Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.

Revenue has updated its Stamp Duty Manual to reflect recent amendments provided for by Finance Act 2023. Section 81AA SDCA 1999 provides for relief from stamp duty on transfers of land to young trained farmers. The updated manual has been amended as follows: The extension of young trained farmer relief to 31 December 2025. To comply with EU State aid rules, a reduction from four years to three years in respect of the period of time that a person may obtain a relevant farming qualification after acquiring land and qualify for relief under section 81AA. Section 81C SDCA 1999, farm consolidation relief, has also been extended until 31 December 2025 and the Stamp Duty manual has been updated accordingly.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes.

Sierra Leone has joined the international fight against tax evasion as the 168th member (37th African member) of the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum). Sierra Leone will also join the Africa Initiative, a programme to support domestic revenue mobilisation and the fight against illicit financial flows.

In a recent report, the OECD explains that tax revenues in Latin America and the Caribbean have returned to their pre-pandemic level due to the overall economic recovery and higher commodity prices.

In January, the Institute, under the auspices of the CCAB-I, responded to the European Commission’s public consultation on the Business in Europe: Framework for Income Taxation (BEFIT) initiative. The European Commission has now published its final summary report from the responses received. The report suggests that most organisations who responded, including CCAB-I, consider existing regulation to be sufficient.

The European Commission welcomed the political agreement reached by the EU Finance Ministers on 16 May 2023 on new tax transparency rules for all service providers facilitating transactions in crypto assets for EU-resident customers (commonly known as DAC8). The new reporting requirements will enter into force on 1 January 2026.

In Irish news, Revenue informs non-resident landlords of administrative changes to be introduced and the Institute responds to the Pillar Two Implementation Feedback Statement. In UK news, the rates of HMRC late and repayment interest are both due to increase again and strike action may affect HMRC phone lines. In International news, the OECD publishes 2023 Progress Report on Tax Co-operation.  Ireland Revenue has written to non-resident landlords and their collection agents to inform them of the changes to be introduced to the administration of withholding tax for non-resident landlords. The Institute, under the auspices of the CCAB-I, responded to the Department of Finance’s Pillar Two Implementation Feedback Statement. UK The rates of HMRC late and repayment interest are both due to increase again. Strike action may be affecting HMRC phone lines. International The OECD has published its 2023 Progress Report on Tax Co-operation for the 21st Century. 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.        

Anti-money laundering directives require each European Union (EU) Member State to establish a Central Register of Beneficial Ownership of Trusts (CRBOT). The purpose of the CRBOT is to help prevent money laundering and terrorist financing by improving transparency on who ultimately owns and controls Irish trusts. The terminology used in anti-money laundering to refer to persons who are obliged to implement measures under the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 is designated persons. This term includes auditors and external accountants.  A designated person is required under section 35 (3A) of the 2010 Act to ascertain that a trust’s beneficial ownership details are entered in the trust’s beneficial ownership register or in the CRBOT, prior to the establishment of a business relationship with that trust. A designated person can gain access to a trust’s registration by obtaining an access number from the trustee.  Designated Persons have an obligation to notify the Registrar of the CRBOT where there is a discrepancy between the particulars of a trust's internal register and the CRBOT. A detailed guide on accessing the register and the discrepancy notice form can be found on the CRBOT website here. A designated person who fails to notify the Registrar of a discrepancy commits an offence and shall be liable, on summary conviction, to a class A fine.  

The Minister for Finance, Michael McGrath TD, has published an analysis by his department entitled Future-proofing the Public Finances – the Next Steps. A key recommendation in the analysis is the establishment of a long-term public savings vehicle to ensure that windfall corporation tax receipts are not used to fund permanent expenditure increases or tax reductions. Secondly, such a fund could contribute to meeting budgetary pressures in the future. The report also notes that, under almost all of scenarios simulated, the drawdowns from such a long-term public savings vehicle would still not be sufficient to cover the full increase in ageing-related costs expected by 2030. Therefore further reforms to the pension system – including increases to the rate of PRSI – will be required. Commenting on the scoping paper, Minister McGrath said: “The analysis published by my department today highlights some of the vulnerabilities the public finances face from both revenue and expenditure perspectives. On the revenue side, while the headline budgetary accounts look to be in very good shape, this is largely the result of corporation tax receipts, which have increased more than five-fold in the past decade. My department estimates that around half of these receipts could be potentially transitory in nature. Looking ahead, Government is also aware of the major expenditure challenges on the horizon. Shifting demographics and adapting to the climate and digital transitions will impose large costs on the public finances. While the Irish demographic picture is currently favourable, developments in the coming decades will mean that we will be spending significantly more just to maintain the current level of service, all because of an ageing population. The paper my department published today outlines some of the options available to Government to help to mitigate against these risks to the public finances. Taking into account this analysis, it is my intention to bring forward proposals for a long-term savings vehicle which will be used to pre-fund part of the future costs of structural change. The paper also discusses different approaches to using the windfall receipts including for a new long-term savings vehicle, and using a portion to pay down debt and for additional, targeted capital investment. I was pleased to brief cabinet on this paper yesterday. Subject to government approval, setting up such a long-term savings vehicle will require primary legislation.” Further information is available on gov.ie.

Last week the Institute, under the auspices of the CCAB-I, responded to the Department of Finance’s Pillar Two Implementation Feedback Statement. We highlighted the need for legislation to reference OECD guidance materials, similar to the approach taken in recent transfer pricing legislation, and the need to disregard GloBE corporate tax liabilities when calculating preliminary taxes. The Institute will continue to engage actively with Revenue and the Department of Finance via the TALC BEPS Sub-committee over the coming months. If you have comments or concerns, please email tax@charteredaccountants.ie.

Revenue has issued in excess of 20,000 letters to non-resident landlords and their collection agents to inform them of the changes to be introduced to the administration of withholding tax for non-resident landlords. The letters also contain details of the information the landlord will be required to supply to their collection agent or tenants. The Non-Resident Landlord Withholding Tax system is expected to go live from 1 July 2023. The new system provides for tax withheld on rental payments by collection agents/tenants to be remitted and recorded, with scope for bulk uploads. Tax credited to the landlord will be pre-populated in their online tax return. Collection agents will no longer be chargeable persons in respect of the rent where they comply with the requirements of the new regime. The Institute has noted our members’ dissatisfaction with this burdensome requirement and we will continue to advocate for change to this cumbersome process.