The Oireachtas Joint Committee on Finance, Public Expenditure and Reform and an Taoiseach has released a reasoned opinion on the European Union’s proposals for a directive on Business in Europe: Framework for Income Taxation (BEFIT). In the Committee’s view, the BEFIT proposals do not comply with the principle of subsidiarity which requires that for a directive to have direct effect, the aims of that directive must not be achievable at national level and instead be better achieved at EU level.   The Committee stated that while it supports efforts to simplify tax systems and reduce the complexity of doing business in Europe, proposals of this nature must bring with them benefits that outweigh the cost and complexity of introducing them.   In our response to a public consultation on the BEFIT proposals last year, we highlighted that direct taxation should remain the sole responsibility of the national legislators on the basis of the principle of subsidiarity, as well as the principle of sovereignty. 

Revenue has updated the Stamp Duty Manual which provides general guidance on the application of section 80 SDCA 1999 to include more comprehensive guidance on the application of this section. Section 80 provides for an exemption from stamp duty on the transfer of certain property in connection with a scheme for the bona fide reconstruction of a company, an amalgamation of companies or a merger of companies undertaken in accordance with Chapter 3 of Part 9 or Chapter 16 of Part 17 of the Companies Act 2014.  

Revenue has published details of compliance with the enhanced reporting requirements (ERR), which came into effect on 1 January 2024. Revenue’s figures indicate that at 31 January 2024 over 66,000 submissions had been made by approximately 17,500 employers. These submissions relate to over 702,000 payments and benefits provided to 226,800 individual employees and directors valued almost €86 million.  Revenue has provided an analysis of the submissions as follows:  14,000 remote working daily allowance payments, valued at almost €0.7 million,  32,000 qualifying incentives under the small benefit exemption, valued at €19.3 million, and  656,000 non-taxable travel and subsistence payments, valued at €65.9 million.  Revenue will continue supporting employers and agents to comply with ERR and will host further informational webinars. Employers and agents can also contact Revenue through MyEnquiries if they have any queries, and further support is available through the National Employer Helpline, which can be contacted on (01) 738 3638 between 09.30 and 13.30 Monday to Friday.  Feedback on issues or problems you experience with the new ERR reporting regime can be emailed to the Institute and we will continue to engage with Revenue through the TALC forum. We will keep you up to date on developments in Tax News.  

The OECD is hosting the latest session in its Tax and Development Days series. This event provides an update on some of the OECD's initiatives to strengthen tax capacity and improve tax policy and compliance in developing countries and explore future challenges. Members of the public can register for this event, which is taking place virtually, and attendance is free of charge.

Costantino Lanza and Simone Brogi, two key members of the Commission’s Directorate-General for Taxation and Customs Union (DG TAXUD), recently gave a short interview discussing the new VAT Central Electronic System of Payment Information (CESOP). They discussed that the purpose of CESOP, which is an EU centralised database to which tax administrations send relevant data, is to reduce the VAT gap by enabling tax authorities to better identify online sellers of goods and services.

Revenue is to host a number of additional webinars in February 2024, using Eventbrite, to give an overview of the Enhanced Reporting Requirements (ERR). The webinars also give employers and agents the opportunity to ask questions regarding the operation of ERR. Earlier this month Revenue issued notices to employers’ ROS inboxes advising them of these free online webinars.   Feedback on issues or problems you experience with the new ERR reporting regime can be emailed to the Institute and we will continue to engage with Revenue through the TALC forum. We will keep you up to date on developments in Tax News.  

The Department of Finance has published the responses it received to its public consultation on the introduction of a participation exemption to the Irish corporation tax system. In December 2023 the Institute, under the auspices of the CCAB-I, responded on the basis that it supports the introduction of a participation exemption for both foreign dividends and foreign branch profits. There were 17 submissions to the Department and the full list can be accessed at gov.ie.  

Revenue has updated the Tax and Duty Manual relating to the use of Revenue documentation to verify personal addresses for non-Revenue purposes. The manual provides information on updating personal name or address details in myAccount to appear on Revenue documentation regarding the Employment Detail Summary (EDS) and the Summary of Pay and Tax Details. 

Revenue has restructured the Tax and Duty Manual which provides guidance on the application of special provisions relating to uncertificated securities. Part 6 of the Stamp Duties Consolidation Act 1999, which currently comprise sections 75, 75A, and 78A to 78J, makes provision for electronic transfers of interests in securities (such as shares) to be chargeable to stamp duty. Stamp duty is to be charged by deeming the transfer order which effects the transfer of an interest in securities to be an executed instrument of conveyance or transfer of the securities concerned.   Additional guidance has been added regarding:  The circumstances in which a conveyance or transfer of securities is chargeable with stamp duty;  The accountable person in relation to a transfer order; and,  Clarification that where a transfer order effects the transfer of an interest in securities outside a relevant system, the obligation to retain records does not apply in relation to a Central Securities Depository (CSD). Revenue accepts that the obligation to retain records does not apply in respect of any transfer order which is excluded from the scope of section 78B by virtue of subsection (4) of that section SDCA 1999. 

Revenue has updated the Tax and Duty Manual which provides an overview of dealing with stamp duty issues and information on stamp duty charges and self-assessment. The updated manual provides additional information on the categories of stamp duty charges, including the application of stamp duty where a sale of stocks or marketable securities is effected by electronic means, such that no instrument of transfer is created. 

Revenue has updated the Tax and Duty Manual that sets out the basic principles of the self-assessment system for income tax and capital gains tax. The updated manual reflects the change introduced by Finance (No. 2) Act 2023 regarding the taxation of gains realised on unapproved share options. From 1 January 2024 tax arising on the exercise, assignment or release of rights to acquire shares or other assets shall be collected by the employer via payroll under the PAYE system.  The self-assessment regime continues to apply to gains arising on or before 31 December 2023, as does the obligation to register for Relevant Tax on Share Options (RTSO).  

In October 2023, HMRC announced that the 31 October 2023 deadline for the end of the VAT margin scheme for second hand vehicles moved from Great Britain (“GB”) to Northern Ireland (“NI”) prior to 1 May 2023 was being extended to 30 April 2024. This six-month extension followed extensive lobbying from Chartered Accountants Ireland in September and October 2023. We are now issuing a reminder that the extended deadline of 30 April 2024 is in just over two and half months.   This means that any vehicles moved from GB to NI prior to 1 May 2023 but sold after 30 April 2024 will require output VAT to be charged on the full selling price, and not on the margin. Businesses affected should check how such stock is selling – please contact us to discuss if this vehicle stock continues to be slow-moving.