The International Accounting Standards Board (IASB) has proposed changes to IFRS 3 Business Combinations and IAS 36 Impairment of Assets in its recently released Exposure Draft. The objective of the proposed changes are to improve the information that companies provide to investors about company acquisitions. This improved information is then intended to help investors to assess decisions to make acquisitions and the performance of acquisitions. The proposals to amend IFRS 3 and IAS 36 are intended to require companies to disclose better information about their acquisitions and to make targeted changes to the impairment test. The exposure draft remains open to public comment until 15 July 2024.

In Irish news, we bring you an update from the recent meeting of the main Tax Administration Liaison Committee (TALC) and Revenue has provided an important update regarding R&D claims for 2022 and 2023. In UK news, HMRC has halted the changes and restrictions to various helplines that were announced earlier this week, and today is your last opportunity to provide information to us on VAT margin scheme vehicles brought into Northern Ireland from Great Britain before 1 May 2023 which remain unsold. In International news, the European Commission has commenced a public consultation seeking feedback on the Directive on Tax Dispute Resolution.  Ireland Read our update from the recent meeting of the main Tax Administration Liaison Committee (TALC). Revenue has provided an important update regarding R&D claims for 2022 and 2023. UK The changes and restrictions announced by HMRC earlier this week in respect of various helplines will now not go ahead. Today is your last opportunity to provide information to us on VAT margin scheme vehicles brought into Northern Ireland from Great Britain before 1 May 2023 which remain unsold. International The European Commission has commenced a public consultation seeking feedback on the Directive on Tax Dispute Resolution. 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.

Chartered Accountants Ulster Society says reduced Corporation Tax rate plus renewed FDI interest could kick start local economy The Chairman of Chartered Accountants Ulster Society has said that Northern Ireland’s unique post-Brexit trading position could be Northern Ireland’s key economic advantage in the year ahead. Speaking to 400 guests at the Ulster Society’s Annual Dinner, sponsored by Danske Bank and MCS Group tonight (20 March), Paul Millar said that chartered accountants across Northern Ireland had identified the key opportunities for the economy, with dual market access to the UK and EU rating highly. Another key opportunity identified by Ulster Society members was the potential to attract investment and boost job creation through a reduced Corporation Tax rate. Paul Millar said: “Two-thirds of our members believe that Northern Ireland can benefit from devolved Corporation Tax powers and a lower rate to match that of the Republic of Ireland.  “If we can combine dual UK/EU market access, a competitive Corporation Tax rate, plus take advantage of the renewed interest in investment into Northern Ireland from the USA and elsewhere, it could be a game changer. The talent is here, the success stories are here, and the potential is right here. “With the right approach, an entrepreneurial mindset and everyone pulling in the right direction we have a tremendous opportunity to be a unique business hub. If we can take that opportunity, it means a better standard of living for everyone with better job, public services and better prospects. “We live in straitened times, but we need to find solutions. We need to focus on opportunities because they are there. Strategic initiatives could have a big part to play.” Mr Millar’s speech also highlighted the role of political leadership and the need to build on the confidence generated by the restoration of the Northern Ireland Assembly: “It’s really positive that we now have restored political leadership back at Stormont, ready to face the challenge. We also have a great opportunity to create a resurgence in economic optimism and determination, spurred on by renewed leadership and a clear vision for the future. “Encouraging entrepreneurship is not just about financial gains. It's about empowering individuals, revitalising communities, and shaping a brighter future for generations to come. “Northern Ireland is a great place to live and a great place to do business. There is so much potential and much to be positive about. We need to work together, with the right mindset, to take the opportunity that is in front of us.” Providing entertainment for guests at the Ulster Society Annual Dinner were adventurer, entrepreneur and author Debra Searle MVO MBE, and one of Northern Ireland’s most highly regarded performers Peter Corry MBE. The Chartered Accountants Ulster Society’s Annual Dinner took place at Titanic Belfast and was attended by 400 members and their business guests.  

As reported last week, at the most recent meeting of the TALC Indirect Taxes Sub-Committee, officials from Revenue’s National Business Tax Registration Unit gave a presentation on VAT registrations. Revenue has kindly agreed to share the slides from that presentation and you can find them here. The presentation includes useful information on the screening of VAT applications, reasons for disallowed VAT applications, information to include on a VAT application, information on ‘intention to trade’ applications, as well as information on EU and customs applications.

The latest data on taxation trends in the EU indicates that nominal tax revenues collected by EU member states reached a record value in 2022, totalling €6.388 billion (an 8 percent increase on 2021). The data also indicates that the average tax burden (measured by taking the total tax revenues received as a percentage of GDP) decreased slightly in 2022. The average tax burden in the EU is 40.2 percent, with Ireland’s tax-to-GDP ratio for 2022 being the lowest at 20.9 percent.

The European Commission has commenced a targeted feedback campaign to provide stakeholders with the opportunity to give their views on the EU’s framework for resolving cross-border tax disputes in relation to double taxation issues. The DRM (Directive on Tax Dispute Resolution Mechanisms) came into force on 1 July 2019 and introduced further rules and more stringent deadlines to resolve cross-border tax disputes. In accordance with Article 21 of that Directive, the Commission is now conducting a review and preparing a report on its functioning, with a focus on the Directive’s implementation in its first years.

Revenue has recently published the following updated guidance:  Incapacitated Child Tax Credit (updated to reflect Finance (No. 2) Act 2023, and the applicable credit for prior years).  Employed person taking care of an incapacitated individual (refreshed examples).   Forfeitable shares (updates to the examples).  Tax relief on retirement for certain income of certain sportspersons (refreshed examples).  Using online methods to make a payment to Revenue (updated information on Relevant Tax on Share Options (RTSO)).  PAYE/USC regulations – emergency tax (updated to reflect increased tax bands in Finance (No.2) Act 2023).  EU mandatory disclosure of reportable cross-border arrangements (guidance on the operation of DAC6). 

Revenue has published a new Tax and Duty Manual regarding the Directive on administrative cooperation (DAC) in the field of taxation. The DAC provides for the automatic exchange of information between the tax administrations of EU member states. The new manual provides a roadmap to the Irish transposition of the DAC with general guidance on the scope and application of the DAC and amendments to it. 

The filing deadline for entities with EU cross-border payments reporting (CESOP) obligations in Ireland is 30 April 2024. The registration facility for CESOP filers opened in Revenue Online Services (ROS) on 1 February 2024.   Payment Service Providers (PSPs) who register for CESOP reporting in Ireland may use the ROS process to certify agents or service providers to file CESOP reports on their behalf. Revenue has advised that non-resident PSPs should commence the registration process at least one month before the 30 April filing deadline as a two-step verification process must be completed when registering for CESOP in Ireland.   Further information is available in eBrief no.079/24. 

Revenue has updated the Tax and Duty Manual regarding donations to approved bodies to reflect the previously reported amendment to the definition of "sport" in section 235 TCA 1997. That section now defines "sport" as covering competitive and recreational sport. The sporting bodies that were previously granted exemption up to and including tax year 2022, will retain the exemption provided they meet the other conditions of the section. 

Revenue has updated the Tax and Duty Manual regarding the Help to Buy (HTB) scheme to reflect the extension of the relief to 31 December 2025. The updated manual provides further clarity (at paragraph 16) around the raising by Revenue of an assessment and includes new guidance as regards registering as a qualifying contractor (paragraph 9.1). 

Revenue has updated the Tax and Duty Manual to reflect the increase in the home carer’s tax credit to €1,800 for 2024 (from €1,700 in 2023) as provided for in Finance Act 2023, together with a new table to show the credit amount for prior years. The revised guidance also reflects updates to the associated income thresholds and refreshed examples.