Important TALC updates, 2 November

Nov 02, 2020

The committee meetings of Main TALC and TALC Direct and Capital Taxes took place late last week. The Finance Bill was the primary focus of both meetings, with significant discussion arising on the changes to domestic exemption rules for transfer pricing purposes and the removal of interest on repayments or refunds to a taxpayer under the tax appeal process. Chartered Accountants Ireland, under the auspicious of the CCAB-I, will make representations to the Department of Finance on these points in advance of the Committee Stage of the Bill. Other important updates provided at the meetings deal with the warehousing of TWSS liabilities and income tax liabilities.

Debt warehousing

Letters previously scheduled to issue to taxpayers on 15 October issue will over the next 2 weeks. The letters will address outstanding tax returns which need to be submitted for the purpose of the scheme, or the letter will acknowledge that the debt warehousing scheme is in place.

Income tax debt warehousing

Revenue confirmed landlords whose tenants are unable to pay rent due to the impact of COVID-19 may be eligible for the warehousing of income tax debt, subject to other conditions being met.

TWSS

Revenue confirmed at a meeting of the Main TALC committee that statements of account will issue to employers following the completion of the TWSS reconciliation process. Revenue will give time to employers to engage after a reconciliation statement has issued to deal with any outstanding issues. In the context of compliance checks, Revenue noted that where some items are outstanding, this should not prevent the reconciliation process from taking place but if the compliance check process ultimately results in a different outcome (e.g. non-eligibility in a worst case scenario) Revenue will have to revisit the reconciliation outcome. The majority of employers (Business and Personal Division cases and a number of MED and LCD also) will have access to warehousing for any debts arising for the reconciliation process.