In the latest of a series of increasingly nebulous Revenue eBriefs, we are reminded of the incentive to Pay and File electronically. In common with all Revenue incentives, it needs to be viewed with some caution.
F(No.2)A08 s96 and Schedule 3 provide that where various returns and payments (including Employer PAYE/PRSI) are made through ROS, then the various deadlines are standardized to the 23rd of the month. This is the authority for the change, not Budget Day announcements nor Revenue regulations. It's somewhat of a grudging incentive, because if the standardized filing and payment date is missed, interest is reckoned as if electronic filing measures had never been introduced.
Not that interest would be the main concern if a taxpayer is in the mandatory electronic filing net. TCA97 s917EA provides for fixed penalties for both failure to file electronically and failure to pay electronically. While the category of taxpayers affected by the mandatory environment for 2009 is reasonably clearcut, Revenue's regulations for those affected on 2010 and following years are far too vague for an instrument that will result in the imposition of penalties. ICAI has written to the Department of Finance seeking clarification of the position, and we will advise as soon as we receive a reply.
For the sake of completeness, we should also mention that F(No.2)A08 s2 also ensures that Income Levy remittances may be settled under the new "23rd day" rule.
eBrief No. 10/2009 is reproduced below:
"Extended date for customers who PAY & FILE electronically
Following the Budget day announcement, a general extension to existing deadlines for filing returns and paying tax where the customers both PAY & FILE electronically has been implemented. This is pursuant to the Regulations implemented by the Revenue Commissioners to introduce mandatory e.filing/e.paying for larger companies and Government agencies in two phases, commencing the 1st January 2009
With effect from the 1st January 2009, the new incentive is available to anyone who makes the relevant returns and associated tax payments via ROS, whether voluntarily or under the new mandatory regime.
The existing time limits have been extended to the 23rd of the month for the following returns and payments.
Corporation Tax
Preliminary Tax, Annual CT1 Return and Balancing Payment.
Relevant Contracts Tax
Monthly RCT 30 Return, Annual Form RCT 35 and RCT due.
Value Added Tax
Vat 3 Return, Annual Return of Trading Details (RTD) and VAT due
Employer PAYE/PRSI
Monthly Form P30, Annual Form P35 and PAYE/PRSI due.
Where a return and associated payment are not made electronically by the new extended deadlines, the extended time limits will be disregarded so that, for example, any interest imposed for late payment will run from the former due dates and not the extended dates."