Taxman targets lawyers, dentists and accountants

Medics loophole €61m recouped

THE taxman is to target more professionals after its successful probe into medical consultants.

A confidential Revenue briefing reveals the authority is closely watching solicitors, barristers, accountants and dentists to check they are paying what they owe. The probe has already unsettled medical consultants, with the investigation into them returning €61million from 275 consultants and 300 further cases remain open. In addition, Revenue is predicting a future yield of €17.6million from open cases. Tax authorities said the average agreed settlement is €112,000 per case. A scheme which involved misclassification of goodwill and unauthorised expenses, was commonly used by many medical consultants. The tax authority now wants to investigate whether or not other professional groups are using similar tactics. The Sunday Business Post revealed how the use of false corporate companies became common place and how those involved were essentially using tax loopholes between personal and corporate rates of tax. It also emerged more than 2,500 people made a voluntary declaration of money or assets held abroad to the tax authority ahead of the May 1 offshore disclosure deadline. The paper said the disclosure of offshore assets and finances totalled €74.8 million. People who came forward before the deadline will be able to avail of reduced penalties on fees owed. Professionals have already paid a combined €6million in interest, with €3.8million being paid in penalties. Revenue said failure to disclose and pay tax on foreign income and assets will be regarded as deliberate tax evasion. A large number of people who made disclosures, alongside the size of the sums of money involved, will re-focus Revenue’s attention on off-shore funds. Seven people made tax disclosures of more than €1million, with the seven having a combined disclosure of more than €15million.

€74m Amount of assets declared before offshore disclosure deadline on May 1