The OECD recently reached agreement on the Pillar Two “Subject to Tax Rule” (STTR). The STTR provides for the taxation of certain intra-group payments by developing countries at a rate below 9 percent. It enables the application of a tax where a country would be otherwise unable to under a relevant double tax agreement.

In Irish news, Revenue confirms extended opening hours for the peak Pay & File period and outlines property owners’ obligations in respect of the new Vacant Homes Tax and we bring you an update from last week’s meeting of Main TALC. In UK news, read about the latest elements of the Windsor Framework to take effect and the one-year extension to the Trader Support Service. In International news, the Carbon Border Adjustment Mechanism (CBAM) enters its transitional phase.  Ireland Revenue has published its extended opening hours for the 2023 Pay and File period. Revenue has outlined property owners’ obligations in respect of the new Vacant Homes Tax. Read our update from last week’s meeting of Main TALC. UK Read about the latest elements of the Windsor Framework to take effect and the one-year extension to the Trader Support Service. International The Carbon Border Adjustment Mechanism (CBAM) has entered its transitional phase. 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.

Revenue has published details of its ROS supports and extended opening hours to facilitate and support taxpayers and their agents for the 2023 Pay and File period. Extended support opening hours The ROS Technical Helpdesk, the Collector General’s Division (including ROS Payment Support) and the Income Tax support line will provide the following extended opening hour services for the 2023 peak Income Tax Pay and File period. Date ROS Technical Helpdesk     01-7383699 Business Taxes (Income Tax only)     01-7383630 Collector General's Division (including ROS Payment Support)   01-7383663 Friday, 10 November 2023 09.00 - 17.00 09.30 - 17.00 9:30 - 13:30 Monday, 13 November 2023 09.00 - 20.00 09.30 - 20.00 09.00 - 20.00 Tuesday, 14 November 2023 09.00 - 20.00 09.30 - 20.00 09.00 - 20.00 Wednesday, 15 November 2023 09.00 - 0.00 09.30 - 0.00 09.00 - 20.00   Further information is available in eBrief no.203/23.

Revenue has published a new Tax and Duty Manual on DAC7. The manual provides guidance on the presence and participation of foreign tax officials in administrative enquiries as part of an exchange of information request under DAC7. 

Last week we notified readers that the Institute is meeting with HMRC tomorrow to discuss the 31 October 2023 deadline for using the VAT margin scheme for second hand vehicles purchased from Great Britain and moved to Northern Ireland before 1 May 2023. Sales of such vehicles after the end of the VAT margin scheme on 31 October 2023 will mean that VAT must be charged on the full selling price. These vehicles do not qualify for the VAT related payment scheme which commenced on 1 May 2023. Today is the deadline for providing us with supporting evidence that many of these vehicles are currently unsold and are expected to remain unsold on 31 October 2023. A reminder of the evidence that HMRC is seeking is set out below.  HMRC has requested details or estimates in respect of the following:- The numbers of second-hand vehicles dealers in Northern Ireland had in stock on 1 May 2023 that were sourced from Great Britain;  How many of these remain unsold at present, and their estimated value;  How many are likely to be unsold on 31 October 2023, and their estimated value; and  If there is any category of vehicle that may be particularly affected by having a cut-off date of 31 October 2023 after which the margin scheme could no longer be used.  We recognise that many dealers may not be able to provide all of the detail requested in such a short period of time, especially the category of vehicle, but any information or evidence to support the difficulties being experienced in selling these vehicles would be appreciated.  The meeting will also be an opportunity to discuss the new second-hand motor vehicle VAT related payment scheme. Feedback on the end of the VAT margin scheme and the new VAT related payment scheme should be emailed to the Institute by the end of today Monday 2 October 2023. 

Revenue has published a new Tax and Duty Manual for financial institutions in respect of their reporting obligations under section 891B TCA 1997 and associated regulations. 

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. We also update you on recent developments in relation to the Windsor Framework and the latest Trader Support Service (“TSS”) bulletin is also available. Last week it was  announced that the TSS is being extended one further year to 31 December 2024. The Institute has been lobbying for a further extension to the TSS and welcomes this decision but will be considering what permanent supports are needed in this area in future.  Update on the Windsor Framework  Last week HMRC published further details on the Windsor Framework as some significant elements of it began to take effect from the end of September.   From 30 September 2023, the new UK Internal Market Scheme expanded the range of businesses able to benefit from the new arrangements provided to protect internal UK movements, including the removal of EU tariffs. In tandem, the new sanitary and phytosanitary “green lane” arrangements took effect, including the new Retail Movement Scheme for agrifood retail products, new rules to allow plants to move into Northern Ireland and new arrangements to enable seed potatoes to move once again from Great Britain to Northern Ireland. As these changes bed down in the coming weeks and months, contact us to share your feedback and any problem areas which arise.  Miscellaneous updated guidance etc.   The following updated guidance, and publications relevant to EU exit are available:-  Customs declaration completion requirements for goods subject to sanitary and phytosanitary checks under the Northern Ireland Protocol;  Draft Decision No 1/2023 of the Specialised Committee on Participation in Union Programmes under the Trade and Cooperation Agreement adopting Protocols I and II and amending Annex 47 to the Trade and Cooperation Agreement;  Third Trade Specialised Committee on Customs Cooperation and Rules of Origin Agenda;  Using the Trader Dress Rehearsal service;  List of customs training providers;  Making an import supplementary declaration;  Making a simplified frontier declaration;  Making a full import declaration;  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service;  Receive goods into and remove goods from an excise warehouse (Excise Notice 197); and  Paying additional excise duty for goods moving to Northern Ireland.   

The OECD has released the latest outcomes on the implementation of Country-by-Country reporting (CbCR). CbCR is the reporting mechanism which gives effect to BEPS Action 13 and requires tax administrations to collect and share detailed information on large multi-national enterprises operating in their jurisdiction. The OECD has reported that implementation of CbCR in countries has largely been consistent with the Action 13 minimum standard.

The Carbon Border Adjustment Mechanism (CBAM) has entered its transitional phase. CBAM is Europe’s landmark tool to combat carbon leakage. It equalizes the price of carbon between domestic products and imports ensuring Europe’s climate policies are not undermined by less rigorous green standards in third countries. In last Friday’s Sustainability Bulletin, the Institute’s Sustainability Officer, Susan Rossney, included an update on the measure.

Revenue has updated the Tax and Duty Manual  on the Special Assignee Relief Programme (SARP). Paragraph 15 has been amended to provide updated guidance on the certification requirements of a relevant employer or associated company in respect of a relevant employee.   The guidance confirms that there is no statutory requirement for the relevant employer or associated company to submit a completed Form SARP 1A to Revenue within the 90-day time limit. However, this is requested to enable Revenue to review the application and confirm that an employee qualifies as a “relevant employee”.  Revenue notes that, in cases where a Form SARP 1A is not submitted to Revenue and the relief is claimed by the employee for the first time in a Form 11 tax return, the processing of the return may be delayed by Revenue pending a review as to whether the employee actually qualifies as a “relevant employee” for SARP purposes. 

In its response to the consultation “Taxation of Employee Ownership Trusts and Employee Benefit Trusts”, the Institute’s Northern Ireland Tax Committee has recommended that the UK Government undertake a full review of UK employment taxes policy, which should be targeted at assessing how this could be harnessed and reformed to ultimately incentivise employment and reduce the current labour and skills shortages in the UK.  The Committee’s submission also includes a number of recommendations which seek to reduce the cost of employment in certain areas and also recommends that an enhanced form of tax relief for training employees in key skills areas, in the form of a super deduction, should be introduced. Read the Committee’s full recommendations on page 7 of the submission.

The Institute, under the auspices of the CCAB-I, made representations on behalf of members at last week’s meeting of Main TALC. Among the issues discussed, Revenue provided an update on its position regarding the Enhanced Reporting Requirements for employers (ERR) and the tax treatment of general medical services (GMS) income of general practitioners (GPs). In addition, Revenue updated the group on issues raised at the other TALC subcommittees including updates to the wording of the VAT56A accountants’ letters, and the impact of the General Block Exemption Regulations on the Employment Incentive Investment Scheme (EIIS).  In relation to ERR, CCAB-I and all practitioners represented at the meeting continued to voice their concerns with the implementation of these measures. One of the key difficulties is the requirement to report ‘on-or-before’ the making of in-scope payments. CCAB-I raised these concerns in a letter to the Minister for Finance and reiterated these at Main TALC last week. CCAB-I also noted the need for clear guidance to be issued as soon as possible to help employers implement ERR. Revenue noted that a Tax and Duty Manual will issue by the end of October. The introduction of ERR was also contrasted with the implementation of PMOD in recent years One of the key differences being it remains unclear to many businesses just what software systems they will need to introduce to satisfy their obligations. Revenue urged employers to contact their software providers in that regard.   On the matter of the proposed changes to the tax treatment of GMS income of GPs which we have covered in recent editions of Tax News, CCAB-I expressed concerns over the potential commercial impact of the change in practice  and we will be writing to Revenue later this week. Revenue has also committed to publishing a Tax and Duty Manual on the changes as soon as possible.   The VAT56A issue arose from a recent meeting of the TALC Indirect Taxes sub-committee and Revenue has since agreed to meet with practitioners later this week to close out the matter. CCAB-I provided new wording to take account of updates to certain aspects of the professional accountancy framework. We will share the outcome of this meeting in next week’s Tax News.  Lastly, in relation to the Employment Investment Incentive Scheme and the impact of the revised GBER (which we updated readers in last week’s Tax News), Revenue committed to engaging with practitioners to consider the impact of the recent GBER updates.