Ireland: Penalties | Research Credit Integrity Alliance

This page sets out the consequences in Irish law of an incorrect claim for the research and development (R&D) corporation tax credit. It covers the special charge on unauthorized claims, the general tax-geared penalties, interest, publication, and the penalties that can apply to a person who helps prepare an incorrect return.

Claimants

The charge on an unauthorized claim

Section 766C(10)(a) of the Taxes Consolidation Act 1997 (TCA 1997) treats a claim for the credit, whether for offset or payment, as a claim for an amount of tax refundable, for the purposes of the penalty provisions in Part 47 and other provisions.1

Where a company makes a claim and it is later found that the claim is not authorized by section 766C, the company may be charged to tax under Case IV of Schedule D, for the accounting period in which the payment was made or the amount surrendered, on four times the amount that was not authorized.1 No loss, deficit, expense or allowance may be set against that charge, and the amount does not form part of the close company surcharge calculation.12

The amount charged is treated as tax due and payable for the purposes of section 1080 and carries interest from the date the amount was paid or offset by Revenue.1

Tax-geared penalties under section 1077F

Section 1077F provides for penalties where a person deliberately or carelessly makes an incorrect return.3 Revenue's R&D manual states that, for the R&D corporation tax credit, a penalty chargeable under section 1077F(3) and (4) is chargeable on amounts offset by the company, amounts paid to the company and amounts unpaid to the company.2 Section 766C(10)(b) provides that, where a claim remains unpaid, the amount of tax that would have been payable is treated as the amount of tax refundable for this purpose.1

The penalty is a percentage of the difference in tax, and it falls where the person cooperates fully and makes a qualifying disclosure.3

Category of default	No cooperation	Full cooperation	Prompted qualifying disclosure	Unprompted qualifying disclosure
Deliberate behavior	100%	75%	50%	10%
Careless behavior with significant consequences	40%	30%	20%	5%
Careless behavior without significant consequences	20%	15%	10%	3%

These are the rates for a first qualifying disclosure; higher rates apply to second and later disclosures within five years.3 "Significant consequences" means the tax underpaid exceeds 15 percent of the tax correctly payable.3 No penalty applies where the total default is less than €6,000 and is not deliberate, and none applies to innocent errors or technical adjustments.3 "Carelessly" means failure to take reasonable care.3

A person who files a return neither deliberately nor carelessly, and later finds that it was incorrect, must remedy the error without unreasonable delay; otherwise the return is treated as deliberately incorrect.3

Interest

Revenue's Code of Practice states that statutory interest applies in all cases.4 For the Case IV charge on an unauthorized R&D claim, interest runs from the date the credit was paid or offset.1

Publication

Section 1086A requires Revenue to publish, each quarter, the name, address and occupation of taxpayers with whom it has agreed certain settlements or on whom a court has imposed a penalty.4 Settlements are not published where a qualifying disclosure is accepted, where the settlement does not exceed €50,000 (tax only), or where the penalty does not exceed 15 percent of the additional tax.4 Revenue's R&D manual notes that publication may apply where an R&D intervention ends in a settlement.2

Preparers and advisers

The R&D credit legislation does not contain a penalty aimed specifically at claim preparers.1 The general provisions of Part 47 apply to any person, whatever their fee basis.

Provision	Who	Consequence
Section 1055	Any person who deliberately assists in or induces the making or delivery of an incorrect income tax or corporation tax return, account, statement or declaration	Penalty of €4,0003
Section 1078(2)(b)	Any person who knowingly aids, abets, assists, incites or induces another to make or deliver, knowingly or wilfully, an incorrect return, statement or accounts	Criminal offence3
Section 1078(1A)	Any person knowingly concerned in, or reckless as to facilitating, fraudulent evasion of tax by another	Criminal offence3
Section 1077F(11)	Any person who deliberately or carelessly provides an incorrect document of a kind listed in Schedule 29	€3,000 if careless; €5,000 if deliberate3

Revenue's guidelines for agents state that on conviction under section 1078 the penalty can be €5,000 on summary conviction, up to €126,970 on indictment, or imprisonment, or both.5 Revenue's Code of Practice states that, in exceptional cases where a tax practitioner actively engages with a client to assist in tax evasion or avoidance, Revenue will seek a penalty under section 1055 and/or press for prosecution under section 1078(2).4

Revenue may also refer an agent to a professional body under section 851A where the agent's work does not meet that body's standards, but only in the most serious cases.4

Where responsibility lies

The tax-geared penalties, the Case IV charge and interest fall on the company. Revenue's Code of Practice states that a taxpayer cannot devolve the responsibility of making a correct return to an agent, and that the test of reasonable care asks whether a taxpayer of ordinary skill and knowledge, properly advised, would have foreseen the prospect of an underpayment.4

Sources

Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 29, section 766C, subsection (10). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part29.pdf (accessed 11 October 2026). Back
Revenue Commissioners, Tax and Duty Manual Part 29-02-03, Research and Development (R&D) Corporation Tax Credit (last updated April 2026), sections 8.7 and 8.8. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-29/29-02-03.pdf (accessed 11 October 2026). Back
Revenue Commissioners, Notes for Guidance, Taxes Consolidation Act 1997, Finance Act 2025 edition, Part 47, sections 1055, 1077F (subsections (1) to (12)) and 1078(1A) and (2). https://www.revenue.ie/en/tax-professionals/documents/notes-for-guidance/tca/part47.pdf (accessed 11 October 2026). Back
Revenue Commissioners, Code of Practice for Revenue Compliance Interventions (effective 1 May 2022), sections 1, 1.5.3, 1.5.4, 4.6.2, 5.1 and 5.2. https://www.revenue.ie/en/tax-professionals/documents/code-of-practice-revenue-compliance-interventions.pdf (accessed 11 October 2026). Back
Revenue Commissioners, Tax and Duty Manual Part 37-00-04b, Guidelines for Agents or Advisors acting on behalf of taxpayers (last reviewed September 2026), section 3. https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-37/37-00-04b.pdf (accessed 11 October 2026). Back