While Hungary continues to resist agreeing to measures to implement a minimum effective rate of corporation tax, Germany, France, Italy, Spain and the Netherlands have pledged to implement a minimum 15 per cent effective corporate tax rate by 2023. As changes to EU tax legislation requires a unanimous decision among Member States, EU Member States are now considering unilateral implementation of the rules.

Bulgaria has deposited its instrument of ratification for the BEPS Convention. The BEPS Convention now covers 1,820 bilateral tax treaties. The BEPS Convention will enter into force on 1 January 2023 for Bulgaria.

Stage 2 peer review monitoring reports have been released for Aruba, Bahrain, Barbados, Gibraltar, Greenland, Kazakhstan, Oman, Qatar, Saint Kitts and Nevis, Thailand, Trinidad and Tobago, United Arab Emirates and Viet Nam under BEPS Action 14, which asks participating jurisdictions to commit to implement a minimum standard to improve the resolution of tax-related disputes between jurisdictions. These reports evaluate the progress made by these 13 jurisdictions in implementing any recommendations resulting from their Stage 1 peer review.

Last week, the OECD held a public consultation meeting focused on the key questions identified in its consultation on the draft model rules to implement a new taxing right that will allow market jurisdictions to tax profits from some of the largest multinational enterprises ("Amount A of Pillar One"). The meeting can now be watched online.

In this week’s EU Exit Bulletin, we bring you the latest guidance updates and publications relevant to EU exit information on how to claim a refund for incorrectly charged interest on customs debt. We also update you on developments in relation to the Northern Ireland Protocol Bill.  Northern Ireland Protocol Bill update  After the appointment of the new Prime Minister Liz Truss last week, the UK Government says it prefers a negotiated outcome with the EU to fix the issues surrounding the Protocol, but emphasised it will resort to legislation should this not be possible. This means that the Northern Ireland Protocol Bill will continue its passage through the House of Lords in the autumn having passed all House of Common stages before the summer recess.  Last week the Prime Minister’s newly appointed cabinet met for the first time on Wednesday. James Cleverly, who was appointed as the new Foreign Secretary, will lead negotiations with the EU on the Protocol. Chris Heaton-Harris takes on the role of Secretary of State for Northern Ireland, with Steve Baker becoming Minister of State in the Northern Ireland Office.   Refunds for incorrectly charged interest on customs debts  During the period July 2018 to April 2022, some businesses were incorrectly charged a £25 minimum interest amount for the late payment of customs duty. Such businesses may be able to claim a refund of the difference between the £25 minimum charge and the actual amount of interest that should have been applied. In addition, between July 2018 and April 2022, HMRC also used an incorrect interest rate which was higher by 0.5 percent to calculate late payment interest on customs debts. Details of how to claim a refund have now been published.  Miscellaneous updated guidance etc.   The latest guidance updates, and publications relevant to EU exit are as follows:-  Customs Declaration Service communication pack;  Transit Manual Supplement;  Making a simplified frontier declaration;  Amend or cancel simplified import declarations;  Customs declaration completion requirements for Great Britain;  Reporting requirements for medicine shortages and discontinuations;  Customs Declaration Completion Requirements for The Northern Ireland Protocol;  Request Customs Declaration Service data on imports;  Customs, VAT and Excise UK transition legislation from 1 January 2021;  Reference Documents for The Customs Tariff (Preferential Trade Arrangements) (EU Exit) Regulations 2020;  New farming policies and payments in England; and  Tariffs on goods imported into the UK.   

In Irish news, the Institute, under the auspices of CCAB-I, made representations on behalf of members at recent TALC meetings and Revenue has provided an update on ROS Offline CT1 filing issues. In UK news, read about the new appointments to HM Treasury and HMRC has now implemented a process designed to make speedier repayments of corporation tax. In International news, the European Commission signed two agreements between the European Union and Ukraine. Ireland The Institute, under the auspices of CCAB-I, represented members at recent meetings of Main TALC and TALC Collections that included updates regarding the debt warehousing scheme and Revenue’s focus on share based remuneration schemes.   Revenue has provided an update on ROS Offline CT1 filing issues. UK Several new appointments have been made to HM Treasury after the new UK Prime Minister Liz Truss was appointed last week.   Read about the new process which HMRC has now implemented which is designed to make speedier repayments of corporation tax. International The European Commission signed two agreements between the European Union and Ukraine that make it possible for Ukraine to participate in the EU’s Customs and Fiscalis programmes.   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.  

Members have raised issues regarding uploading Form CT1s which were prepared using Revenue’s ROS Offline application. Following representations, Revenue has informed us that where a return was started in ROS Offline (i.e. work-in-progress) but was not received by Revenue before the IT release of 16 August, the return cannot be submitted in ROS without a technical amendment. Otherwise the 2021 Form CT1 must be restarted using the updated application to enable the recent updates to be effective. The 2021 Form CT1 Tax and Duty Manual has been updated to include the details of the technical amendment. Forms CT1s that were received by Revenue before the IT release of 15 August 15th were fixed by Revenue and processed accordingly. Further information is available in eBrief no.173/22.

Members have raised issues regarding uploading Form CT1s which were prepared using Revenue’s ROS Offline application. Revenue has informed us that Forms CT1s that were received by them before the IT release of 15 August 15th were received by Revenue and processed accordingly. However, where returns were started in ROS Offline (i.e. work-in-progress) but were not received by Revenue before the IT release of 15 August, the returns must be restarted using the updated application to enable the recent updates to be effective. We will continue to engage with Revenue on this matter.

The Institute, under the auspices of CCAB-I, made representations on behalf of members at last week’s meetings of Main TALC and TALC Collections.  Amongst the issues discussed, Revenue provided updates on debt warehousing, share based remuneration and LPT and asked members to remind taxpayers to update their bank details on ROS if moving accounts from Ulster Bank or KBC. Debt Warehousing Scheme – End of Period 2 In October, Revenue intends to contact taxpayers whose Period 2 ends on 31 December 2022 advising them of the end of that phase and asking them to provide a payment schedule. Those eligible for the April 2023 Period 2 extension will receive letters in February 2023. Revenue reiterated that taxpayers must engage with Revenue before Period 2 ends to outline their plans to pay the warehoused debt. Should a Phased Payment Arrangement (PPA) be required it must be applied for through the normal online channels, with caseworker approval. It is also possible to pay off the debt early. Revenue advised that ROS has been amended so that VAT refunds may be offset against warehoused debt. Revenue reminded the forum that it is vital that taxpayers availing of debt warehousing file all returns, even Nil returns, and pay current taxes as they fall due, otherwise the benefits of debt warehousing will be revoked. Debt warehousing arrangements have been revoked from over 24,000 taxpayers due to outstanding returns. Debt Warehousing Scheme – Self-Review Period 1 Revenue advised that it intends to write to taxpayers in the coming weeks, offering them the opportunity to self-review their tax affairs for Period 1. Revenue will give taxpayers, by concession, time to quantify undisclosed tax liabilities and appropriate penalties from Period 1 and include them within warehoused debt. This window of opportunity is open until 31 January 2023. Initially, Revenue will be writing to the 84,000 taxpayers currently availing of the debt warehousing scheme. A second tranche of letters will then issue to over 200,000 taxpayers, who either could have availed of debt warehousing but did not, or who availed of debt warehousing for a short period. The opportunity to make an unprompted qualifying disclosure of any previously undisclosed debt that would have been eligible for warehousing in Period 1 will be given to them on the same terms as taxpayers participating in the warehouse. The compliance campaign will take place under Level 1 of the Compliance Framework. Beyond the closing date of 31 January 2023, further liabilities identified from Period 1 in relation to warehouse eligible taxes will result in a revocation of warehousing rights and interest and penalties apply as normal. Share based remuneration schemes Revenue reaffirmed its increased focus on employee share scheme compliance, noting that there are numerous inconsistencies in the data provided by employers. Revenue stressed the importance of employer returns and the data contained in these returns. Revenue identified issues at employee level including a lack of awareness and education, in particular in relation to the different tax events a share award can lead to. While Revenue has encountered many innocent errors it is concerned it is not seeing CGT and dividend income where expected. As there is a high volume of cases in scope, Revenue wants to give taxpayers sufficient opportunity to amend matters. Revenue is considering a Level 1 non-filer campaign at the year end. We will keep members updated via Chartered Accountants Tax News. LPT Revenue has informed us that 30,000 Form 11s are currently exposed to the LPT surcharge. To avoid multiple communications, Revenue recommends that taxpayers comply with LPT requirements prior to filing income tax or corporation tax returns. A customer service notification compliance campaign will commence this month with the intention to prompt taxpayers into action. Update bank details on ROS Revenue has asked us to remind readers to update their bank details for both online payments and repayments where they have changed banks as a result of Ulster Bank and KBC exiting the market. Revenue noted that there may be a need to update the details under more than one tax head and across several platforms.

The Institute, under the auspices of CCAB-I, made representations on behalf of members at a recent meeting of TALC MyEnquiries. Revenue provided updates including reply timeframe analysis, contact issues, technical issues and future system developments and enhancements. Revenue is working with operational divisions to improve performance. Where members experience delays in response times, Revenue recommend agents make contact using the Exceptional Contacts facility.

Revenue has published a Tax and Duty Manual providing guidance in relation to the new section 25A TCA 1997 which applies for accounting periods commencing on or after 1 January 2022 in respect of the application of the Authorised OECD Approach (AOA) for the attribution of income to a branch or agency of a non-resident company operating in the State. Further information is available in Revenue’s eBrief 166/22.

Revenue has updated the Tax and Duty Manual for Digital Services Taxes (DSTs) to include the Austrian, Kenyan and Spanish DSTs in the list of DSTs which are accepted as being deductible where incurred wholly and exclusively for the purposes of a trade.