Revenue can audit a capital allowances claim for up to four years after the claim has been submitted. It is therefore important to ensure your claim is fully compliant and that there is sufficient evidence and documentation available to support your claim.
KPMG’s Tax Depreciation Group endeavours to prepare all claims on the basis that they should be expected to withstand a rigorous Revenue audit. Our team has vast experience supporting clients through Revenue audits and can provide guidance on the information required to support your claim.
See here for a list of common errors.
Implications of an incorrect claim:
- Under-claiming: You may not have claimed the full amount of allowances / tax savings that you are entitled to.
- Over-claiming: If your claim is audited by Revenue, you may be leaving yourself open to repayment of the underpaid taxes relating to over-claimed allowances, in addition to interest, penalties and, in extreme cases, publication on the list of tax defaulters.