Revenue recently published preliminary results for 2022 which provides data on tax and duty collected, compliance rates, the yield from interventions along with details of assistance provided under critical government support schemes.   Revenue collected €62.2 billion in taxes and duties and over €22.3 billion on behalf of other government departments, agencies, and EU Member States.  Timely compliance rates by Irish taxpayers for 2022 remains strong with 98 percent compliance by taxpayers in Revenue’s Large Cases and 96 percent in Medium Cases Divisions and compliance at a rate of 86 percent in other divisions of Revenue.  Revenue conducted risk management interventions generating €813 million. Revenue also secured 9 convictions for serious tax evasion and fraud, published 53 tax settlements in the List of Tax Defaulters and settled 104 tax avoidance cases yielding €16.1 million. Revenue oversaw the payment of €806.6 million under the Employment Wage Subsidy Scheme to 23,330 eligible employers in respect of 327,242 employees. The Temporary Business Energy Support Scheme has paid claims of €5.9 million to 2,984 businesses in its short time of operation. More than 70,000 businesses and individuals are availing of the Debt Warehousing Scheme in respect of just over €2.48 billion of tax debt. For more details on Revenue preliminary results for 2022 see Revenue’s press release.

Revenue has published a Tax and Duty Manual clarifying the tax treatment of payments received under the Basic Income for the Arts (BIA) pilot scheme launched in April 2022. Individuals who qualify for the scheme receive a payment of €325 per week. The scheme is administered by the Department of Tourism, Culture, Arts, Gaeltacht, Sports and Media and is open to eligible artists and creative arts workers.

The Department of Housing, Local Government and Heritage has published an infographic outlining the timeline and processes for the implementation of the Residential Zoned Land Tax (RZLT). The first phase commenced 1 November 2022 when local authorities published draft maps showing lands that will be subject to RZLT. Landowners and others have until 1 January 2023 to make a submission to their local authority regarding the inclusion/exclusion of their lands from the draft maps, or to request a change of zoning of land. The RZLT will apply from 2024 to relevant land at a rate of 3 percent of market value. Considered by government to be an important component of the pathway to increasing new housing supply, contained in the Housing for All plan to 2030, the aim of the tax is to activate land for residential development rather than to raise revenue. Welcoming the publication of the Draft Residential Zoned Land Tax Maps, Minister Donohoe said: “This is an important step in the RZLT implementation process whereby land within scope of the tax has been identified by local authorities. Landowners whose land is included on a draft map should now review the map and consider if their land meets the criteria for inclusion and make submissions to their local authority accordingly. Residential properties, while they might be on the map, are not liable for the tax if they are subject to LPT. In the course of 2023, supplemental and final maps will be prepared by local authorities identifying the land within scope; the final map will be revised annually from 2025 onwards. Ireland requires increased housing supply to meet our housing needs. The RZLT aims to incentivise landowners to activate existing zoned and serviced residential development land for housing on identified lands and lead to the building of more homes.” Further details are included in the Department of Finance press release.

The October Exchequer figures show that tax revenues were €6.4 billion ahead of profile and €13 billion up on the same period last year. Contributing to this was the strong performance of corporation tax receipts, which were nearly €4.8 billion higher than profiled. The annual increase is, in part, flattered by Covid-19 restrictions that were in place in the early part of last year. Corporation tax receipts of €2.3 billion were reported in the October tax revenues. This is €1.2 billion higher than profiled. The Department of Finance press release on the publication of the October Exchequer figures, notes that it is not expected that such a high level of receipts will be repeated in future years. The Minister for Finance discussed the continued uncertainty within the corporation tax base despite the 12-month rolling Exchequer surplus of €7.3 billion, as such revenues may prove transitory. Commenting on the figures, the Minister for Finance, Paschal Donohoe T.D. said: “Today’s figures show that tax receipts remain strong at the start of the fourth quarter. However, the strength of potentially volatile corporate tax receipts continue to provide an artificially positive picture of the public finances. As I have warned on many occasions, while these receipts are welcome, it is imperative that that Government does not build up permanent fiscal commitments on the basis of revenues that may prove transitory.   Budget 2023 was, of course, a ‘Cost of Living Budget’ focused on mitigating inflationary pressures. The Government has aimed to strike a delicate balance between providing assistance to those suffering the most but without adding fuel to the fire of inflation, while ensuring that we retain sufficient firepower to respond to further challenges over the coming years.   That is why I allocated €2 billion to the National Reserve Fund this year, with a further €4 billion to be transferred next year.  This policy instrument is aimed at further enhancing the resilience of the public finances and will enable the Government to respond in a pro-active manner should risks materialise over the coming period.” Further details are included in the Fiscal Monitor October 2022.    

The Department of Finance has published the responses it received to its public consultation on a Territorial System of Taxation. In March 2022 the Institute, under the auspices of the CCAB-I, responded on the basis that an elective territorial-based system of taxation should be introduced in Ireland by 1 January 2023, with a participation exemption and exemption for branch profits included. There were 15 submissions to the Department and the full list can be accessed here.

The Tax Appeals Commission (TAC) has published a catalogue of the TAC determinations published since its establishment in 2016 up to 3 October 2022. TAC determinations are catagorised by tax head and are accessible here.

Prior to the introduction of the Special Assignee Relief Programme (SARP) there was an expatriate-based tax relief available under section 825B Taxes Consolidation Act 1997 to individuals who were not Irish domiciled and who, before they came to the State, were living and working in a country with which Ireland had a double taxation agreement. As the latest tax year in which the relief could be claimed was 2015, Revenue has removed Tax and Duty Manual Part 34-00-08 as it is no longer relevant.

The Department of Finance published its Annual Report for 2021. The report relates to the Department’s performance and the work undertaken in achieving the strategic goals of the Department. These include achieving a balanced, sustainable macroeconomic environment and sound public finances, a well-regulated, sustainable financial sector, international leadership in economic, fiscal and financial decision making and promoting environmentally sustainable progress.

Revenue has updated its 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 revised guidance sets out the role of the International Tax Division.

The Department of Finance has published a review of the Help to Buy Scheme by Mazars. The scheme is intended to assist first time buyers (FTBs) to save for the deposit required to qualify for a mortgage for the purchase of a newly built residential property. The report notes that the scheme is poorly targeted and promotes demand for new housing in a market where there are supply constraints, while highlighting the deadweight associated with the expenditure. The Mazars report states that, “[t]here are weaknesses in the Help to Buy scheme and it cannot be concluded that it is sufficiently efficient to represent good value for money. Consequently, we conclude that it should be withdrawn. However, now is not the time to do so.” The report recommends an extension of the scheme for two years only, while removing self-builds from the scheme and increasing the minimum mortgage loan-to-value ratio from 70 percent to 80 percent, during which time a move away from a tax expenditure scheme towards a scheme under the direction of the Department of Housing, Planning and Local Government should be facilitated. However, in Budget 2023 the Minister for Finance announced an extension of the Help to Buy scheme, at current rates, to the end of 2024.

Revenue has published a new Tax and Duty Manual to provide guidance for caseworkers conducting compliance interventions in respect of employers who have incorrectly operated payroll taxes. The guidance deals only with cases where an update of the employee’s payroll record is required due to the incorrect operation of the PAYE system by an employer as a result of error or carelessness. This guidance will apply to any self-correction or qualifying disclosure received and/or Revenue compliance intervention initiated following the publication of this Tax and Duty Manual.

Revenue has published updated guidance regarding its Revenue On-line Service (ROS) and useful ROS Pay and File tips in advance of the personal tax deadline of 31 October 2022. The deadline is extended to Wednesday, 16 November 2022 where the taxpayer both files their 2021 Form 11 return and makes the appropriate payment for 2022 Preliminary Tax and the balance of 2021 Income Tax using ROS. The extension does not apply where only one of these actions is completed through ROS. The updated ROS Tax and Duty Manual includes information on new services such as Trust Register Functions, the redesign of the ROS ‘Login’ and ‘Manage My Certificate’ screens, MyEnquiries auto-registration for new ROS registrations and information on updating a bank account in an RDI. The updated ROS Pay and File Useful Tips Tax and Duty Manual is to assist taxpayers and their agents to comply with their ROS Pay and File obligations. The guidance includes information on the calculation and payment of 2022 preliminary tax, CGT self-assessment, CAT and PAYE return deadlines, updates to the 2021 Form 11 and the ROS Offline application. Further information is available in Revenue eBrief no. 178/22.