Revenue has updated its Tax and Duty manual for accelerated loss relief under section 396D TCA 1997 as it is no longer available due to the time limits provided for in the legislation.

Agent Update: issue 102  is available now and features the Real Time Information treatment of reporting salary advances for employees. HMRC has also launched a new income record viewer for agents. Get the latest guidance and information which also includes:- The Plastic Packaging Tax – check if your clients need to register; HMRC is now using card readers to take payment; Business advisers: help your employer clients stay on top of their workplace pensions duties; Preparing for the new tax year basis of assessment for income tax; and A change in the way HMRC checks VAT repayment claims (new digital G-form).

HMRC’s latest schedule of webinars is now available for booking. Spaces are limited, so take a look now and save your place. If you have any questions, please send them to email HMRC prior to the webinar, including the title of the webinar in the ‘Subject’ line of your email. HMRC will answer as many questions as possible on the day. An overview of the new VAT late submission, late payment penalties and interest changes: Register here This webinar will explain the new VAT penalties and VAT interest changes which will replace the VAT default surcharge for VAT accounting periods starting on or after 1‌‌‌ January‌‌‌ 2023.

Revenue has published several updated Tax and Duty manuals reflecting Finance Bill 2021 changes to the taxation of non-resident corporate landlords in receipt of Irish rental income. With effect from 1 January 2022, corporate landlords are subject to corporation tax on Irish rental income and on any gain on the disposal of an asset, the profits/gains from which are chargeable to tax under Case V of Schedule D, unless the gain arises on the disposal of development land. A gain on disposal of development land is subject to capital gains tax.

The Minister for Finance, Paschal Donohoe and Minister for Tourism, Culture, Arts, Gaeltacht, Sports and Media, Catherine Martin, have launched the Tax Credit for Digital Games. Following approval by the European Commission, the regulations have been formally signed to give full effect to the legislation. The relief will take the form of a refundable corporation tax credit available to digital games development companies for qualifying expenditure incurred on the design, production and testing of a digital game. It will be available at a rate of 32 percent of eligible expenditure up to a maximum limit of €25 million per project. There will also be a per project minimum spend requirement of €100,000. The introduction of the Digital Games Tax Credit aims to capitalise on the synergies within established film and animation sectors to support the expression of Irish and European culture, and to support quality employment in creative and digital arts in Ireland. In welcoming the measure, Minister Donohoe stated: “I am delighted to announce the launch of the Tax Credit for Digital Games. Ireland is already a world leader in other areas of the audio-visual sector including film, television and animation production, I believe that this credit will be instrumental in replicating such successes in the digital gaming sector. The introduction of this credit will ensure that Ireland is competitive in an industry that is estimated to be worth up to €260 billion.”  

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in. A recent post in the forum confirms that if an employer pays PAYE by direct debit, late payment interest is charged from normal due date of PAYE and then cancelled once payment is received by direct debit a few days later. All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes.

Revenue has updated its guidance on the Temporary Business Energy Support Scheme (TBESS), including updated guidance on registering and making claims. The guidance, available on Revenue’s website, includes screenshots from the TBESS e-Registration portal and sample electricity and natural gas bills to assist businesses.  Revenue has also published a guide to assist businesses in understanding their energy bill. The ‘Understanding your bill’ guide will be updated in advance of the claim stage and is available here.  

Following the European Commission’s approval of the Temporary Business Energy Support Scheme (TBESS), Revenue has opened the e-Registration facility in Revenue’s Online Service (ROS) via the ‘Mange Tax Registrations’ link. A facility for making claims under the TBESS will be available via the eRepayments system on ROS from 5 December and qualifying claims will be paid once Finance Act 2022 is enacted later in December. Eligible businesses who have successfully completed registration and made valid claims by the third week in December for the months of September, October and November will be paid before the end of the year. The scheme is open to businesses that: are tax compliant carry on a Case I trade or Case II profession (including certain charities and approved sporting bodies in relation to certain activities), and have experienced a significant increase of 50 percent or more in their natural gas and electricity average unit price in the relevant bill period as compared to a corresponding reference period in the previous 12 months. If a business is availing of the Debt Warehousing Scheme or a Phased Payment Arrangement, it will still be eligible for tax clearance provided it meets its obligations under those arrangements.  Potential applicants for the TBESS who may not already hold tax clearance are urged to apply on Revenue’s e-Tax Clearance system on ROS as soon as possible as they will not be able to register for the scheme in the absence of tax clearance. The TBESS will assist qualifying businesses with their electricity and/or natural gas costs from 1 September 2022 to 28 February 2023. To register for the TBESS a business will need to provide details of the trade or profession, and details of the business electricity and/or natural gas account, such as MPRN number and/or GPRN number. A business will also be required, where relevant, to give their percentage of eligible use for the electricity and/or natural gas account which can be attributed directly to the carrying on of the business. Apportionment between business and private use will be familiar to many businesses, particularly where a business is run from home, as this is done when calculating taxable profits for a tax return.   To prepare for the claim stage, a business will need all the electricity and natural gas bills for the reference period of 1 September 2021 to 28 February 2022 and its current energy bills to make a claim. We will keep members updated via Chartered Accountants Tax News.

The OECD published its 2021 report on mutual agreement procedures (MAP) under BEPS Action 14 – Making Dispute Resolution Mechanisms More Effective. Action 14 includes a requirement for all parties to the BEPS framework to implement a mechanism for the timely and complete reporting of MAP statistics pursuant to an agreed reporting framework. The report indicates that the average time for settling transfer pricing cases is 32.3 months and 20.7 months for all other cases. Read the full report for more detailed information.

The gap is closing on gender inequality in Ireland’s boardrooms, but organisations must do more to promote female leadership. Meliosa O’Caoimh explains how Published this month, the Balance for Better Business Review Group’s fifth report brought welcome news, revealing that targets of 30 percent for women on all public listed boards in Ireland had been exceeded for the first time, now standing at 32 percent. Figures for the percentage of women on the Boards of ISEQ 20 companies rose to 36 percent through voluntary action, up five percent on last year. Ireland also now exceeds the EU27 average for the proportion of women on leading company boards for the first time. For other listed companies, the percentage of women on Boards stands at 26 percent, exceeding the 22 percent target set for the end of 2022 and up 16 percentage points since 2018. It’s fantastic that, after just five years of the Balance for Better Business initiative, we are seeing such strides forward in female board representation. Progress is not happening at the same pace in other spheres, however—particularly with regard to C-suite (CEO, CFO and Chair) roles. Here, women are still significantly under-represented in many large companies. It is critical that we continue to address this gap, because—in addition to providing an important pipeline for board talent—it is imperative that we have gender balance at all senior decision-making levels within organisations. To help redress the balance, individual organisations must take their own steps to promote gender equality on Boards and C-suite. Here are some recommendations: Set Diversity and Inclusion (D&I) as a standing agenda item at Board level, using topics like the Gender Pay Gap, Balance for Better Business, ESG and other related issues to promote genuine discussion, and track progress; Integrate diversity into the business agenda at C-suite and Board level, to include action planning and KPIs for outcomes relating to employees, product innovation and development, supply chain integration and customer experience; Set targets for senior roles of influence with a focus on Board and C-suite; Build succession planning for key roles and ensure that, in 3:1 cover plans, there is a gender balance in available talent or a plan to achieve greater gender balance. Such succession planning should be based on individual roles and functions, and not approached as a blanket team approach; Complete a process review of all board appointment systems—including, for example, a board diversity policy, a nomination committee standard, and a commitment to balanced slates for selection consideration; Carry out a process review of all C-suite appointment systems, including mandated balanced slates, open advertising, and reviews of merit standards and role accountabilities; Commit to career path planning across specialist functions, particularly in Finance or P&L portfolios, to ensure gender balance in roles that are the future pipeline for CFO and CEO—from graduate, through to middle management, and on to senior management, as part of a longer-term strategy. Meliosa O’Caoimh is Chair of 30% Club Ireland

The Government has signed into legislation a new tax credit for the digital games sector. Ian Collins and Arek Rojek outline what this will mean for the gaming industry in Ireland On 21 November, the Irish Government, on the back of European Commission approval, officially signed into legislation a tax credit for the digital games sector. This offers a refundable corporation tax credit to digital games development companies for expenditure on the design, production and testing of a digital game. Originally announced in Budget 2022, the new tax credit represents a fantastic opportunity for Ireland to become a powerhouse in the global games development industry. It follows the recent introduction of several university courses geared towards video game development, and clearly sets Ireland’s ambition of becoming a hub for the digital gaming industry in a sector estimated to be worth up to €260 billion. This incentive will be available at a rate of 32 percent of eligible expenditure ranging from €100,000 to €25 million per project. It will also require the game to meet a cultural test based on the contribution its development is expected to make to the promotion and expression of Irish and European culture. These parameters are similar to those already applying to the Irish film tax credit. Video games in Ireland have a vibrant history, and a significant number of indigenous and multinational gaming companies already have operations in the country. When you combine this incentive with the Irish talent in the audio and visual arts, you have a recipe for success. Many other jurisdictions have introduced incentives in this sector, so the launch of the digital games tax credit in Ireland is also very timely. The regulations will now be signed by Revenue, allowing digital games development companies to apply for an interim certificate from the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media for a qualifying digital game. It is expected that certificate holders will then be able to apply for refunds under the scheme from 1 January 2023. The incentive provides a great opportunity for attracting, promoting and growing the digital games industry in Ireland. Only time will tell if the regime will be successful, however—and it should be noted that, while the tax credit is very welcome, some aspects could potentially slow the pace of growth in the digital games sector. Factors such as the proportion of development carried out in Ireland versus overseas, the rules governing the cultural test and the level of documentation required, will all no doubt play a pivotal role in determining how successful this regime will be. Guidance in this area will be very important to ensure the level of certainty needed to incentivise investors to choose Ireland as their place of business, as well as a healthy number of smaller companies looking to progress into the premium AAA games sector in cooperation with well-established game developers and publishers. Ian Collins is Partner/Principal, Business Tax Advisory (BTA) and Arek Rojek is Manager, Business Tax Advisory (BTA) at EY Ireland