the personal representatives.

This position will apply from 18 March 2008.

As advised in Section 1.18 of the November 2007 issue of tax.point, the UK Revenue had clarified their position in mid-September, which is similar to the Irish position. However, it would appear from the UK notification that their clarification may be backdated in certain circumstances. The UK notification confirmed that their previous position had been in contravention of the European Convention on Human Rights. No similar reference is made in the Irish clarification, though the Institute had formally raised the UK notification with Revenue through TALC Audit and requested their views.

In a Dail question on 3 October, the Minister for Finance had referred to TCA97 s1060 and that the European Convention on Human Rights was being kept under review. Presumably, the clarification has arisen from this review.

eBrief No. 15/2008 is reproduced in Section 2.02.