Returns that are submitted late but with two months of being due, a 5% penalty surcharge is added. The 5% charge is limited to a maximum cap of EUR 12,695
In cases where a return is more than two months late, a 10% surcharge is applied, subject to a maximum cap of EUR 63,845
In addition to the surcharges imposed for late filing, late filing can greatly impact an enterprises use of losses to offset profits, including:
- Reduction in use of available losses by 25%, up to a maximum cap of EUR 31,740 if return filed within two months of being due.
- Reduction in use of available losses by 50%, up to a maximum cap of EUR 158,715 if return filed more than two months late.
- Same reduction amounts for claims to surrender/receive losses to/from a group company.
Underpayment of tax will result in interest charges at a rate of 0.0219% per day for each day the payment is overdue (equivalent to 7.99% per annum).
In addition to the penalties outlined above, the Irish tax authorities charge penalties for vary degrees of negligence. The penalties are found in three categories of negligence on the part of the taxpayer. These categories are:
- Insufficient care (20% of tax underpaid);
- Careless behavior (40%); and
- Deliberate behavior (100%).
These penalties can be decreased with the cooperation and by disclosure of the taxpayer. Severe infractions may be subject to criminal prosecution.