Revenue’s tougher line on outstanding tax liabilities this year has cost one east coast farmer over €600 in fees to the sheriff.

The livestock farmer, who did not wish to be named, filed his tax returns during the summer. Having paid preliminary tax last October for the tax year 2021, his outstanding balance was in excess of €15,000.

The balancing tax payment was usually paid automatically from the farmer’s account in late autumn. As a consequence, he took no notice of a demand letter he received from the Revenue in late summer.

However, when he received a letter from the sheriff around a month later, he paid up the outstanding balance immediately.

Interest

At this stage Revenue was also seeking interest and penalties in excess of €1,000.

In addition, the sheriff was seeking costs of over €600.

Revenue eventually waived the charge for penalties and interest, the livestock farmer told the Irish Farmers Journal.

However, the farmer had to pay the full amount demanded by the sheriff.

The farmer also had to pay close to €20,000 in preliminary tax for 2022.

Accountants have urged farmers to pay their taxes on time this year as Revenue is taking a firmer line on outstanding liabilities.

They have warned clients that Revenue was sticking to the “letter of the law” on due dates for taxes, with the threat of outstanding payments being handed over to the sheriff for collection far more quickly this year.

Less flexible

While Revenue was very accommodating over the last two years during COVID-19, accountants said tax rules were being applied in a far stricter and less flexible fashion this year.