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Taxman raps Donegal County Council
17.06.10
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DONEGAL County Council
has made a tax settlement to the Revenue
Commissioners after an audit found the local
authority had under-declared PAYE and PRSI to the
tune of €547,775. The Council made an overall
settlement of €799,928, including penalties and
interest of €252,153 following the Revenue audit.
The areas of non-compliance related to fixed travel
and subsistence allowances for certain site
supervision and outdoor staff for the financial
years 2007/2008. Donegal County Council yesterday
released a statement explaining how the
irregularities came about. It said the
non-compliance arose due to a “change in policy,
custom and practise” that saw a requirement to
specifically identify individual transactions
whereas, prior to this, a global allowance, based
upon an average period, was used. Donegal County
Council said all relevant travel and subsistence
allowances for site supervisory and relevant staff
were subsequently amended from January 2009,
limiting the liability to the two years in question. |
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“It should be
noted, therefore, that the majority of the expense
reimbursement schemes operated by the Council, were
found to be compliant - most of these expenses are
non-taxable - with the exception of those now |
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highlighted,”
yesterday’s statement continued. The full breakdown
of the €799,928 settlement was: €547,775 in taxes,
€87,821 in interest and €164,332 in penalties.
Councillors were informed of the huge settlement at
their monthly meeting last February. The local
authority added yesterday that it had now put in
place processes to reduce the likelihood of
non-compliance arising in the future. These
processes include establishing a more rigid process
in implementing Revenue circulars and advice notes
and an upgrade of the financial management system. |
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