The OECD has published the latest edition of Revenue Statistics in Africa. The publication pulls together tax revenue and non-tax revenue statistics from 33 African countries. The report enables comparison not only between the countries covered in the report, but also with the OECD and other regions.

The African Tax Administration Forum (ATAF) and the OECD have renewed their commitments to promote fair and efficient tax administration in Africa. The cooperation between these organisations amplifies African voices allowing delegates to shed light on the unique challenges and perspectives of the African continent.

The OECD is hosting a virtual event to promote tax certainty. Tax certainty is a priority of the OECD as It promotes investment, jobs and growth. You can sign up for the event until 9 November 2023.

Read our update on key developments in this area since June 2022. HMRC has also made several administrative changes to the Double Taxation Treaty Passport Scheme (“DTTPS”) which is widely used by overseas lenders to ensure UK withholding tax is deducted at the correct rate under the relevant double taxation treaty.  The tax treaties and related documents between the UK and the following countries have been updated:- Czech Republic; Slovak Republic; Cyprus; Chile; Kyrgyzstan; Guernsey; Germany; Luxembourg; India; Isle of Man; Ukraine; and San Marino. Other specific developments of note are set out below:- Use updated form DTTP1 to apply for or renew a Double Taxation Treaty passport; A new UK-Luxembourg Double Tax Treaty was signed in June 2022 and has not yet entered into force; In June 2022, HMRC published a policy paper setting out its change of view on the interpretation of the residence articles in 16 double taxation agreements; Use updated form Canada/Individual to apply for relief at source or claim a repayment of UK Income Tax; Use updated form US-Individual 2002 to apply for relief at source or to claim repayment of UK Income Tax; The UK and Brazil signed a Double Taxation Agreement in November 2022 which has not yet entered into force; and Use updated form DTTP2 to tell HMRC about a 'passported' loan. Changes to the Double Taxation Treaty Passport Scheme (“DTTPS”) HMRC has updated the contact details (both postal and email) for the DTTPS. A number of changes have also been made to the scheme’s terms, conditions and guidance document. HMRC is no longer be reminding passport holders that a passport is due to expire. Previously HMRC guidance  set out that HMRC would write to existing passport holders three months before the passport was due to expire to request completion of a DTTP1 renewal application form. From 20 October 2023 the guidance was updated and now says that HMRC does not issue reminders when a treaty passport is due to expire. The following guidance has therefore been updated accordingly:- Claiming Double Taxation Relief for companies and other concerns; and Double Taxation Treaty Passport Scheme: terms, conditions and guidance.

In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The latest Trader Support Service bulletin is also available in addition to the most recent Cabinet Office Borders bulletin which has returned from a break. The Minister of State has also written to the Chair of the House of Lords Protocol Sub-Committee providing an update the on the implementation of the Windsor Framework. Miscellaneous updated guidance etc. The following updated guidance, and publications relevant to EU exit are available:- Authorised Consignee Temporary Storage (ACTS) location codes for Data Element 5/23 of the Customs Declaration Service; Remote internal temporary storage facilities codes for Data Element 5/23 of the Customs Declaration Service; Importing bananas you have to pay duty on into the UK; Authorisation type codes for Data Element 3/39 of the Customs Declaration Service; Additional Information (AI) Statement Codes for Data Element 2/2 of the Customs Declaration Service (CDS); Upload documents and get messages for the Customs Declaration Service; Customs Declaration Completion Requirements for The Northern Ireland Protocol; Internal temporary storage facilities (ITSFs) codes for Data Element 5/23 of the Customs Declaration Service; Transit newsletters — HMRC updates; Locations which need a pre-lodged declaration; List of ports using the Goods Vehicle Movement Service; and EM on Windsor Framework customs arrangements.

This week we bring you news about HMRC letters to agents about a potential discrepancy on 2021/22 self-assessment returns, and HMRC has moved the Check Employment Status for Tax tool on to a new platform. The guidance on how remove a taxpayer from the self-assessment regime has been enhanced with two new videos and it is now possible to apply online to join the VAT flat rate scheme. The latest News and Information Bulletin from HMRC is also available which includes a reminder about the planned outages from 6-9 November because of IT upgrades, which we told you about last week. Potential 2021/22 self-assessment discrepancies project We are aware that from early October 2023, HMRC began sending letters to agents about potential discrepancies between their clients 2021/22 self-assessment return when compared to the P11D and P14 forms submitted by employers or child benefit information held by HMRC. The letter does not mention specific clients but advise the agent that HMRC will be in touch within three weeks (unless the agent contacts HMRC first) to share details of the clients where there are potential discrepancies.  According to the letter, if there are any discrepancies, as long as an amendment is made by 31 January 2024, HMRC will not charge a penalty. However, if no voluntary amendment is made by then, HMRC will review and consider making a discovery assessment and charging a penalty. Where an amendment results in an underpayment of tax, interest will apply from the original due date. A late payment penalty may also be payable. HMRC’s aim is to resolve these cases in advance of the 31 January 2024 online filing deadline for 2022/23 self-assessment returns. Check Employment Status for Tax HMRC recently moved its Check Employment Status for Tax (“CEST”) tool to a new platform. The move has not resulted in any changes to the questions asked however users of the tool can now review the answers to their questions after each section. In addition, guidance from HMRC’s employment status manual is now embedded in CEST. Removing a taxpayer from self-assessment HMRC has recently launched two new YouTube videos explaining the online process for taxpayers to stop self-assessment:- How to go online and stop self assessment if you're self employed; and How to go online and stop self assessment if you're not self employed. If a taxpayer believes they no longer need to complete a self-assessment return for 2022/23, it is important that they take action before the 2022/23 online filing deadline of 31 January 2024 in order to avoid being charged a penalty. Apply online to join VAT flat rate scheme HMRC recently launched a new online form which should be used by businesses to apply to join the VAT flat rate scheme (a scheme that simplifies VAT accounting for businesses with an annual turnover of no more than £150,000). Applications can still be made by post.

We recently advised that from mid-November 2023, HMRC will no longer be providing paper VAT1 registration forms on GOV.UK. This will only be available on request from the VAT helpline in exemption cases and certain limited scenarios where online registration is not currently possible. Businesses who are exempt from applying online will still be able to apply by post using a paper VAT1 form. Essentially the exemption from applying online mirrors that available under Making Tax Digital for VAT. HMRC has now confirmed that Monday 13 November 2023 is the date from which VAT registration applications must be made online in the majority of scenarios using the VAT registration service (“VRS”). It has been confirmed that those who cannot apply online are not required to apply for an exemption in advance. However, when calling the VAT helpline, HMRC will ask why a paper VAT registration form is being requested.  It should also be noted that there are several specific types of VAT registration that cannot use the VRS which includes entities (except for UK partnerships or non-established taxable persons) without a unique taxpayer reference. A full list of these is not currently available. Such businesses should call the VAT helpline to request a paper VAT1 registration form. However, HMRC is aiming to add those businesses to the VRS in future, which means that the paper VAT1 form will no longer be available once online registration via the VRS is introduced.   HMRC has also confirmed that should a digitally excluded taxpayer use the services of an agent then the application should be a digital one via the VRS. Work is ongoing to update HMRC’s guidance pages to remove the downloadable VAT1 form, and direct taxpayers to the VRS digital route. This includes letting them know what evidence will be required to be provided in advance of starting an application, including ID verification requirements. At a recent Joint VAT Consultative Committee Meeting, which Chartered Accountants Ireland participates in, external stakeholders asked about the move to more digital routes and if HMRC had tested this with external users, particularly for large organisations with diverse teams over a number of offices. This was particularly raised in the context of submitting online for the first time where it may not be clear what information is going to be needed to start the online form. Forms sometimes disappear after 28 days which can be an issue in larger organisations where it may take longer than this to complete the form. It is also the case that when submitting a form online, all that an employee needs to do is enter the organisation’s email address and tax reference. However, there is no scope to confirm that the submission has been made by the authorised signatory or that the authorised signatory has authorised the submission to be made on their behalf. HMRC’s response to this is set out below. “Prior to HMRC moving to the new VAT Registration Service extensive user research was conducted over a 3-year period with a range of users including agents. The feedback from user research was that the data being requested was reasonable and would be able to be sourced within the timescales provided. HMRC introduced the ability to ‘Save and Return’ an application. This enabling the user the time to gather relevant data if required, without the need to restart their journey again.   The length of time the application remains available is 28 days from the last log in activity, so by using the Save and Return function the length of time to complete the application will extend beyond the 28 days.  On 15 June we updated Register for VAT: How to register for VAT - GOV.UK (www.gov.uk) to include more information on what is required by someone submitting an application for VAT registration. The VRS journey mirrors the VAT1 form and the VAT 1 completion guidance can be used to prepare applications ahead of logging into VRS. VRS asks for the person completing the form to declare the capacity in which they are doing so. Part of the HMRC Charter is that we trust the information being provided to us unless we have good reason not to.   At the point of registration, we will trust that the person submitting the form is an appropriate person to do so, though we do have validation and verification processes in place to inform that decision.   There is no long-standing relationship created by someone applying on behalf of someone else, to do so the appropriate authorisations would need to be completed.”

Revenue has published updated guidance regarding Revenue Online Service (ROS), the Return Preparation Facility (RPF) and ROS Pay and File tips in advance of the personal tax extended deadline of Wednesday 15 November 2023. The extended deadline applies to taxpayers who both file their 2022 Form 11 return and pay the appropriate taxes using ROS. The extension does not apply where only one of these actions is completed through ROS. As previously advised, the RPF has replaced the ROS Offline Application for preparing Form 11s offline.  Specific updates include information regarding taxpayers inputting/amending bank account details, refunds in ROS and confirmation that the use of commercial credit cards is no longer accepted for payments. Phased Payment Arrangement notices are noted as priority messages in ROS inboxes.   The guidance is also updated for the use of the Iris chatbot and the development of the RPF to replace ROS Offline. The updated guidance warns about using commas, dots or other symbols when naming and saving files in the RPF. 

Revenue has issued a press release to remind residential property owners about their Vacant Homes Tax (VHT) and Local Property Tax (LPT) obligations. Readers are reminded that tomorrow, Tuesday 7 November 2023, is the return filing date for the VHT. Property owners are also reminded that, where a residential property was newly built or has become occupied or suitable for use as a dwelling between 2 November 2022 and 1 November 2023, it is liable for LPT in 2024.  The VHT is due on residential properties that are liable to LPT and are occupied for less than 30 days in the year ending 1 November 2023. Further information is available on the Revenue website.   VHT returns can be submitted via Revenue’s myAccount, ROS or the LPT Portal. The system will guide property owners through the three-step process to review their details, submit their return and make a payment if necessary.   Revenue is writing to 800,000 property owners to remind them to set up their LPT payment option for 2024. The LPT on a residential property for 2024 is based on the valuation of the property at 1 November 2021.   Where a residential property has been newly built, or it has been refurbished and has become occupied, or suitable for use as a dwelling, between 02 November 2022 and 01 November 2023, the property is newly liable for LPT in 2024 as of 1 November 2023. A taxpayer who owns a property which is newly liable for LPT is required to value their property as at 1 November 2021. Guidance on conducting this valuation is accessible here with further information on LPT available on Revenue’s dedicated LPT webpage. 

The October Exchequer figures show that tax revenues of €66.5 billion were €2.5 billion ahead of the same period last year, primarily driven by income tax and VAT. However, an Exchequer deficit of €0.9 billion was a recorded to end-October, €8.2 billion down on the same period last year. Cumulative corporation tax receipts of €15.7 billion in the first ten months of the year are €0.4 billion, or 2.7 percent, below their level in the same period last year. This reflects the weakening of exports over the past year and, in particular, the decline in pharmaceutical exports.  The Department of Finance press release on the publication of the October Exchequer figures, notes that corporation tax receipts declined for the third consecutive month year-on-year. October 2023 corporation tax receipts of €1.3 billion were down €1 billion on October 2022.  Commenting on the figures, the Minister for Finance, Michael McGrath T.D. said:  “The end-October Exchequer returns present a mixed picture of our public finances. While income tax and VAT remain steady, demonstrating the underlying strength of our economy, we have now seen corporation tax decline for a third consecutive month.  A fundamental building block of the Government’s fiscal strategy is the assumption that a large part of the increase in corporation tax receipts in recent years is windfall in nature.  This is why it is so important that permanent fiscal commitments are not made on the basis of windfall revenues; instead, running a budgetary surplus is the correct approach.  It is also why, in Budget 2024, I announced the establishment of two new long-term investment funds – the Future Ireland Fund and the Infrastructure Climate and Nature Fund – that will allow us to invest temporary ‘windfall’ corporation tax receipts to provide resources for known future fiscal challenges and ensure that these receipts do not become part of the permanent expenditure base.  I am working with my officials to progress the necessary legislation and this is a key priority for the Government in the year ahead.” 

Revenue has updated the Pensions Tax and Duty Manual which provides contact information for pensions governance authorities. The useful contacts document has been updated to include the new address for Revenue's Large Cases - High Wealth Individuals Division Pensions Branch, situate at Castle View, South Great George's Street, Dublin 2. 

Platform operators must register with Revenue for the purpose of the Council Directive (EU) 2021/514 (DAC7) by 30 November 2023. Irish based platform operators should register via ROS. Non-EU based platform operators, carrying out relevant activities, or relevant activities involving immoveable property located in a member state, should register using the non-resident registration portal which opened on 1 November 2023.   Revenue expects the DAC7 reporting portal to be available from 1 January 2024. Further information is available on Revenue’s dedicated DAC7 webpage.