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Revenue audits

Revenue audits

What a Revenue audit of capital allowances / tax depreciation entails, how likely you are to be audited, and how to prepare for it

Revenue can audit a capital allowances claim for up to 4 years after submission.

Revenue can audit a capital allowances claim for up to four years after the claim has been submitted. It is therefore important to ensure your claim is fully compliant and that there is sufficient evidence and documentation available to support your claim.

KPMG’s Tax Depreciation Group endeavours to prepare all claims on the basis that they should be expected to withstand a rigorous Revenue audit. Our team has vast experience supporting clients through Revenue audits and can provide guidance on the information required to support your claim.

See here for a list of common errors.

Implications of an incorrect claim: 

  • Under-claiming: You may not have claimed the full amount of allowances / tax savings that you are entitled to. 
  • Over-claiming: If your claim is audited by Revenue, you may be leaving yourself open to repayment of the underpaid taxes relating to over-claimed allowances, in addition to interest, penalties and, in extreme cases, publication on the list of tax defaulters. 

Revenue audit FAQ

What does a capital allowances / tax depreciation audit entail?

A capital allowances audit is an examination of compliance with the relevant capital allowances legislation and consists of a thorough review of the claim from a construction, financial and tax technical perspective.

Claimants must ensure that they maintain records to back up their claim. KPMG can help ensure that you are best placed to support your claim in the event of an audit and that you have the necessary documentation in place.

How likely am I to be audited?

As a matter of course, we advise our clients that it is most likely a case of “when” not “if” your claim will be audited by Revenue.

KPMG can advise you on your capital allowances claim and on the best way to be prepared for an audit.

What should I do to be best prepared for an audit?

The best way to prepare for a Revenue audit is to make sure that your claim has been compiled in accordance with the appropriate legislation, e-briefs, tax briefings and best practice.

It is critical that you review whether the claim is likely to meet Revenue’s requirements under audit and consider whether appropriate action should be taken. In this regard, it is advisable to seek professional advice. 

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