Amid the headlines about tax cuts and spending increases in today’s Irish Budget 2026, one small paragraph in the Department of Finance’s “Budget 2026 Tax Policy Changes” paper caught our attention.
Tucked away near the end, under the innocuous heading “Other Taxation Measures,” it reads:
“Compliance: Revenue will conduct a range of targeted compliance management activities in 2026. It is expected that additional Exchequer receipts will arise from increased taxpayer compliance in a range of economic areas.”
It’s a short sentence, but it speaks volumes.
What this really means
When the Department of Finance talks about “targeted compliance management,” it usually signals one thing:
Revenue audits and increased scrutiny are on the way.
In other words, rather than introducing new taxes, the Government plans to raise money by ensuring that individuals and businesses pay the correct amount of tax under existing rules.
That means Revenue will be more active in reviewing tax returns, cross-checking data, and following up on inconsistencies in 2026.
What areas Revenue is likely to target in 2026
Based on Revenue’s current priorities and data-driven audit systems, we expect a sharper focus in the following areas:
1. Rental income & landlord compliance
- Ensuring all rental income, including Airbnb, short-term and overseas rentals is declared.
- Reviewing expense claims for accuracy (interest, repairs, wear-and-tear, etc.).
- Checking compliance with Rent Tax Credit and Rent a Room Relief claims.
2. VAT & eCommerce Businesses
- Verifying VAT registrations and returns for online traders and service providers.
- Auditing One Stop Shop (OSS) and Import One Stop Shop (IOSS) filings.
- Checking VAT recovery on mixed-use expenses and imports.
3. Employment taxes & benefits
- Reviewing company-provided benefits (cars, medical insurance, stock options).
- Ensuring correct PAYE and PRSI treatment of directors and contractors.
- Following up on mismatches between payroll submissions and personal tax returns.
4. Small company compliance
- Scrutinising director’s loans, personal expenses, and company credit card use.
- Checking R&D and Knowledge Development Box (KDB) claims.
- Reviewing dividend distributions and close company surcharges.
5. Self-employed & professional services
- Comparing declared income to lifestyle and expenditure data.
- Analysing large fluctuations in income or expense claims year-on-year.
- Cross-referencing third-party data (e.g. payment platforms, licensing bodies).
6. Capital taxes
- Ensuring correct reporting of gifts and inheritances for CAT.
- Reviewing property transfers and valuations for Capital Gains Tax.
- Checking for undeclared disposals of cryptoassets and investments.
7. Foreign income & assets
- Using data from international exchange agreements (e.g. CRS) to identify undeclared offshore accounts, pensions or investments.
- Reviewing foreign rental or employment income among Irish-resident taxpayers.
What you should do now
If you’re a business owner, landlord, company director, or self-employed professional, the message is clear:
2026 will bring a sharper Revenue focus on compliance.
Now is the time to:
- Review your 2024 and 2025 filings for inconsistencies or missed disclosures.
- Reconcile your records with bank statements and accounting software.
- Ensure that expenses are properly documented and justified.
- Seek advice before filing, not after a Revenue letter arrives.
At Malone & Co. our tax specialists help clients stay compliant while optimising their tax position. We can perform a Revenue Readiness Review to identify and correct any issues before they become costly problems.
Final thought
While Budget 2026 headlines will focus on tax cuts and spending plans, the real story for many taxpayers may lie in that quiet line about “increased compliance activity.”
It’s a reminder that Revenue’s data analytics and audit programmes are becoming ever more sophisticated and that being proactive is always cheaper than being reactive.
For tailored advice on staying compliant and audit-ready in 2026, contact Malone & Co. trusted accountants and tax advisors in Ireland.
