In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service bulletin is also available.   Miscellaneous updated guidance etc.   Recently updated guidance, and publications relevant to EU exit are set out below:  Data Element 2/3: Documents and Other Reference Codes (Union) of the Customs Declaration Service Appendix 1: DE 1/10: Requested and Previous Procedure Codes  Making an export declaration using a pre-shipment advice  4-digit to 3-digit procedure to additional procedure code correlation matrix for imports;  Making an export supplementary declaration  Making a full export declaration  Notice to exporters 2024/12: export declarations move from CHIEF to CDS from 4 June 2024  Report a problem using the Customs Declaration Service  Notices made under the Customs (Export) (EU Exit) Regulations 2019  Appendix 2 C21i: DE 1/11: Additional Procedure Codes  Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service  Check if a business holds Authorised Economic Operator status. 

The Directorate-General for Taxation and Customs Union has published the 2024 edition of the Annual Report on Taxation. The report scrutinises the structure of tax revenues across the EU, according to their economic function and the type of tax, with a focus on the differences across countries and over time. In addition, this year the report examines the contribution of tax systems to a competitive and prosperous EU economy. Overall, the report aims to inform stakeholders of recent developments and to provide policymakers with insights that can help them improve the functioning of tax systems in the EU.  

Revenue has updated the Tax and Duty Manual which provides guidance on the payment and receipt of interest and royalties without deduction of income tax. The manual has been revised to address instances which may arise where there is a short delay in receipt of a completed certified Form 8-3-6 Interest, or completed uncertified Form 8-3-6 Interest and tax residence certificate, by the person making the interest payment. 

Revenue has updated the Tax and Duty Manual regarding the rate of tax at which repayments are to be made to reflect the 2024 rate band and tax credit values in its examples.  Section 460 TCA 1997 provides that a repayment of income tax to which a person is entitled, after the granting of any personal tax credit/relief, for any year of assessment, is to be made at the standard rate of tax or the higher rate, as appropriate. Where a person has no taxable income for a year of assessment, any tax paid by them in respect of their income for that year is refundable in full. However, any such repayment cannot exceed the difference between the correct tax liability and the amount of tax actually paid.  

Revenue has updated the Capital Acquisitions Tax Manual regarding Certificates of Discharge. References to "Clearance Letter (Form I.T. 10)" and the "Abolition of the status of CAT as a charge on property that has been the subject of a gift or inheritance in the previous 12 years" have been removed, in accordance with Finance Bill 2010.  

Charities with tax exemption are issued with a reference number beginning with the letters CHY. Section 208B(9) TCA 1997 permits Revenue to publish the name, address and CHY number of a charity. Revenue has updated the Tax and Duty Manual which provides guidance on the Charitable Tax Exemption to include a link to the list of bodies with the exemption. 

Revenue has updated the Tax and Duty Manual which provides guidance on payments made in respect of the Magdalen Restorative Justice Ex-Gratia Scheme. The updated material clarifies that the investment exemption applies to the person who received a 'relevant payment' under the scheme (paragraph 4). In addition, references to pre-2015 claims are deleted as they are no longer relevant. The usual time limits apply with regard to refund claims for the tax year 2015 and subsequent years. 

Section 112 TCA1997 provides the statutory basis of assessment for income tax chargeable under Schedule E, including the persons chargeable and the extent of the charge to tax. The charge to tax covers all salaries, fees, wages, perquisites or profits whatever derived from the office, employment or pension for the year of assessment. Revenue has refreshed the Tax and Duty Manual which provides guidance on the Schedule E basis of charge to improve ease of reference for users. Further information is available in eBrief No.181/24. 

Revenue has updated the Tax and Duty Manual which provides guidance on tax equalisation arrangements. The updated manual states that employers are required to ensure that payroll submissions under shadow payroll arrangements are accurate and reviewed for accuracy on an ongoing basis (paragraph 5, step 2). In addition, examples 5.1 and 5.2 have been updated to reflect Finance (No.2) Act 2023 amendments. 

Revenue has updated its guidance on the online Non-resident Landlord Withholding Tax (NLWT) system which commenced from 1 July 2023.   Section 1041 TCA 1997  provides that the person making the payments will be required to submit a rental notification (RN) providing certain information regarding the landlord and the rental income on which tax is being withheld. The NLWT system allows tenants/other direct payers and collection agents to input RNs for residential or commercial/agricultural properties, and provides a facility for both collection agents and tenants/others to set up a repeat RN. The manual has been updated to include guidance on setting up a repeat RN and creating a direct debit mandate (paragraph 5).  Collection agents and tenants are required to provide the unique property identifier, obtained from the landlord, when submitting the RN, such as the Local Property Tax identifier (LPT ID) for residential property. As rented non-residential properties do not have an LPT ID, the manual now includes guidance on the creation of a commercial ID for such properties (paragraph 9).  Other updates include:  Additional guidance for collection agents (paragraph 11) and non-resident landlords (paragraph 13)  ROS certificate and sub-certificate queries (appendix 2)   Extracts from the Notes for Guidance reflecting the Finance Act 2023 updates (appendix 3).  Further information can be found in eBrief No. 186/24. 

Tax revenues for the first half of the year were €44.7 billion, according to the recent June Exchequer figures. The figures represent a €3.8 billion increase (or 9.3 percent) on the same period last year. Aggregate tax receipts for the first half of 2024 are now ahead of expectations, with the over-performance largely due to corporation tax receipts. An Exchequer surplus of €3.1 billion was recorded in the first half of the year.   The breakdown of tax revenues is as follows:  Income tax receipts were €16.7 billion to end-June, €1.2 billion, or 7.5 percent higher than the first six months of 2023 and somewhat above profile.  VAT receipts to end June were strong at €11 billion, €0.6 billion (6.2 percent) higher than the same period last year and in line with expectations.  Corporation tax receipts of €12.2 billion were collected to end-June, 15.4 percent ahead of the same period last year and 11.2 percent (or €1.2 billion) ahead of profile.  Total gross voted expenditure to end-June amounted to €47.1 billion, €5.2 billion (12.4 percent) ahead of the same period in 2023.  Commenting on the figures, the Minister for Finance, Jack Chambers TD said:  “June is a key month for tax revenues and the strong performance across the first half of the year is a welcome indicator of the health of our economy, most clearly reflected in the robust growth in income tax and VAT revenues.  The stand-out feature is undoubtedly the sharp spike in corporation tax receipts in June, which means that in the year to date, this revenue stream is well above its level in the same period last year.  That said, there has been considerable volatility – in both directions – in corporation tax revenues over the last number of months, underlying the need to treat around half of these receipts as windfall in nature. There is also overwhelming evidence that confirms the highly concentrated nature of these receipts.  The two new investment vehicles – the Future Ireland Fund and the Infrastructure, Climate and Nature Fund – signed into law last month will help us to address some of the risks around windfall tax revenues, but this must be coupled with a balanced approach to budgetary policy. With this in mind, Government will set out the fiscal parameters for Budget 2025 in the Summer Economic Statement, which will be published next week.” 

In Irish news, Revenue publishes key findings from its public consultation on VAT modernisation, guidance on Enhanced Reporting Requirements for employers is updated and the Department of Finance publishes responses to the first Feedback Statement regarding the strawman proposal on participation exemption. In UK news, we take a look at the tax policies of the two biggest parties in Northern Ireland, and HMRC releases its 2022/23 Tax Gap publications. Ireland Revenue has published a report setting out the key findings from the public consultation on modernising Ireland’s administration of VAT. Revenue has updated the Tax and Duty Manual which provides guidance on the Enhanced Reporting Requirements (ERR) for employers. The Department of Finance has published the responses it received to the first Feedback Statement on the strawman proposal on a participation exemption.   UK Read about the tax policies of the two biggest parties in Northern Ireland. HMRC’s 2022/23 Tax Gap publications have recently been published.   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. You can also read this week’s EU exit corner here.