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.
At the recent TALC Collections meeting, Revenue noted that a similar concessionary measure 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.
CCAB-I noted that the renewed approach to the obligations for non-resident landlords would have been communicated late in 2021, such that many taxpayers will not have been aware of the requirement to appoint an agent or ask the tenant to withhold tax for much of the year. Revenue accepted this point and advised practitioners and taxpayers to engage with Revenue on a case-by-case basis via MyEnquiries for 2021 ROS income tax returns where difficulties arise.
Revenue reiterated that the legislation around the requirements for non-resident landlords is clear and unequivocal. However, Revenue also acknowledged more could have been done to communicate the renewed approach to withholding obligations in these cases and practitioners can expect a resource on Revenue’s website (likely an e-Brief and updated guidance) which should assist in the necessary communications with clients. We will keep members updated via Tax News.
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