The time limit for making a disclosure in relation to the 2009 RCT 35 return was extended by a further month to 15 April (or 23 April for ROS customers). If principals or their agents came across instances of payments incorrectly made gross, to a valid C2 holder without an RCT47 payments card, Revenue will not seek to impose the normal tax, interest or tax-geared penalties where the error is exceptional and a qualifying disclosure is made by 15 April (or 23 April). Instead a fixed penalty of €3,000 will apply. Previously, the time limit for making the qualifying disclosure was within one month of the RCT 35 filing date i.e. by 15 March (or 23 March).

The fixed penalty of €3,000 will only apply where the error is exceptional and a disclosure is made by 15 April (or 23 April). Essentially an error will be exceptional if it does not involve any failure to operate RCT generally and is once-off. The principal must have taken adequate steps to prevent a recurrence; and must be generally tax compliant. The penalty will apply to each instance of the failure to deduct the correct tax.

Readers should note that the extension to 15 April (or 23 April) refers to the qualifying disclosure and not to the RCT 35 filing return deadline. The filing date for the RCT 35 for 2009 was 15 February or in the case of ROS customers 23 February.

A qualifying disclosure made in these circumstances will not result in an audit; however an audit still may arise based on normal selection procedures.

The extension to the time limit for making a disclosure is welcomed and represents a positive development on Revenue's part.