Mandatory Electronic Filing and Payment of Tax – Implementation of Phase 3

Revenue issued a consultation document in July 2010, which outlined the proposed extension of mandatory electronic filing and payment for certain tax returns and tax liabilities. In the light of feedback received from a range of stakeholders, Revenue has refined the scope and timing of the next phase - Phase 3 - of this Project. Revenue's response (PDF,121 KB) to the feedback is available on the Revenue website.

Implementation

The obligations under Phase 3 are being introduced in two stages - Stage 1 from 1 June 2011 and Stage 2 from 1 October 2011. Regulations, which Revenue will make shortly, will provide:

• That returns/payments due on or after 1 June 2011 must be made on-line by the following categories of persons/businesses, where they are not already the subject of such a requirement
  • All companies
  • All trusts
  • All partnerships
  • Individuals filing stamp duty returns as respects instruments executed on or after 1 June 2011
  • Individuals or companies filing a return of payments to third parties [Form 46G]
  • Individuals subject to the high earners restriction
  • Individuals benefiting from or acquiring Foreign Life Policies, Offshore Funds or other Offshore products
  • Individuals claiming a range of property based incentives (Residential Property and Industrial Buildings Allowances).
• That returns/payments due on or after 1 October 2011 must be made on-line by the following categories of persons/businesses where they are not already the subject of such a requirement:
• Employers with more than 10 employees

Next steps

Revenue will now commence a process of writing to all those encompassed by phase 3 of the mandatory electronic filing and payment requirement [including the relevant tax agent] advising them of the obligation that will apply from 1 June or 1 October next, as appropriate, and of the steps that need to be taken to facilitate and ensure compliance from the appropriate date.

Capacity Constraints

Revenue may exclude a person from the obligation to pay and file electronically, if they are satisfied that the person does not have the capacity to do so. In this context “capacity” is defined to mean access to the requisite technology, both hardware and software. A person may appeal a decision not to exclude them to the Appeal Commissioners.

Phases 4 and 5

The precise timing and scope of phases 4 and 5 will be the subject of a separate communication by Revenue in the coming months.