Medical consultants pay extra €23m to Revenue

The Revenue Commissioners’ investigation of medical consultants brought in an extra €23 million in unpaid taxes and penalties last year.

New figures from Revenue show the two-year investigation into the financial affairs of consultants has yielded €39 million so far in taxes and penalties.

Revenue’s “medical consultants compliance programme” was originally centred on Dublin, but it was extended to the rest of the country.

It brought in €15.97million in 2014, and the amount collected last year rose by 44 per cent to €23 million.

A total of 639 consultants have been investigated. Nearly 300 cases have been closed, and investigations are continuing in 350.

The detailed figures show that last year in 170 cases Revenue obtained €19.89 million in unpaid tax, €1.85 million in interest payments, and €1.3 million in penalties from consultants.

In 119 cases in 2014 the tax authorities received €12.86 million in unpaid tax, interest of €1.34 million and penalties of €766,611.

A spokeswoman for Revenue said the practices investigated included the claiming of personal expenses against professional income; insufficient or no supporting documentation to support large expenses claimed as tax deductions; excessive or incorrect tax deductions claimed in relation to salaries or pensions of spouses and children; and the deferring of professional income to later tax periods, thus delaying taxation.

The spokeswoman said Revenue had also investigated the purported disposal of goodwill by consultants to their controlled companies and cross-charges made between consultants and controlled companies that lacked any commercial basis.

“Revenue is satisfied that the medical consultants compliance programme identified, addressed and is continuing to address relevant risks in respect of the tax affairs of medical consultants.”

Figures provided under the Freedom of Information Act show 11 consultants have paid settlements of between €250,000 and €300,000 each and 40 have paid between €150,000 and €250,000 each.

Revenue said remaining investigations into 350 consultants were at various stages of completion.