Latest Tax news

The Sunday Independent covered the Institute’s letter to Tánaiste Leo Varadkar highlighting tax and timing concerns which need to be resolved in advance of the introduction of pension auto-enrolment (see top story in ROI news for the letter).  Dr Brian Keegan writes about the need for automatic tax relief for working from home expenses in his column with the Irish Examiner.          

The Corporate Tax Statistics report was published by the OECD last week. The report provides internationally comparable statistics which are intended to assist in the study of corporate tax policy and expand the quality of data available for the analysis of base erosion and profit shifting (BEPS). The data shows that corporate income tax (CIT) is an important source of tax revenues for governments to fund essential public services, especially in developing and emerging market economies. It also highlights that statutory CIT rates have been decreasing in almost all countries over the last two decades. The report finds that evidence of continuing BEPS behaviours and a persistent downward trend in statutory CIT rates, reinforce the need to finalise agreement and begin implementation of the two-pillar approach to international tax reform. For more information read the report and the OECD’s update.

The European Commission has extended the scope of the General Block Exemption Regulation (GBER) which will allow Member States to implement certain aid measures without prior Commission scrutiny. The revised rules concern: certain State aid measures that support the green and digital transition and are, at the same time, relevant for the recovery from the economic effects of the coronavirus pandemic; and aid granted by national authorities for projects funded via certain EU centrally managed programmes under the new Multiannual Financial Framework; Under the new Multiannual Financial Framework, the Commission is streamlining the State aid rules that apply to national funding of projects or financial products that fall under; Financing and investment operations supported by the InvestEU Fund; Research, Development and Innovation projects having received a “Seal of Excellence” under Horizon 2020 or Horizon Europe, as well as co-funded research and development projects or Teaming actions under Horizon 2020 or Horizon Europe; European Territorial Cooperation projects, also known as Interreg. With this amendment of the GBER, these measures can now be directly implemented by Member States without having to be notified to the Commission, which only has to be informed ex-post. For more information read the European Commission’s press release.

The MyEnquiries tracking of enquiries function has been enhanced to provide an indication of enquiry status.  The enquiry status visible on the Enquiries Record is one of the following:  Received, In Progress, Completed, Awaiting Customer Feedback or Revenue Initiated.  See eBrief No. 149/21 for full details.

The Import One Stop Shop (IOSS) Tax and Duty Manual is updated to clarify the registration procedure (paragraph 5) and reporting obligations (paragraph 9) for intermediaries under the new VAT eCommerce rules introduced on 1 July 2021 which extends the VAT Mini One Stop Shop to a One Stop Shop, deems online marketplaces and platforms as suppliers for certain transactions, introduces a new Import One Stop Shop (IOSS) and special arrangements for certain imports of goods. Non-EU suppliers need to appoint an EU established intermediary to avail of the IOSS.  The role of the intermediary is to fulfil the obligations of the IOSS on behalf of the supplier. The intermediary is responsible for the declaration and payment of the VAT due on the importation of goods with an intrinsic value not exceeding €150. An intermediary will be jointly and severally liable with the supplier they represent where the Revenue deems it necessary.   In such cases, a notice will issue to both parties from the Revenue Commissioners to notify them that joint and several liability applies. This will apply on a prospective basis. See Revenue’s  IOSS guide and eBrief No. 143/21 for more details. 

Tax and Duty Manual Part 41A-05-04 - Full Self-Assessment: Time limits for making enquiries and raising assessments - is amended in Paragraph 4 to clarify the circumstances  where assessments can be amended and to confirm that assessments can be made or amended outside the four-year  timeframe on conclusion of a Mutual Agreement Procedure, as provided for in section 959AA(2A) TCA 1997.  Revenue cannot make or amend an assessment on a chargeable person who delivered a full and true return later than 4 years after the end of the chargeable period in which the return is filed, meaning that no additional tax can be payable and no tax can be repayable after this time.   However, at any time, Revenue can amend an assessment: where the return was not a full and true disclosure to give effect to the determination of an appeal to reflect an event which happened after the return is filed to correct a calculation error in the assessment to correct any mistake of fact which was disclosed by the taxpayer and not correctly reflected in the assessment or to give effect to bilateral Mutual Agreement Procedures reached between Revenue and a competent authority in another jurisdiction with which Ireland has a Double Taxation Agreement. See eBrief No. 145/21 for more details. 

Tax and Duty Manuals Part 15-01-30 (Seafarer Allowance) and Part 15-01-45 (Fisher Tax Credit) have been amended as a consequence of the Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2020 coming into operation. The changes ensure that following Brexit the status quo regarding eligibility for the allowance/tax credit is retained.  See Revenue’s website for further details. 

A copy of the CG50A certificate is now available in the ROS inbox of the filer of the CG50 applications.  The Tax and Duty Manual Part 42-03-01a eCG50: Guide for Applicants - has been updated at paragraph 4.7 to reflect this fact.  The online CG50 application processing system was launched in June 2020 which allows online filing by vendors applying for an eCG50A certificate, and purchasers filing an eCG50B form. See eBrief No. 146/21 for more details.   

Revenue recently published guidelines for the Business Resumption Support Scheme (BRSS).  BRSS will support businesses significantly impacted throughout the COVID-19 pandemic, even during periods when restrictions were eased.  To qualify, the business must demonstrate a significant reduction in trade during the period 1 September 2020 to 31 August 2021.  Eligible businesses can claim an Advance Credit for Trading Expenses.  The portal for registering and making a claim for the BRSS will open in early September. Revenue will publish details on how to register and details on the claim portal closer to the registration date. See Revenue’s BRSS webpage and guidelines for more details. 

Revenue extended the deadline for the completion and submission of the EWSS Eligibility Review Form in respect of June 2021 to 15 August 2021. The eligibility review form in respect of July 2021 is also due to be submitted on the same date.   The CCAB-I made a submission to Revenue on foot of representations from members to call for an extended EWSS Review Form deadline.  In a letter in response to the CCAB-I’s submission, Revenue set out that in so far as monthly turnover figures cannot be readily accessed for the purpose of completing the EWSS Eligibility Review Form, businesses may use the average turnover as derived from their bi-monthly (or other periodic) VAT return data to calculate the monthly turnover value for the review form.  The deadline extension is also noted in Revenue’s press release reminding businesses of key supports available as the economy continues to reopen.

From Monday 26 July, businesses in the hospitality sector, including bars (both “wet pubs” and gastro pubs) are allowed reopen for customers who are fully vaccinated.  The easing of restrictions from 26 July means that businesses in the hospitality sector are no longer regarded as being significantly restricted from operating and are no longer entitled to Covid Restrictions Support Scheme (CRSS) payments.  This is set out in updated CRSS Revenue guidelines.  Some businesses in the sector may decide not to open at this time for their own reasons, despite the easing of restrictions.  However, Revenue notes that these businesses are not entitled to continue claiming CRSS payments despite the fact that they remain closed.   Where businesses have reopened, they can make a claim for an enhanced restart CRSS payment.  The enhanced restart payment due to businesses reopening from 26 July 2021 is a single payment of three weeks at double the normal rate of CRSS, subject to a higher weekly maximum payment of €10,000.  The restart payment must be claimed within 8 weeks of reopening. Updated guidelines went live on Revenue’s website this week and can be found at https://www.revenue.ie/en/corporate/press-office/budget-information/2021/crss-guidelines.pdf .  See section 7.3 and 8.2 for further details.

The Institute wrote to Tánaiste Leo Varadkar recommending that in order to avoid confusion and tax arbitrage within the market, the current model for tax relief for pension contributions should be applied to automatic enrolment and the proposal to apply a specific State incentive model should be abolished.  We also called for a reasonable timeline for the introduction of automatic enrolment to be published immediately to give businesses and payroll operators time to develop and deploy an operational system.   Read the letter