Revenue has published an updated version of the Stamp Duties Consolidation Act 1999 - Notes for Guidance on its website to include all amendments to the 1999 Act by subsequent Acts up to and including the Finance Act 2023.

Revenue has updated the Tax and Duty Manual which provides guidance on the Interest Limitation Rule (ILR). Updates to the manual are set out in a new appendix 2 while an example scenario (example 3.4.1) of a company leaving one interest group to join another is included.

Revenue has updated the Tax and Duty Manuals dealing with Irish Real Estate Funds (IREF) guidance notes and IREF declarations to include Pan-European Pension Product (PEPP) provisions introduced by Section 21 of Finance Act 2022. Amendments contained within Section 14 of Finance Act 2021 to effectively abolish Approved Minimum Retirement Funds (AMRFs), whereby they became Approved Retirement Funds (ARFs) as of 1 January 2022, are also referenced. In addition, IREF Declarations guidance has been further updated to request supporting documentation evidencing the equivalent nature of an entity where appropriate, to request additional baseline information where appropriate, and to remove detailed guidance regarding the transitional arrangements that were in place to assist with the introduction of the IREF declaration process, but which are now expired.

Readers are reminded that the Temporary Business Energy Support Scheme (TBESS), designed to help businesses with energy costs, ends today, 31 July 2023.  Under the scheme, announced in Budget 2023, €1.25 billion was set aside to help tax compliant trade and professional businesses cope with significant increases in their electricity and/or natural gas prices from September 2022 to 31 July 2023. Chartered Accountants Ireland advocated for several changes to the scheme throughout 2023, many of which were implemented.  Businesses have until 30 September 2023 to submit claims under the scheme. Furthermore, the Department of Finance has published an assessment of the TBESS.

Last week, the Minister for Finance, Michael McGrath T.D., launched a second Feedback Statement on the transposition of the EU Minimum Tax Directive (the Pillar Two Directive). With work progressing on the domestic transposition of the Pillar Two Directive, legislation is to be included in Finance Bill 2023. The feedback statement is open for consultation until 21 August 2023. The Institute, under the auspices of the CCAB-I, will respond to the consultation. Members can email any comments to tax@charteredaccountants.ie. As the OECD negotiations continue, the design process is constantly evolving. Earlier this month, the OECD released further Administrative Guidance on the GloBE rules covering a number of topics, including on items such as a Qualified Domestic Minimum Top-up Tax (QDMTT) Safe Harbour, a transitional undertaxed payments rule (UTPR) Safe Harbour for the jurisdiction where a multinational group is headquartered, general currency conversion rules, guidance on tax credits, substance based income exclusion and further guidance on a QDMTT. It is intended that the agreed guidance will help to provide tax certainty for businesses and mitigate administrative burden for both businesses and tax authorities. The OECD also issued a revised version of the GloBE Information Return (GIR). The GIR is a standardised return to be filed by entities within scope of the Pillar Two rules. Guidance is provided on the format and required content of the GIR, together with the circumstances when categories of information in the return will be disseminated between jurisdictions. As previously reported in March, the first feedback statement set out proposed approaches to key elements of the implementing legislation and the administration of the new rules. The second Feedback Statement contains draft approaches to further elements of the implementation legislation, including the proposed approach to a QDMTT, together with consultation questions on a range of technical and policy issues and an update on the Administrative Guidance package, in particular, the safe harbour provisions. Minister McGrath commented, ‘I am pleased to publish the second Feedback Statement on the Irish implementation of the EU Minimum Tax Directive. This is a further important step in our domestic process of transposition and marks Ireland’s continuing commitment to delivering on agreed international tax reforms. I welcome the constructive input of the business and advisory communities with the development of these complex new rules and would encourage their early engagement with this new Feedback Statement.’ Read the full press release here.

Revenue has confirmed that it is in the process of developing guidance and will publish an updated Tax and Duty Manual (TDM) in the coming weeks, in relation to the tax treatment of GMS (General Medical Services) income of GPs. This follows repeated calls from practitioners for clarity, in advance of the upcoming tax return filing season, in relation to the tax treatment of GMS income of GPs in circumstances where GMS payments have been mandated to a medical practice by a GP that is an employee of, or partner in, the practice. In advance of that publication, and cognisant of the need for certainty as soon as possible, Revenue has provided us with the following note of the position that will be set out in the TDM: “At the most recent meetings of Main TALC and TALC Direct practitioners emphasised the need for clarity in relation the GP/GMS income matter in advance of the upcoming tax filing season. Revenue is in the process of developing guidance on this matter and will publish an updated TDM in the coming weeks. In advance of that, and taking on board the calls for certainty as soon as possible, this note provides a brief outline of the position that will be set out in the TDM. Further detail will be provided in the TDM. As has been acknowledged at both TALC fora, the PSWT credits issue is part of a wider issue arising from contractual arrangements involving GPs. As a matter of law, payments made to a GP under a GMS contract belong to the GP who has entered into that contract with the HSE. This is evident from the terms of a GMS contract and this interpretation was confirmed in a TAC determination in 2022 (01TACD2022). This position does not change because the payments are mandated to be paid to another person, such as a medical practice. There is no legal basis for Revenue to treat income belonging to an individual GP to be income of another person/ medical practice for tax purposes. Therefore, a GP who holds a GMS contract— is a chargeable person as regards income arising under the contract and should report that income under the self-assessment system, and is the specified person for the purposes of PSWT and, therefore, is the person who may, where the relevant criteria are met, claim a credit for PSWT deducted on a GMS payment. A credit may not be claimed by any other person, including a medical practice. Revenue understands that practices have developed whereby a GP may have mandated that GMS payments are paid to a medical practice in circumstances where— a) the GP is employed by the medical practice concerned and receives a salary from that practice, which is payable subject to PAYE, or b) the GP is a partner in the medical practice concerned and receives a share of the partnership profits. Revenue expects that, in relation to bona fide arrangements referred to in a) or b) above, for the tax year 2024 onwards, a GP who holds a GMS contract will, where they are not already doing so, account for tax payable in respect of their GMS income under the self-assessment system (i.e. the correct treatment outlined at 1) and 2) above is applied). This expectation, as regards the application of 1) and 2) above in relation to income arising from a GMS contract for the tax year 2024 onwards, does not apply in respect of arrangements that are not bona fide or which have been entered into for the purpose of securing a tax advantage. In respect of such arrangements, the treatment referred to at 1) and 2) above will be applied for all tax years. For the avoidance of doubt, in circumstances where a GP, who holds a GMS contract, has incorporated his or her medical practice, the treatment referred to at 1) and 2) above will be applied in respect of his or her GMS income for all tax years.”

Over the past number of months, we have been informing Tax News readers that employers will be required to report details of small benefits, travel and subsistence and remote working allowances paid to employees and directors from 1 January 2024. This new requirement was introduced in Finance Act 2022 and is set out in Section 897C TCA 1997.  Last week, Revenue updated its website to set out information on the new reporting requirements for employers. As previously reported, in Tax News, representatives from the Institute, under the auspices of the CCAB-I, attended the first meeting of the Tax Administration Liaison Committee (TALC) Enhanced Reporting Requirements Subgroup earlier this month to discuss the implementation of enhanced reporting requirements. At the subgroup meeting, and previously at Main TALC, our representatives raised their concerns around the practicality of real-time reporting as well as concerns with the additional costs for businesses associated with the new measures. The CCAB-I has suggested to Revenue that an annual return frequency is a more reasonable reporting time-frame given it would meet Revenue’s needs in terms of reporting non-taxable reimbursements but would place less burden on employers to comply. While it is accepted that employers already maintain records of the reportable benefits, feedback has informed us that integrating these records with a real-time filing requirement is a complex task. Earlier this month comments from Cróna Clohisey, Tax & Public Policy Lead, on the new Enhanced Reporting Requirements for Employers were covered in the Sunday Independent Business. The current edition of Accountancy Ireland’s Briefly newsletter explores the practical challenges employers need to address and outlines four key actions to prepare for this new initiative. CCAB-I will continue to liaise with Revenue on these requirements and will inform members via Tax News.

In Irish news, the Tax Strategy Group (chaired by the Department of Finance) has published its papers ahead of Budget 2024 and Revenue guidance on the R&D tax credit is updated for Finance Act 2022. In UK news, read this week’s miscellaneous updates from HMRC which includes a reminder about the new R&D Additional Information Requirements form which must now be used from 8 August 2023, and we bring you the highlights from last week’s legislation day. In International news, the OECD has published its Revenue Statistics in Asia and the Pacific 2023 report.     Ireland  1.  The Tax Strategy Group (TSG) last week published its annual papers in advance of Budget 2024. 2.  Revenue guidance on the R&D tax credit is updated for Finance Act 2022.  UK 3.  This week’s miscellaneous updates from HMRC includes a reminder about the new R&D Additional Information Requirements form which must now be used from 8 August 2023, and not 1 August 2023.   4.  Read about the highlights from last week’s legislation day.  International 5.  The OECD has published its annual review of Revenue Statistics in Asia and the Pacific.  Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount. You can also read this week’s EU exit corner here.    . 

The Tax Strategy Group (TSG) last week published its annual papers in advance of Budget 2024. In this year’s papers, the TSG identifies the key challenges for Ireland’s economy as capacity constraints, the aging population, digitalisation, de-carbonisation and de-globalisation. The TSG also highlights the country’s reliance on multinational companies and the resultant vulnerability to our corporation tax base. The TSG is chaired by the Department of Finance and comprises senior officials and advisers from several governmental departments and offices. The TSG is not a decision-making body, rather its purpose is to set out different options to be considered in the Budget. The full list of papers released by the TSG are as follows: Income Tax (TSG 23/01) includes a summary of tax yields, information on the distribution and burden of income tax and USC and policy considerations for reform. Other items discussed include Refundable Tax Credits, the Remittance Basis of Taxation and Pensions. Pay Related Social Insurance (TSG 23/02) examines issues including the Social Insurance Fund, certain “step-effect” anomalies relating to the exemptions from PRSI for lower paid workers, and the rate of PRSI for the self-employed. Corporation Tax (TSG 23/04) examines a range of topics such as corporation tax trends, implementation progress of BEPS, Pillar One and Pillar Two, EU tax developments, an update on Apple State Aid case and a discussion of various business support measures. Residential Property-Related Taxation Measures (TSG 23/06) discusses various income tax reliefs, including the Rent Tax Credit, and the treatment of rental income and examines residential zoned land tax (RZLT), local property tax (LPT) and vacant homes tax (VHT). Capital gains tax and capital acquisitions tax property reliefs are identified. A reduced rate of VAT for the supply and construction of housing is also considered. Climate Action and Tax (TSG 23/07) looks at how the tax system can be used to help meet Ireland's ambitious climate change goals of reducing emissions, increasing energy efficiency and developing less environmentally harmful policies. It puts forward options in respect of carbon, fuel related and motor taxes. Value Added Tax (TSG 23/08) reviews VAT rates and structures, considers options to assist SMEs and addresses climate change and the high costs of living. Capital & Savings Taxes (TSG 23/10) covers capital gains tax, capital acquisitions tax, DIRT and Stamp Duty and examines rates, yields and exemptions associated with these taxes. The paper sets out the current position on each and examines potential options for change in the context of Budget 2024.

With a view to ensuring that taxpayer data is kept in a safe, secure and accurate manner in accordance with Data Protection obligations, Revenue has updated the Agent’s Guide to the Collector-General’s Division. Revenue has advised that where an agent inadvertently uploads claims or returns for an incorrect taxpayer, or attaches information related to a third party, the integrity of the data held by Revenue is compromised. To help ensure that all details entered are correct for the taxpayer, additional text has been added to the agent screens on ROS. The updated manual includes a new section titled “Integrity of Data” explaining the system enhancements for agents.

This week we bring you news of new guidance and a form for anyone self-employed and working abroad. HMRC has also asked us to publish “Handy hints for taxpayers – June 2023”. Read HMRC’s update on new employees, and we remind you that from next month the research and development (“R&D”) Additional Information Requirements form must be submitted with all R&D tax relief claims, although this commences from the later date of 8 August 2023. The latest report from the Department for Trade on the National Minimum Wage is also available, and HMRC has published updated guidance on “How HMRC advice and information can help you”. New guidance and form for self-employed taxpayers working abroad New guidance and a g-form are available for any self-employed individuals who are working abroad and wish to apply for a certificate to confirm they pay UK national insurance. The form should be used to ask HMRC to confirm that you only need to pay UK social security contributions if you are a self-employed individual working temporarily in an EU country, or Gibraltar, Iceland, Liechtenstein, Norway, or Switzerland. HMRC’s update on new employees HMRC has sent an email about upcoming activity to support employers with new starters. The email sets out useful tips to help employers get their staff on the right starter declaration and tax codes.  R&D Additional Information Requirements form commences from 8 August 2023 From 8 August 2023, a week later than the original commencement date of 1 August 2023, companies must complete and submit the Additional Information Requirements (“AIR”) form to HMRC to support all claims for R&D tax relief or the R&D expenditure credit. The AIR form must be sent before submitting the company’s Corporation Tax Return which includes the R&D claim. Failure to do so means that HMRC will write to the company to confirm it has removed the claim for R&D tax relief from the Corporation Tax Return. According to HMRC, the delayed commencement date is designed to give companies more time to prepare. The Relief for Research and Development (Content of Claim Notifications, Additional Information Requirements and Miscellaneous Amendments) Regulations 2023 were published last week and codify the content of both the AIR form, and the Claim Notification form, which are both mandatory requirements for R&D tax relief claims to be considered valid. Chartered Accountants Ireland is represented on HMRC’s R&D sub-group forum and would welcome any feedback or questions on either the AIR form or the Claim Notification form. Department for Trade’s annual National Minimum Wage report The Department for Trade’s annual National Minimum Wage report was published last month and named over 200 employers for failing to pay their staff the National Minimum Wage. Guidance for employers on pay continues to be available on GOV.UK. Additional advice has also been published about breaches and the steps employers should take to make sure they pay their workers correctly. Updated guidance “How HMRC advice and information can help you” HMRC has published updated guidance “How HMRC advice and information can help you”. Some of the key changes made are as follows:- It should be clearer what types of information, or advice the statement applies to; Links are included to the HMRC Charter, and a link to the Admin Law Manual which covers “Legitimate Expectation” (“LE”) in more detail; and It is now clearer that HMRC can consider applying the correct tax position prospectively, something it always did as part of LE but did not say in the guidance.  The updated statement is based on stakeholder feedback from the Guidance Strategy Forum, with further improvements expected to both the guidance, and the Admin Law Manual.  HMRC are keen to hear feedback on the changes and is also considering more opportunities to signpost to the guidance.  

Revenue has updated the Tax and Duty Manual on the Research and Development (R&D) Corporation Tax Credit. Changes introduced by Finance Act 2022 are reflected throughout the manual, with examples provided where appropriate.  The manual also includes a new section on costs associated with cloud computing and obsolete material has been removed. The R&D corporation tax credit was amended in Finance Act 2022. Two new sections - sections 766C and 766D TCA 1997 – were introduced providing for accelerated payment of the second and final instalments for claims under sections 766(4D) and/or 766A(4C) TCA 1997 where the accounting period commenced pre-1 January 2022. The updated manual also provides guidance on making a claim using the new R&D Specified Return for 2022. As previously reported, a company is required to file an R&D Specified Return, which forms part of the Form CT1 2022, via MyEnquiries where the company is making a claim for an accelerated payment of the second and final instalment, as set out above.