Failures May Cost Farmers Thousands Of Euros – IFA
IFA Roads Project Team Chairman Jer Bergin has strongly criticised accountants for their failure to make adequate capital gains tax declarations on behalf of landowner clients affected by CPO’s.
In recent months the Revenue Commissioners have commenced a review of tax settlements made for compensation received when land is compulsorily acquired for road building. From a sample of 50 cases, over 85% of farmers were required to make further payments.
“It is inexcusable that professional accountants can get it so badly wrong. Capital gains tax is a self declaration tax and farmers depend on the professional expertise of their accountant when filing returns. Farmers now find themselves in a position where in some cases they have to borrow money to make these additional payments to Revenue. This is a poor reflection on the accountants involved, with 85% of cases reviewed by Revenue requiring further payments. Farmers should seek independent legal advice in situations where additional payments are sought by Revenue.”
Jer Bergin re-iterated IFA’s view that there should be a consolidation relief from Capital Gains Tax where a landowner purchases property to replace what is taken through CPO.
