Tax department discovers ‘error’ and demands €3.5 million from 10,000 taxpayers

The AT tax department has discovered an error in the way income tax calculations were made FOUR YEARS AGO, and is now ‘demanding’ up to €3.5 million back from 10,000 tax payers.

These will all be taxpayers who inadvertently benefited from income tax ‘changes’ in 2015 when they didn’t actually qualify for them.

Explains the Finanças portal, they are people who “started a business or professional activity in 2014 and were taxed in 2015 on the ‘simplified scheme’ but earnt income from services (category B) without simultaneously recording income from dependent employment and/ or pensions (categories A and/ or H, respectively)”.

If the explanation leaves anyone befuddled, they may be relieved to know that letters advising them of any monies outstanding have already gone out.

Say reports, the 10,000 inadvertent debtors will be able to pay back in instalments if necessary.

natasha.donn@algarveresident.com