Important TALC updates

Sep 14, 2020

Revenue provided updates to the CCAB-I at a recent TALC meeting which include the prioritisation of tax clearance applications, the suspension of RCT bulk rate reviews for September and the TWSS compliance checks.

Almost 22,000 applications for tax clearance have been made since mid-August, with 40 percent of those applications relating to the EWSS.  Revenue granted 74 percent of tax clearance applications immediately and others were rejected due to issues including tax debt of more than €10,000, or more than three outstanding VAT3 returns etc. Revenue staff are prioritising tax clearance application providing responses within one to two days.  Revenue confirmed that VAT Return of Trading Details is not currently a clearance factor, but these tax returns should be filed on time.

Revenue will not be completing a bulk rate review for RCT in September and noted that taxpayers should self-review to apply for a RCT rate change.

Revenue confirmed that 20,000 TWSS compliance checks have been conducted to date, with over 10,000 cases closed. TWSS compliance checks will continue on a rolling basis to the end of the year. Revenue noted a high level of compliance but highlighted worrying trends in a small number of cases for instances of payroll manipulation and invoice deferral for activity in Quarter Two of 2020.  Taxpayers can make disclosures under the Code of Practice for Revenue Audit and other Compliance Interventions.

A number of employers have sought to fully reverse out of the TWSS and Revenue are allowing such employers to repay wage subsidy claims and account for payroll taxes before 15 October. If the TWSS is repaid and tax is settled by 15 October, such employers will not be published as having availed of the scheme. Details are set out on page 11 of Revenue’s Guidance on the Operational phase of the COVID-19: Temporary Wage Subsidy Scheme which commenced on 4 May 2020.