7.3. Time Limits for Recovery

As a general rule the tax authority can go back three years for the recovery of underpaid taxes.

So, for amounts due in 2007, the tax authority have until the end of 2010.

In the case of local taxes and rates the recovery period is one year.

If tax authority themselves make an error then they can recover underpaid tax for up to a further year following submission of tax return, which may be increased to a further two years in the case of inheritance tax, or where there is evidence of fraud.

However, in all cases where there has been non declaration, in gift or inheritance tax cases, or where legal proceedings are taken, then the recovery period has recently been reduced from ten to six years for procedures arising after June 2008.