According to Deloitte, tax advisory firm, all monies over €100,000 held in deposit accounts, including those in credit unions, should be declared to the Revenue.

Prior to this, Deloitte said Revenue would not have had details of persons receiving large amounts of deposit interest or similar income including credit union dividends, other than from the tax returns of the persons.

“However, subject to some transitional arrangements, all financial institutions, including credit unions, will now be required to report all interest and similar payments in excess of € 635 pa to Revenue.  This will obviously include credit union dividend payments,” the statement said.

The statement added that the Voluntary Disclosure initiative is aimed at those persons, including individuals and companies, who had in excess of €100,000 in aggregate on deposit in respect of which the financial institution will be making a return, at any time during 2005, 2006 or 2007.

Any such person who has undeclared tax liabilities on such monies is required to file a Notice of Intention to make a qualifying disclosure of a tax default prior to 15th September, with the final calculations, declarations and payment having to be submitted prior to 15th January 2009.

To fully qualify for the benefits afforded under this initiative, the final declaration needs to include details of all other undeclared liabilities, from any source at any time-not just liabilities arising from such deposits.

“Many people may not be aware of this change in reporting for financial institutions–or the fact that monies in all financial institutions, including credit unions, needs to be declared.

Therefore we are recommending all those potentially affected to determine if they should be availing of the voluntary disclosure initiative,” said Ann Dullea, Tax Manager, Deloitte.

“There are significant benefits afforded to those who avail of this including mitigation of penalties, non-publication of details in relation to the payment and non-prosecution in respect of the disclosure,” Ms Dullea said.

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