Finance Act 2004 - Information in respect of Certain Tax Expenditures

Section 86 makes provision for additional information to be given to the Revenue Commissioners in relation to the Exchequer cost of and the numbers claiming certain tax reliefs.

A new Section 897A is inserted into the TCA 1997. The new section obliges employers to provide additional information with the end of year “P35” returns in respect of the overall amount of employee tax deductible contributions to pension products deducted from the wages and salaries of employees. The total number of employees in respect of whom the employer is making such tax deductible contributions will be required as well as information in respect of tax-deductible contributions made by employers to pension products. The information will be required for the tax year 2005 and subsequent years. The first returns will be due in February 2006.

Section 86 also amends the penalty and surcharge provisions to provide for the application of penalties and a surcharge where a taxpayer who is claiming certain specified reliefs fails to give the additional information which will now be required to be included on the annual tax return forms.

The provisions imposing a penalty for non-compliance with the requirement to supply this additional information are such that the penalty, under Section 1052 TCA 1997, will only apply in a case where, after the filing of the tax return, the taxpayer becomes aware or it is brought to the taxpayer’s attention that the additional information has not been included on the return and the taxpayer fails to provide the required information without undue delay.

Similarly, the surcharge for the failure to supply the additional information, under Section 1054 TCA 1997, will only arise where, after the filing of the tax return, the taxpayer becomes aware, or it is brought to the taxpayer’s attention, that the additional information has not been included on the return and the taxpayer fails to provide the required information without undue delay. Where a surcharge applies in these circumstances, it will be the 5 per cent surcharge. This surcharge is subject to the normal maximum of €12,695.

Section 86 also amends Section 1084(2)(a) TCA 1997 to make it clear that, where the surcharge is to apply, it must be included in an assessment so that the taxpayer can appeal against the surcharge to the Appeal Commissioners if the taxpayer is aggrieved with it.