We understand from Revenue and reports from some members that letters in respect of the Services Contractors Nationwide Project issued to taxpayers recently. As set out previously in Chartered Tax News, this project is an extension of the South West Region review of Services Contractors which commenced earlier this year.

Chartered Accountants Ireland understands that Revenue's view is that the category of tax default arising in Services Contactor Companies is that of Deliberate Behaviour. This is the most serious category of tax default and carries a tax geared penalty of 100% to 75%, reducing to a 50% tax geared penalty on completion of a prompted qualifying disclosure and further reducing to a 10% tax geared penalty on completion of an unprompted qualifying disclosure. Revenue has suggested that the period under review is four years preceding the date of issue of the notice of audit. We expected an eBrief to issue which will summarise its position as currently stated in a number of Revenue Guidance publications on expenses. At the time of writing, it is not clear when this eBrief will issue.