904G Power of inspection: claims by qualifying insurers

Summary

Under the tax relief at source (TRS) arrangements individuals deduct a percentage equal to the standard rate when paying premiums under qualifying long-term care policies to qualifying insurers. The insurers, in turn, claim repayment of equivalent amounts from the Revenue Commissioners. This section enables the Revenue Commissioners to audit claims for repayments by insurers to ensure that these are correct. To ensure that the relief at source arrangements are being complied with, the Revenue Commissioners can check procedures relating to the vouching of claims and they are also permitted to examine, on a sample basis, underlying records to ensure that the procedures are both adequate and observed and that claims from individuals are valid.

Details

(1) “authorised officer” means a person authorised in writing by the Revenue Commissioners to exercise the powers conferred by this section.

“qualifying insurer” and “qualifying long-term care policies” are defined by reference to their meanings in section 470A.

(2) An authorised officer may enter, at all reasonable times, any premises or place of business of a qualifying insurer to audit claims for repayment made by that insurer of sums deducted by individuals under the TRS arrangements.

(3) The audit procedures can include—

• examination of the procedures adopted by the qualifying insurer relating to the vouching of claims,
• checking a sample of the cases in respect of which a claim has been made to determine whether those procedures have been observed and are adequate.

(4) The authorised officer can require the insurer or its employees to give information, explanations and particulars and to afford reasonable assistance in carrying out his or her duties.

(5) The authorised officer is to produce proof of authorisation on request.

(6) An employee of a qualifying insurer is liable to a penalty of €1,265 for failure to comply with the requirements of an authorised officer in the exercise or performance of his or her powers or duties.

(7) Where the qualifying insurer fails to comply, the penalty is €19,045 with a further penalty of €2,535 for each day that the failure continues.

Relevant Date: Finance Act 2019