The Institute, under the auspices of CCAB-I, made representations on behalf of members at last week’s meeting of TALC Collections. Amongst the issues discussed, Revenue provided updates on debt warehousing, non-resident landlords and agent access to Customs & Excise printouts, and asked members to remind taxpayers to update their bank details on ROS if moving accounts from Ulster Bank or KBC.
Debt Warehousing Scheme
Revenue reminded the forum that it is vital that taxpayers availing of debt warehousing file all returns, even Nil returns, and pay current taxes as they fall due, otherwise the benefits of debt warehousing will be revoked. Revenue confirmed that while non-filing of VAT RTDs and other informational returns does not revoke the benefits of debt warehousing, if other returns are also outstanding, informational returns will be included in correspondence notifying taxpayers of their obligations.
Revenue will not be writing to taxpayers who submitted their outstanding returns by 30 April 2022 to confirm their warehoused debt as the ROS screens should provide all the relevant information.
In October, Revenue intends to contact taxpayers if their Period 2 ends on 31 December 2022 advising them of the end of that phase and asking them to provide a payment schedule. Revenue reiterated that taxpayers must engage with Revenue before Period 2 ends to outline their plans to pay the warehoused debt. Should a Phased Payment Arrangement (PPA) be required it must be applied for through the normal online channels, with caseworker approval. It is also possible to pay off the debt early.
In terms of PPAs, Revenue confirmed that both warehoused and non-warehoused debt can now be consolidated within the same PPA and also clarified that the requirement to pay a down payment of 25 percent or 40 percent (depending on tax clearance status) applies to warehoused debt. Revenue wished to remind taxpayers that they would take a flexible and pragmatic approach depending on the case.
Non-resident landlords – strict legislative approach for 2021
Following representations by CCAB-I and other bodies last year, Revenue provided a work-around to enable the submission of the ROS Form 11 for the 2020 tax year for non-resident landlords who had not appointed a collection agent and where the tenant had not withheld tax. At the time, despite the legislative position, Revenue agreed to provide a workaround given the difficulties being experienced in filing returns. However last week, Revenue re-iterated its position that a concessionary measure similar to that permitted for filing 2020 ROS Form 11 returns will not be in place for the 2021 tax year. It is Revenue’s opinion that taxpayers should have had sufficient time to arrange their affairs to ensure the appropriate measures were in place for 2021.
Revenue advised that if issues arise whereby non-resident landlords have neither appointed a collection agent nor arranged for the tenant to deduct tax at source for 2021, such cases should contact Revenue, and they will be dealt with on a case-by-case basis. Revenue stated that they would ensure that internal manuals advising case workers on how to deal with such cases would be reviewed and updated if necessary.
Revenue acknowledged practitioners’ concerns that chargeable persons are not being permitted to file income tax returns and accepted the difficulties and arduous administrative requirements applicable to such landlords under the legislation but stated that it is its duty to implement the legislation.
We will keep members updated via Chartered Accountants Tax News.
Update bank details on ROS
Revenue has asked us to remind readers to update their bank details for both online payments and repayments where they have changed banks as a result of Ulster Bank and KBC exiting the market. Revenue noted that there may be a need to update the details under more than one tax head and across several platforms. Revenue will also include a reminder in the June ROS Pay & File bulk issue.
Customs & Excise Agent Access
Following a request by the Institute, under the auspices of the CCAB-I, Revenue confirmed that agents should be able to access clients’ Customs & Excise weekly print outs for imports on ROS by the third quarter of 2022.
Agent RTSO Payments access
In light of representations made to Revenue, and its increased focus on employee share scheme compliance, Revenue acknowledged the need to improve the facility for agents to set up payment of Relevant Tax on Share Options (RTSO) on ROS. It intends to implement the required IT improvements in 2023.
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