For businesses operating in Ireland, it is crucial to understand how to effectively handle Level 1 interventions initiated by Revenue. It has recently been announced by Revenue that many businesses are failing to deal with these in the correct manner, which can become problematic for both Revenue and the businesses themselves.
Level 1 interventions are preliminary inquiries that Revenue conducts in order to ensure compliance with tax obligations. This is another effort by Revenue to clamp down on non-compliance and usually takes the form of requests for information, clarification or documents. These requests can be randomly selected, and do not necessarily indicate any discrepancies being found in your information.
Here, we will run through the most important tips for dealing with Level 1 interventions correctly.
- Prompt Response:
Timing is crucial in terms of Level 1 Interventions. Revenue set specific deadlines to avoid potential penalties or the escalation of the issue, which both parties will want to avoid.
Reading the communication from Revenue in detail is vital. Ensure that you fully understand the requests being made of you, before beginning your data gathering or response.
- Professional Advice:
If you are unsure of how to respond, there are a great number of professional entities who are qualified and happy to assist you in order to ensure compliance. EcovisDCA being just one of these.
- Double Check Information:
We would always advise clients to double and triple check the information before sending it on to Revenue, as any discrepancies will be picked up on and may cause issues down the line.
- Honesty is the Best Policy:
In the event of a delay in your data gathering, we would always advise that Revenue be informed ASAP in order to inform them of the issue and to request an extension of the deadline if needed.
Always keep copies of all documents issued as well as your correspondence with Revenue. In the event of any issues, it is always wise to have a paper trail to look back on.
Dealing with these interventions may seem like a time-consuming and difficult task, but by employing the tactics listed above, you can condense the experience into a manageable task which can be completed with ease.