Revenue has published a new Tax and Duty Manual to provide guidance for Payment Service Providers (PSPs) who have an EU Cross-Border Payments (CESOP) reporting obligation in Ireland. The manual includes: guidance on the registration process and procedures for resident and non-resident PSPs for the purpose of CESOP reporting in Ireland, an outline of the process for filing CESOP reports in Ireland, and an outline of the technical specifications required for filing CESOP reports in Ireland. The registration facility for CESOP filers will open in Ireland on 1 February 2024.

Revenue has published a new Tax and Duty Manual – Requests for Transfer Pricing Documentation, which documents Revenue’s operational policy for requesting transfer pricing documentation as part of its risk appraisal process. According to the detail of the TDM, this process seeks to ensure that a consistent approach is applied to all transfer pricing documentation requests and that such requests appropriately fit within Revenue’s Compliance Intervention Framework.

Revenue has updated the Tax and Duty Manual which provides guidance to taxpayers who wish to continue to rely on an opinion or confirmation issued by Revenue in the period 1 January and 31 December 2018, in respect of a transaction, period or part of a period, on or after 1 January 2024. Application for renewal or extension of such an opinion or confirmation is required to be made by a taxpayer on or before 29 March 2024.

Revenue has updated the Tax and Duty Manual which provides guidance on the Charities VAT Compensation Scheme. The updated guidance reflects the increase to the annual capped amount available to be paid out of the Charities VAT Compensation Scheme fund. With effect from January 2024, the annual fund is set at €10 million.

Revenue has published a new Tax and Duty Manual to provide guidance on the income tax exemption of certain profits from the microgeneration of electricity by an individual at their sole or main residence. Section 216D TCA 1997 provides for an exemption from income tax, USC and PRSI for certain profits arising to a qualifying individual from the microgeneration of electricity. For tax years 2022, 2023 and 2024 the exempt amount is €200, a qualifying individual is not required to declare such profits in an income tax return, any amount in excess of the exempt limit is required to be declared as income. Finance Bill (No. 2) 2023 includes a proposal to amend section 216D TCA 1997 by increasing the amount of profits exempt from income tax, from €200 to €400 per year and extending the scheme by one year to the end of 2025. In this regard, the manual will be updated following enactment of the Bill.

A reminder to readers that Finance Bill (No.2) 2023 introduced an amendment to the collection and reporting requirements for taxes related to share options. The taxation of a gain realised on the exercise, assignment or release of share options no longer falls under individual self-assessment. Instead, taxes must be accounting for through the payroll system.  This means that employers will be responsible for collecting income tax, USC and PRSI from employees on share option gains and remitting those taxes to Revenue as part of the payroll process. This treatment will apply to gains realised on or after 1 January 2024.

From 1 January 2024, the upper age limit for exemption from PRSI is being raised from 66 to 70 years for employees, their employers and the self-employed. From that date, all employees and self-employed persons aged between 66 and 70, and born after 1 January 1958, will continue to be liable for PRSI until they have been awarded the State Pension (Contributory). For those who have already reached age 66 by 1 January 2024, their PRSI position will be unaffected by the changes. In conjunction with these changes, from 1 January 2024, an individual will be able to draw their State Pension (Contributory) between ages 66 and 70, providing them with an opportunity to improve their contribution record at date of drawdown. Further information is available here.

The Institute, under the auspices of the CCAB-I, has responded to the public consultation on the roadmap for the introduction of a participation exemption to Irish corporation tax. This consultation focuses primarily on the dividend participation exemption. The key message remains that the CCAB-I supports the introduction of a participation exemption for both foreign dividends and foreign branch profits. The main points from our response are: In recent years, measures introduced under the EU Anti-Tax Avoidance Directive (ATAD), OECD’s Base Erosion and Profit Shifting (BEPS) initiative, and the EU Minimum Tax Directive are aligned with a territorial system of taxation (of which a participation exemption for dividends is one part). We recommend careful consideration of the method of relief, i.e. whether the optimum relief is by way of an exemption (similar to section 129 Taxes Consolidation Act (“TCA”) 1997) or as a deduction from total profits. Our initial sense is that a deduction will be preferable when considered in light of the EU Minimum Taxation Directive and the Interest Limitation Rule. We recommend that the relief is drafted to provide broad optionality. Ideally, we recommend that taxpayers can opt to apply the rules on a distribution-by-distribution basis. We recommend that the exemption should apply by default with the option to claim double taxation relief on a distribution-by-distribution basis. We strongly support the formation of a committee under the umbrella of the Main Tax Administration Liaison Committee (TALC). In the context of the implementation of the EU Minimum Taxation Directive, the TALC BEPS Sub-Committee has proven the benefit for all stakeholders in addressing technical, legal, accounting and commercial uncertainties.

Following the signing of a Commencement Order by the Minister for Finance last week, all employers will be required to make returns of certain non-taxable benefits and expenses in real-time under the Enhanced Reporting Requirements (ERR) from 1 January 2024. Revenue has however advised that “a service for compliance approach will be taken until the 30 June 2024”. During this period, Revenue will not be operating any compliance programmes in relation to the ERR and will not seek to apply any penalties for non-compliance. Since the measures were first announced in last year’s Finance Act, the Institute, under the auspices of the CCAB-I, has consistently raised our members’ concerns with the new requirements. In addition to several submissions to Revenue, we wrote to the Minister for Finance on two separate occasions (here and here), seeking the abolishment of the real-time reporting requirement and more recently a delay to the implementation date. While disappointed with last week’s announcement, we urge members to ensure they are enabled to commence reporting under ERR from 1 January 2024. For the avoidance of doubt, the non-taxable benefits which will be reportable in 2024 are: Non-taxable reimbursements of travel and subsistence Benefits provided under the small gift exemption The remote working daily allowance. There are three ways employers can choose to report: Direct reporting through a software package ROS File upload ROS Online Form. The video for converting CSV files to JSON format had just been uploaded to the ERR hub page on the Revenue website. We understand the regulations underpinning the legislation will be published shortly and will include details on penalties for non-compliance.  You can find more information on the measure on Revenue’s website and we will keep you up to date on developments in Tax News.

The OECD has published the seventh annul peer review report on exchange of information on tax rulings. The 2022 report indicates that over 54,000 exchanges of information took place in respect of over 24,000 tax rulings across the 131 jurisdictions profiled. Of the 131 jurisdictions included in the report, 100 are fully aligned with BEPS Action 5.  

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.  All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. 

This month’s tidbits cover updated guidance in several areas and the publication of the Administrative Burdens Advisory Board’s 2022/23 report.   

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available and the fourth meeting of the EU-UK Parliamentary Partnership Assembly took place recently in London. As the reimbursement scheme which allows traders to reclaim duty on goods moving into Northern Ireland which do not subsequently move into the EU is now approaching six months old, we would like to hear your feedback on how the scheme is operating.  Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:-  Search the register of customs agents and fast parcel operators;  Known error workarounds for the Customs Declaration Service (CDS);  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Manage your email address for the Customs Declaration Service;  Importing SPS controlled goods that interact with ALVS;  Attending an inland border facility; and  Car wiring kits for motor vehicles (Tariff notice 13).   

This week, we bring you news of guidance on the new UK reporting rules for digital platforms which come into operation from 1 January 2024 and HMRC has also published new guidance on the VAT treatment of local authority leisure services. The most recent notes of HMRC’s Guidance Strategy Forum are available and the Public Accounts Committee has recently released its report “Progress with Making Tax Digital”, which is highly critical of the programme. HMRC has also contacted us about work which has been ongoing with the Advertising Standards Authority specifically in relation to some repayment agents.  UK reporting rules for Digital Platforms  From 1 January 2024, UK digital platform operators will be required to report details of their sellers to HMRC. Last month HMRC published detailed technical guidance in its International Exchange of Information Manual (part IEIM900000) which aims to assist platform operators in complying with the new rules.  UK resident platform operators may also be required to report under the OECD’s DAC 7 rules which took effect from 1 January 2023. However, DAC 7 contains a provision to prevent double reporting by platforms that are within the scope of both DAC7 and the UK’s new reporting rules. As a result, UK platforms can report directly to HMRC rather than reporting to an EU Member State but only if that Member State has signed up to exchange information with the UK. If that is the case, the platform only needs to report to HMRC from 1 January 2024 as HMRC will subsequently exchange information with the relevant EU Member State’s tax authority.   Note that as DAC 7 has been in force since 1 January 2023, UK resident platforms are still required to report transactions 1 January 2023 and 31 December 2023 under DAC7, i.e. to the relevant EU Member State.   New guidance on the VAT treatment of local authority leisure services   HMRC has published new guidance for local authorities that deals with the treatment of supplies of sport/leisure services. According to an email from HMRC, the guidance has been developed in conjunction with local authorities via The Chartered Institute of Public Finance and Accountancy and other local authority VAT forums.   HMRC therefore says that the guidance achieves the aim of giving local authorities the information they need to implement the recent change in treatment of their supplies of sport/leisure services.   Advertising Standards Authority joint work with HMRC   HMRC has been working with the Advertising Standards Authority (“ASA”) to publish an enforcement notice related to misleading adverts by some repayment agents. The enforcement notice which published earlier this month on 5 December 2023, was jointly-issued with HMRC and provides guidance to promoters of tax repayment agent services. The notice applies across all media which targets UK consumers and sets out that those who fail to comply will be subject to sanctions.   This was followed by the publication of a Press Release which provides more information on the ongoing collaborative work between HMRC and ASA in this area. 

30 December 2023 is the deadline for submitting 2022/23 self-assessment tax returns online if the taxpayer wishes to avail of coding out for tax debt of less than £3,000.  You can pay your self-assessment bill through your PAYE tax code (known as coding out) if all of the following apply:-  you owe less than £3,000 on your tax bill;  you already pay tax through PAYE, for example you’re an employee or get a company pension; and  you submit your paper tax return by 31 October or your online tax return online by 30 December. 

The Dept. of Enterprise Trade and Employment (DETE) has announced that the Minister has further extended the interim period found in the Companies (Miscellaneous Provisions) (Covid-19) Act 2020. Readers may recall that the provisions, brought into force during the pandemic, permit the holding of virtual meetings, including AGMs. The provisions have been further extended to 31 December 2024. Click here to read details of the extension in the DETE press release. The extension is welcome for companies and co-operative societies and will provide for consistency into 2024.The extension signals that DETE is positively disposed to bringing forth permanent legislative provisions in relation to virtual and hybrid meetings. Readers may recall the DETE consultation earlier this year seeking views on putting virtual meetings on a permanent footing. Click here to read the Institute’s response to DETE which supported legislating for including the virtual meeting format. * This information is provided as resources and information only and nothing in these pages purports to provide professional advice or definitive legal interpretation(s) or opinion(s) on the applicable legislation or legal or other matters referred to in the pages. If the reader is in doubt on any matter in this complex area further legal or other advice must be obtained. While every reasonable care has been taken by the Institute in the preparation of these pages, we do not guarantee the accuracy or veracity of any resource, guidance, information or opinion, or the appropriateness, suitability or applicability of any practice or procedure contained therein. The Institute is not responsible for any errors or omissions or for the results obtained from the use of the resources or information contained in these pages.      

Following the signing of a Commencement Order by the Minister for Finance yesterday, all employers will be required to make returns of certain non-taxable benefits and expenses in real-time under the Enhanced Reporting Requirements (ERR) from 1 January 2024. Revenue has however advised that “a service for compliance approach will be taken until the 30 June 2024”. During this period, Revenue will not be operating any compliance programmes in relation to the ERR and will not seek to apply any penalties for non-compliance. Since the measures were first announced in last year’s Finance Act, the Institute, under the auspices of the CCAB-I, has consistently raised our members’ concerns with the new requirements. In addition to several submissions to Revenue, we wrote to the Minister for Finance on two separate occasions (here and here), seeking the abolishment of the real-time reporting requirement and more recently a delay to the implementation date. While disappointed with yesterday’s announcement, we urge members to ensure they are enabled to commence reporting under ERR from 1 January 2024. For the avoidance of doubt, the non-taxable benefits which will be reportable in 2024 are: Non-taxable reimbursements of travel and subsistence Benefits provided under the small gift exemption The remote working daily allowance. You can find more information on the measure on Revenue’s website and we will keep you up to date on developments in Tax News.

Welcome to this edition of Technical Roundup. In recent developments, the Dept of Enterprise, Trade and Employment has published the Digital Services Bill 2023 which will provide for the full implementation in Ireland of the EU Regulation on a Single Market for Digital Services and the International Auditing and Assurance Board issued the new International Standard for the Audits of Less Complex Entities on 6 December 2023. Read more on these and other developments that may be of interest to members below. Financial Reporting The Financial Reporting Council (FRC) has issued FRED 85 Draft amendments to FRS 101 Reduced Disclosure Framework – 2023/24 cycle. Every year, the FRC carry out a review of the FRS 101 standard to consider amendments made by the International Accounting Standards Board (IASB) to their standards, and whether such changes should result in an amendment to FRS 101. In FRED 85, the FRC are proposing minor changes to FRS 101 to ensure consistency with IAS 1 Presentation of Financial Statements. The FRC has published an insight report “Structured digital reporting – 2023 insights” which highlights some areas for focus for companies when producing their annual financial report in a structured digital format under FCA Rules. This includes some examples of best practice in the areas of tagging, usability & design and process. The FRC has issued version 2.0 of Technical Actuarial Standard 300: Pensions (TAS 300). The IFRS Foundation has released its November 2023 monthly news summary, which summarises their news items and events during the month. The IFRS Interpretations Committee (IFRIC) has issued its November 2023 update which summarises decisions made by the Committee in its public meetings. This includes details of some tentative agenda decisions on climate-related commitments under IAS 37 and disclosure of revenues and expenses for reportable segments under IFRS 8. The International Accounting Standards Board (IASB) has published a summary of its project on extractive activities which considered whether to amend or replace IFRS 6 Exploration for and Evaluation of Mineral Resources. The IASB has published a webcast which provides some insight into the forthcoming IFRS Accounting Standard for Subsidiaries. The standard is expected to be issued in the first half of 2024. EFRAG, the European Financial Reporting Advisory Group, has published its final comment letter in response to the IASB’s Exposure Draft- Annual Improvements – Volume 11. The UK Endorsement Board has also published its comment letter and feedback statement on the Exposure Draft. EFRAG has published its November 2023 update which summarises public technical discussions held and decisions taken during the month. The Pillar Two tax rules that will apply to companies with consolidated revenue over €750m are contained in the Finance No2 Bill that is making its way through the Oireachtas. In relation to the financial reporting implications of the Pillar Two tax rules, IAS 12 Revised and FRS 102/101 revised now set out financial reporting disclosure requirements for those companies. Assurance and Auditing The Financial Reporting Council (FRC) has published its annual inspection findings for Tier 2 and Tier 3 audit firms and a number require ‘significant improvement’. The findings outline that of the audits reviewed, 38% required only limited improvements, 24% required more than limited improvements and a further 38% required significant improvements. The FRC identified deficiencies in the audit of judgements and estimates, and going concern, both of which require audit teams to demonstrate robust professional scepticism. Firms must demonstrate improvement including investing in their audit methodology, human resources and audit quality functions, learning from things that went wrong or went well, and seeking to embed a culture that recognises and prioritises audit quality. The FRC is taking a number of actions to improve resilience and competition in the PIE audit market. The FRC has announced their areas of focus for 2024/25. The includes priority sectors are: Construction and Materials Food Producers Gas, Water & Multi-utilities Industrial Metals and Mining Retail These are for both corporate reporting reviews and audit quality inspections. ISA for LCE Following approval at their September 2023 meeting, the IAASB issued the new International Standard for the Audits of Less Complex Entities on 6 December 2023. Where it is adopted, or permitted, the standard is effective for audits of financial statements for periods beginning on or after December 15, 2025, (i.e. 2026 calendar year audits) with early adoption being permitted and encouraged. The standard has not yet been adopted for use in Ireland or the UK. The standard can be downloaded from the IAASB website. Sustainability The International Sustainability Standards Board (ISSB) have been providing updates on their activities at COP 28. These include; Their planned future cooperation with the International Organization for Standardisation towards effective communication about sustainability-related risks and opportunities. Details of the growing number of Organisations and jurisdictions who have committed to advancing the adoption or use of the ISSB’s climate-related reporting at a global level. An announcement that Emmanuel Faber will continue as ISSB chair until the end of 2027. Details of the progress made in advancing global sustainability disclosures since the establishment if the ISSB was announced at COP 26. The International Sustainability Standards Board has provided details of some new and updated resources coming into effect on 1 January 2024. These are intended to help companies apply the ISSB Standards IFRS S1 and IFRS S2. The IFRS Foundation has launched the IFRS Sustainability Knowledge Hub which seeks to support users of the ISSB standards. This is intended to help auditors, investors, regulators and stakeholders as they begin their reporting journey under the ISSB standards. IFAC have announced plans to revise the International Education Standards to bring greater focus to sustainability reporting and assurance, given the evolving role of accountants in the area of sustainability. Sanctions/Anti-money laundering The UK’s National Crime Agency and National Economic Crime Centre have issued an alert to financial institutions and other members of the UK regulated sector warning that Russia is trying to procure UK sanctioned goods through intermediary countries.  Sanctions imposed on Russia as a result of its invasion of Ukraine have had a significant impact on its ability to purchase products, including military supplies, on international markets. The alert provides information to UK businesses on common techniques suspected to be in use to evade sanctions on the export of high-risk goods, which Russia is using on the battlefield in Ukraine. The European Council and Parliament have reached a provisional agreement on creating a new European authority for countering money laundering and financing of terrorism (AMLA) - the centrepiece of the anti-money laundering package, which aims to protect EU citizens and the EU's financial system against money laundering and terrorist financing. Other News The Credit Union (Amendment) Bill 2022 has recently been sent to the President for signature. Click here for a government press release where the Minister for Financial Services, Insurance and Credit Unions welcomed the proposed amendments to the legislation which she said aim to bring about significant reforms for the credit unions sector in Ireland and represents a very significant piece of legislation that will have far-reaching positive implications for the credit union sector in the years to come. In other credit union news, the Central Bank of Ireland has issued their December Credit Union News publication which includes a reminder to all credit unions on key financial  considerations and other matters for consideration at year end including impairment reviews of assets, liquidity management, systems of control, cybersecurity and operational resilience (including outsourcing) and Lending Framework Review with an expectation of publishing analysis of the review in H1,2024. The Dept of Enterprise Trade and Employment recently published  the Digital Services Bill 2023, which will provide for the full implementation in Ireland of the EU Regulation on a Single Market for Digital Services. Click here for a press release giving more details on the Bill and the EU Regulation commonly referred to as  the Digital Services Act. The EU Regulation establishes a pioneering regulatory framework to protect EU users of digital services and their fundamental rights online. The press release notes that the Irish Digital Services Bill is a technical bill, drafted to address specific obligations on Member States of the EU to give effect to the supervision and enforcement provisions of the EU Regulation. The Bill does not add to or amend the obligations on online platforms under the EU Regulation. Those obligations have direct legal effect in all Member States of the EU and do not require any implementing measures in national law. In its recent publication, IFAC’s Professional Accountants in Business group discuss how accountants are leading and driving sustainability and digital transformation agendas. Some areas discussed in this article include; The accountancy profession’s role in driving higher-quality, decision-useful sustainability-related information The use of AI in transitioning businesses and the nature of work Strategies for nurturing future leaders For further technical information and updates please visit the Technical Hub on the Institute website.                                ~          Happy Christmas        ~