Landowners who reaped bonanza payments from compulsory purchase orders (CPO) in the Celtic Tiger years can expect a call from the Revenue, a local tax consultant has warned.
“Considerable 6 and 7 figure sums were paid out to landowners in recent years when their land was bought under CPOs to build roads and other infrastructure projects. The tax authorities have now started auditing people who received CPO payments to see if they have paid the full amount of capital gains tax due,” said Niall Doherty.
Doherty said that whilst some taxpayers may have paid the Capital Gains Tax due in full, others may have returned less than the full amount of Capital Gains Tax due.
Additionally, not all taxpayers will have settled the Capital Gains Tax liability on time, and will be exposed to interest on late payment of tax. This interest can mount quite rapidly.
Said Mr Doherty: “Nationally, it is believed that 50 audits have already been conducted, with only seven having resulted in a zero tax liability. The investigations have begun in Carlow, Kilkenny, Kildare, Laois, Meath, Tipperary, Waterford, Wexford and Wicklow.
“The Revenue has written to the roads managers in all of these counties looking for details of all CPO payments made in recent years. It is likely that given the large number of cases that have resulted in settlements that all Revenue Districts will be reviewing CPOs in the near future.”
Niall Doherty Tax Consultants have significant experience in planning for CGT on CPO’s and they are available to meet with anyone who would like to discuss their Capital Gains Tax transactions. Niall Doherty Tax Consultants are located at McKendrick Place Pearse Road Letterkenny.
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