Latest Tax news

Ruth Kennedy, previously Assistant Secretary of Personal Division and Project Manager for PAYE Modernisation, succeeds Michael Gladney as Revenue Commissioner, following his recent retirement.

In June we provided a second update in Chartered Accountants Tax News on delays in processing R&D tax credit claims. HMRC has now provided a further update which confirms that HMRC’s investigation into “concerning” claims which had been identified is ongoing meaning payment of claims continues to be delayed. Read the full update from HMRC below. “As previously mentioned, we are conducting additional checks on each claim and so our aim for processing times is currently 40 days. However, we are looking to return to 28 days as soon as we can. At the R&D Compliance Forum meeting that was held on July 13th, we discussed the ongoing work of Fraud Investigation Service (FIS), who recently issued letters seeking more information on identified claims we had concerns with. These letters are part of our efforts to ensure HMRC is taking appropriate action to protect the relief from abuse. As soon as we are able to, we will share any information we can on FIS’s work. We will shortly be reaching out to our working group to invite representatives to join a sub-working group to take forward ideas that representative bodies have raised with us. There will also be a full working group meeting taking place towards the end of the Summer/early Autumn. Furthermore, we are hoping to send another update when we have more information to share.”

Revenue has updated its guidance on the provision of work related equipment and supplies. The update clarifies the position where personal protective equipment (PPE) is provided.

Revenue has published new guidance on the tax deductibility of Digital Services Taxes (DSTs).

Revenue has published updated guidance notes to the Stamp Duties Consolidation Act 1999, to include all amendments to the 1999 Act by subsequent Acts up to and including the Finance (Covid-19 and Miscellaneous Provisions) Act 2022.

Revenue has published a new Tax and Duty Manual to provide guidance regarding the VAT treatment of the Special Flat-rate scheme for Farmers. In addition, the Farmers and intra EU Transactions Tax and Duty Manual has been marked as no longer relevant.

Revenue has updated its Tax and Duty Manual  to include information on changing accounting periods and the need to ensure that linked returns, such as the Form 46G Company, have the same accounting period as the Form CT1 for that same tax year.

Revenue has updated its guidance removing prior guidance on ‘patronage shares’. This reflects Revenue’s acceptable that shares issued by a co-operative at a value less than market value to members arising from the trading relationship between the member and the co-operative (or a nominated purchaser), otherwise known as patronage shares, does not give rise to a trading receipt within the charge to income tax.

Revenue has published an updated Tax and Duty Manual to reflect an amendment made by Finance Act 2021 to the scheme of accelerated capital allowances available under section 285A TCA 1997. Capital expenditure incurred on or after 1 January 2022 on equipment operated by fossil fuel (other than equipment operated on electricity generated using such fuel) does not qualify for accelerated allowances.

Revenue has published new guidance on the Interest Limitation Rule (“ILR”). The ILR transposed Council Directive (EU) 2016/1164 (as amended by Council Directive (EU) 2017/952) which establishes rules to combat tax avoidance schemes which impact the functioning of the EU marketplace. The ILR applies to accounting periods commencing on or after 1 January 2022 for all corporate taxpayers.

Revenue has released a new Tax and Duty Manual setting out guidance on the tax treatment of a number of health and well-being related benefits including the provision of a qualifying medical check-up, access to healthcare, COVID-19 testing, and flu vaccinations. In the past, Revenue did not apply a charge to tax when the above benefits were provided by an employer. These administrative measures were placed on a statutory footing by the Finance Act 2021 and the manual sets out detailed guidance of all conditions attaching to the exemptions.

Lesotho has deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS Convention) which will enter into force on 1 November 2022.