(1) An individual who, in relation to a year of assessment, may wish to make a claim for an allowance, deduction or relief in relation to income tax shall keep and preserve all such records as may be requisite for the purpose of enabling the individual to make a correct and complete claim.

(2) The records which an individual is required to keep and preserve in accordance with subsection (1) shall be retained by the individual for the longer of the following periods -

(a) where enquiries into the claim or any amendment of the claim are made by an officer of the Revenue Commissioners, the period ending on the day on which those enquiries are treated as completed by the officer, and

(b) a period of 6 years beginning at the end of the year of assessment to which the claim relates.

(3) Subject to subsection (4), an individual who fails to comply with subsection (1) in relation to any claim which is made for a year of assessment, shall be liable to a penalty of €1,520.