Comments by the Institute’s Head of Tax, Gearóid O’Sullivan, were included in an Irish Times article on proposed interest tax reforms.

The European Parliament Subcommittee on Tax Matters recently hosted a public hearing on tackling tax obstacles in the Single Market. Experts’ presentations and background documentation can be accessed online on the parliament’s website. 

The latest version of the annual average exchange rates has been updated to include the average market mid-closing rate of various currencies against the Euro for 2025.

The study on the future of EU tax policy harmonisation was presented at last week’s FISC Subcommittee meeting. Focusing on wealth taxation, cryptoassets taxation, digitalisation of tax administration and tax compliance burdens, experts outlined in the study their recommendations for more targeted EU-level coordination which would thereby reduce compliance and enforcement costs. 

The CESOP registration guidelines and guidance has been updated by Revenue to reflect the new agent and advisor e-linking application process and to include information on the procedure for de-registering from CESOP.

The OECD has hosted its sixth Global Forum on VAT to advance international dialogue on efficient, future-ready VAT systems in the context of digital transformation. The importance of global co-ordination on VAT to support trade and investment while safeguarding vital tax revenues was highlighted.  

Revenue has created a new guidance document on the framework, scope, and objectives of the International Cooperation and Capacity Building (ICCD) unit that manages International Cooperation and Technical Assistance and Capacity Building (TACB) requests in Revenue.

Revenue has updated its guidance on the main purpose tests to explain the application of the 'reasonable to consider' test and to clarify how the objective tests should apply.  The guidance outlines that the essence of the ‘reasonable to consider’ test is to assess whether the taxpayer has genuinely considered the tax consequences of a transaction in the same manner as a reasonable taxpayer would do so. The objective ‘main purpose’ test applies to disclosures of a transaction under the mandatory disclosure regime and when assessing a transaction in light of the anti-avoidance provisions under section 811C TCA 1997. When applying a main purpose test, the guidelines outline that it is first necessary to determine if it is objective (what a reasonable man on the street would think) or subjective (what did the taxpayer actually have in mind).  

The OECD has issued a revised version of the Manual on Effective Mutual Agreement Procedures (MEMAP). The updated guidance by the Inclusive Framework on BEPS, is intended to strengthen cross-border tax treaty disputes resolution. 

Revenue has updated its guidance on Residential Zoned Land Tax (RZLT) to reflect the amendments provided for in Finance Act 2025. The main changes relate to the new provisions where landowners request rezoning of land, the exemption where landowners are precluded from developing land, and certain provisions relating to the due date for payment of liabilities in situations where liabilities arise after death.

Revenue has updated its guidance on the exemptions for certain profits specifically those arising from production, maintenance and repair of certain musical instruments and from the microgeneration of electricity by an individual at his or her sole or main residence to reflect an extension of these reliefs to 31 December 2028, as provided for by Finance Act 2025. The guidance on accelerated capital allowances for slurry storage facilities has also been updated to reflect the extension of the scheme to 31 December 2029.

Revenue has issued updated guidance on the taxation of unit trusts for pension schemes and charities – Exempt Unit Trusts (EUTs) to reflect a change introduced by Finance Act 2025. The change clarifies that, for the purposes of section 731(5) TCA 1997, an investment undertaking cannot treat a gain on selling units in an exempt unit trust as fully exempt from capital gains tax.