In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The government has published the first UK Trade and Cooperation Agreement (“TCA”) implementation report which outlines the progress that has been made in implementing the agreement, and summarises the UK’s engagement with the EU through the TCA’s formal structures. Meetings have taken place recently in Brussels of both the EU-UK Parliamentary Partnership Assembly, and the EU-UK Joint Committee, and the Retained EU Law Bill has received Royal Assent. The latest Trader Support Service Bulletin is also available, and HMRC is advising participants in the current UK Trader Scheme to sign up to the new UK Internal Market Scheme (“IMS”) by the end of this month. Deadline for signing up to new UK IMS We understand that HMRC is currently writing to authorised traders in the UK Trader Scheme (“TS”) to advise them to sign up to the UK IMS by the end of this month so that their application can be approved in time for moving goods in the green lane under the Windsor Framework. HMRC is advising that applications to the new UK IMS which it receives after 31 July 2023 may not be processed in time. You can read more about the new UK IMS here, and here. Miscellaneous updated guidance etc. Guidance for preferential rates of duty and rules of origin; Transit newsletters – HMRC updates; Pay less Customs Duty on goods from a country with a UK trade agreement; Using an origin declaration for the Developing Countries Trading Scheme; Use the Developing Countries Trading Scheme to import goods; Notices made under The Customs (Origin of Chargeable Goods: Developing Countries; Trading Scheme) Regulations 2023; Check your goods meet the Developing Countries Trading Scheme rules of origin; List of customs training providers; Search the register of customs agents and fast parcel operators; Classifying electric lamps for import and export; Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020; Reference Documents for The Customs (Tariff Quotas) (EU Exit) Regulations 2020; and Data Element 2/3 Documents and Other Reference Codes (National) of the Customs Declaration Service (CDS).

Revenue has published a new Tax and Duty Manual on the dispute resolution procedures contained in the European Union (Tax Dispute Resolution Mechanisms) Regulations 2019. The European Union’s Directive on tax dispute resolution mechanisms ((EU) 2017/1852 of 10 October 2017) (the “Directive”) sets out a framework for the resolution of tax disputes between Ireland and other EU Member States. The Directive has been transposed into Irish law by The European Union (Tax Dispute Resolution Mechanisms) Regulations 2019 (S.I. No. 306 of 2019) and the European Union (Tax Dispute Resolution Mechanisms) (Amendment) Regulations (S.I. No. 673 of 2020).

The next OECD Tax Talks webinar will take place from 3.00pm to 4.00pm this Wednesday (19 July). The webinar is open to the public and there will time allocated for a Q&A session. You can also listen to all previous episodes by following the above link.

The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) agreed an Outcome Statement which acknowledges the substantial progress made on the Two-Pillar Solution. The Outcome Statement, which is the fruit of twenty months of intense technical negotiations, covers the Multilateral Convention, a proposed framework for the application of the arm’s length principle, the Subject-to-Tax Rule and a comprehensive action plan.

Representatives from the Institute, under the auspices of the CCAB-I, met with the Minister for Finance, Michael McGrath T.D and his team earlier this week to discuss CCAB-I’s pre-Budget 2024 submission. The need to simplify the tax system and reduce the administrative burden on businesses was discussed, as were the complexities experienced by small businesses, in particular, when availing of several of the business tax reliefs. The importance of long-term investment in critical infrastructure, not least housing, in order to maintain Ireland’s position as a competitive place to do businesses and also to retain and attract talent was also highlighted.  

In Irish news, Revenue has published guidance on EU reporting obligations for platform operators and we bring you news that Revenue is to make contact with certain entities that have not filed corporation tax returns. In UK news, HMRC is launching a form over the summer which can be used to obtain details of overlap relief for basis period reform, and the Government will be reporting annually on tax simplification, both of which are previous recommendations of Chartered Accountants Ireland. In International news, the European Commission publishes a progress report on Pillar One.  Ireland Revenue has published a new guidance on how new EU reporting obligations for platform operators will operate in Ireland. Revenue has informed us that it intends to issue Level 1 compliance intervention notices to taxpayers who registered for Corporation Tax and have not filed Corporation Tax returns for years up to and including 2021. UK Read in our miscellaneous HMRC updates about HMRC launching a form over the summer which can be used to obtain details of overlap relief for basis period reform. The Government will be reporting annually on tax simplification. International The European Commission recently published a progress report on Pillar One. 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.          

Section 739J(3) TCA 1997 obliges investment limited partnerships (ILPs) to file a statement annually using Form ILP1. The filing deadline for Form ILP1 in respect of the year of assessment 2022 is extended to 14 September 2023. A new version of the Form ILP1 is now available on the Collective investment vehicles webpage, in the Related Forms panel of the Revenue website and should be used for filings in respect of the year of assessment 2022. As noted on page 1 of the Form ILP1, filing should be completed electronically and returned to Revenue via MyEnquiries to largecasesdiv@revenue.ie. The Form ILP1 has been updated by the addition of the following panels: Name of Signatory in plain text; Net Asset Value of the ILP at the end of year of assessment; General Overview of business activities carried out by the ILP in the year of assessment; Details of any Material Transactions carried out by the ILP in the year of assessment; Details of any transactions entered into with persons connected with any partner in the ILP in the year of assessment; Disclosure of Assets held by ILP at end of year of assessment (which includes disclosure of asset type, location, and value); and Detailed guidance notes attached to the updated Form ILP1 to assist completion of the statement, including practical examples illustrating level of detail required.

Revenue has amended Chapter 27 of the Pensions Manual which deals with the taxation of retirement lump sums to provide further information on the tax and filing obligations for excess lump sums. Instructions are included as to when Revenue Payroll Notifications and the Form 790AA should be submitted, and the details required.

Revenue has updated its Tax and Duty Manual titled “Guide to Exchange of Information under Council Directive 2011/16/EU, Ireland’s Double Taxation Agreements and Tax Information Exchange Agreements and the OECD/Council of Europe Convention on Mutual Administrative Assistance in Tax Matters”. The updated manual now includes an appendix with details of the exchange agreements Revenue has in place under various Automatic Exchange of Information frameworks.

Revenue has published a new Tax and Duty Manual to provide general guidance on how new EU reporting obligations for platform operators will operate in Ireland. The Council Directive 2011/16/EU (DAC) which provides for the automatic exchange of information between the tax administrations of EU Member States was amended by Council Directive (EU) 2021/514 (DAC7) in 2021 to extend the scope of the existing DAC provisions. With effect from 1 January 2023, DAC7 obliges certain platform operators to collect and automatically report information on certain sellers using their platform to earn consideration. It is intended that the information obtained will assist Member States in addressing the tax challenges posed by the platform economy.

Revenue has published an updated Tax and Duty Manual on EU sanctions in response to the situation in Ukraine to include updated legislative references (paragraph 2), details of the 11th sanctions package (paragraph 4), and advice on the circumvention of sanctions (paragraph 6).

Revenue has updated the Tax and Duty Manual regarding rent-a-room relief to include material on the rent tax credit (in paragraph 7.2). In addition, obsolete material on owner occupier relief under certain property-based tax incentive schemes and relief from stamp duty for first time buyers and certain owner occupiers have been deleted.