Chartered Accountants Ireland

tax.point February Issue – Now Available
The February issue of tax.point; Chartered Accountants Ireland’s monthly tax bulletin for tax professionals and accountants is now available. In this month’s issue, Lesley Austin considers what tax measures could UK Budget 2012 bring to kick-start the economy again.  Cormac Kelleher writes on the key initiatives in Ireland’s Finance Bill 2012 to stimulate the domestic economy. The February issu...
Commission Assures UK that FTT will benefit the City of London
Algirdas Šemeta, EU Commissioner for Taxation, told the financial sector in London last week that the FTT will not damage the competitiveness of Europe's financial sector due to the tax’s low rate, wide base and residence principle, and offers the financial sector with an opportunity to regain the trust of the general public. The Commissioner acknowledged that the financial sector will have to...
Ireland is in line with EU Average on Taxes paid on Company Profits
A number of interesting facts have emerged from an in-depth survey published by The World Bank Group and PwC which shows that corporation tax paid in Ireland is close to the EU average due to Ireland’s broad tax base. It confirms the macro economic indicator published by the EU of the ratio of Corporation Tax to GDP which illustrates the same point. The survey also places Ireland in the top ten...
Large Cases Division Relocates to Mount Street
With effect from today, Monday 20 February, the Large Cases Division of the Office of the Revenue Commissioners has relocated to Mount Street.  Members should note that all correspondence for High Wealth Individuals and Professional Business Units should be sent to the new address which is: High Wealth Individuals and Professionals Business Unit Large Cases Division Office of the Revenue...
Retention of Tax Records in Electronic Format
Revenue’s eBrief No. 06/12 sets out the updated requirements for retaining records in electronic format following Revenue’s publication of the Information Technology and Procedural requirements last month. The updated requirements differ from the previous requirements ( Tax Briefing 46 , December 2001) in two respects: It is now no longer a requirement to retain the paper originals of any third...
Reminder Letters Issuing this week from Revenue
Members are advised that reminder letters are issuing from Revenue to taxpayers and their agents where Income Tax returns for 2010 have not been recorded on Revenue’s systems as filed, either electronically or in paper format. The usual warning is offered that failure to file the outstanding return and make payment of the tax due may result in penalties for non-filing, will increase the...
Finance Bill 2012 – Second Stage
The second stage debate on the Finance Bill was opened last Tuesday by Minister Noonan and resumed on Wednesday  .  The Minister in his opening speech remarked that the Bill “should be viewed as one element of a wider strategy to support economic activity” and the measures are “designed to support investment, stimulate research and, ultimately, create jobs”.  The full text of the Minister’s...
Finance Bill 2012 Submission
Chartered Accountants Ireland, as a member of CCAB-I, has made its written submission to Minister Noonan on Finance Bill 2012.  The points in the submission focus on the key measures which require further consideration as the Bill passes through the Oireachtas.  The Institute has also been in discussions with Revenue on the measures in the Bill through the TALC process. The points in the...
PAYE for employers: Basic PAYE Tools
The latest version of HMRC's Basic PAYE Tools to help employers run their payroll systems is now available. Basic PAYE Tools is a computer software package provided by HMRC to help employers run payroll throughout the year. It is a free tool to work out the tax and National Insurance contributions for employees in each pay period and, for employers with up to and including 9 employees at 5 Apri...
Digest of Double Taxation Treaties - January 2012
The above digest has been updated to include revised double taxation arrangements between the UK and the following territories, Hungary and Oman. In addition, a second Protocol to the Double Taxation Agreement between the UK and Singapore was signed last week. This Protocol updates the existing Double Taxation Agreement of 1997 and follows on from the previous Protocol inserting the latest...
Self-Assessment Penalties, Removal and Appeals
HMRC contacted us last week to advise they are now issuing Self-Assessment Penalty Notices of £100 to those taxpayers that did not file online by 2 February.  Included within the penalty notices are also details of a telephone number which taxpayers can use to contact HMRC if they believe they should not be in Self-Assessment. The penalty notices are being sent out over a two week period to...
HMRC launch Electricians campaign
The latest HMRC disclosure opportunity, giving electricians a chance to settle ‘back taxes’, began last week. 50,000 electricians around the country will start receiving letters this month warning them to pay any undisclosed taxes. Covered by Chartered Accountants Tax News HMRC announced this, and a number of other campaigns, last week. Under this particular time-limited tax ‘opportunity’,...
Ireland is in line with EU Average on Taxes paid on Company Profits
A number of interesting facts have emerged from an in-depth survey published by The World Bank Group and PwC which shows that corporation tax paid in Ireland is close to the EU average due to Ireland’s broad tax base.  It confirms the macro economic indicator published by the EU of the ratio of Corporation Tax to GDP which illustrates the same point.  The survey also places Ireland in the top t...
HMRC launch Electricians campaign
The latest HMRC disclosure opportunity, giving electricians a chance to settle ‘back taxes’, began earlier this week. 50,000 electricians around the country will start receiving letters this month warning them to pay any undisclosed taxes. Covered by Chartered Accountants Tax News HMRC announced this, and a number of other campaigns, last week. Under this particular time-limited tax...
Reminder Letters Issuing from Revenue
Members are advised that reminder letters are issuing from Revenue this week to taxpayers and their agents where Income Tax returns for 2010 have not been recorded on Revenue’s systems as filed, either electronically or in paper format.  Members should note that failure to file the outstanding return and make payment of the tax due may result in penalties for non-filing, will increase the...
Finance Bill 2012 Useful Links
Useful links to Finance Bill 2012 and CCAB-I’s pre Finance Bill submission are available here for your convenience. CCAB-I Pre Finance Bill 2012 Submission   Finance Bill 2012 Finance Bill 2012 documents from Revenue    

Tax agents and advisers briefing - single compliance process
The evaluation period for the single compliance process has been extended. HMRC have now issued a briefing paper explaining the decision. Following continued consultation with stakeholders, HMRC has agreed to extend the evaluation period to 31 August 2012 to ensure that both the process and internal implementation package is fully evaluated. If the trial sees favourable results, the single...
P45 set to continue
Plans to introduce a leaver statement instead of a P45 have been withdrawn after consultation about Real Time Information (RTI), HMRC announced last week. Regulations, as originally drafted, introduced a leaver statement for employers in RTI to use in place of the P45 when employees moved jobs. Following the consultation and a workshop with employers and representative groups, HMRC will retain...
Reminder: New powers to tackle ‘PAYE dodgers’
HMRC have issued a reminder about new powers to tackle employers who consistently pay their PAYE or National Insurance contributions (NICs) late and which come into effect this spring. From April 2012, HMRC can require employers to pay a security, where there is serious risk that they won’t pay over their PAYE tax deductions or NICs. The new power will be targeted at employers who deduct money...
Corporation Tax on chargeable gains - Indexation Allowance
Tables showing the Indexation Allowance for assets disposed of in December 2011 have now been published together with historical data.  

Disclosure of Tax Avoidance Schemes (DOTAS)
An updated version of the DOTAS guidance has now been published. The guidance has been rewritten to incorporate supplementary guidance published between November 2010 and April 2011 and to clarify areas where previous advice may have been unclear. The main changes are as follows: - Paragraphs 12.7 and 19.3 amend HMRC’s definition of reasonable excuse to provide greater clarity following a numbe...
HMRC announce new campaigns for 2012
Last week HMRC announced they will launch a new campaign during the next year aimed at people who fail to make tax returns and who are liable to pay tax at the highest tax rates. Two further campaigns were also announced which will be launched later in the year. These will target tradespeople working in the home improvement market, and people who receive income from buying and selling goods...
Confirmation of Measures Announced in the Budget
Key measures flagged under Budget 2012 have been given effect by Finance Bill 2012 which are analysed in the following. INCOME TAX Mortgage interest relief Mortgage interest relief increases to 30% for first time buyers who took out their first mortgage in the period 2004 to 2008. Mortgage interest relief will also be available at 25% for first time buyers who purchase in 2012 and at 15% for...
New Measures Announced in the Bill
As has been the case in recent Finance Bills, there was a number new measures included in this year’s Bill.  Some of the key new measures are set out below.  Income Tax Tax relief on third level fees The relief available for fees paid for third level education has been restricted by section 11 of the Bill which provides that the first €2,250, (was €2,000), in fees per claim will be ineligible f...
Chartered Tax Consultant – Exam results just announced!
Chartered Accountants Ireland would like to congratulate the first group of Chartered Tax Consultants who have just received their final exam results, having successfully completed the qualification.  With an enviable overall pass rate (made up of results from both assignments and the examination) of 79%, this makes this programme the qualification of choice for those wanting real Irish...
Five EU Member States Agree Information Exchange Arrangement with the US
A government-to-government approach to tackling tax evaders and implementing the US Foreign Account Tax Compliance Act (FATCA) has been agreed with the US authorities. According to EUROPOLITICS, five EU member states (France, Germany, the United Kingdom, Italy and Spain) worked out an arrangement with the US on its new reporting and withholding regime which is due to take effect in 2013 . ...
HMRC Announce New Campaigns for 2012
Earlier this week HMRC announced they will launch a new campaign during the next year aimed at people who fail to make tax returns and who are liable to pay tax at the highest tax rates. Two further campaigns were also announced which will be launched later in the year. These will target tradespeople working in the home improvement market, and people who receive income from buying and selling...
More Innovative Approaches Needed to Deliver on Positive Promises of Budget Day
The Finance Bill fails to follow through on the useful incentives promised on Budget Day and is more about maintaining the status quo than proactively using the tax system, which is the only domestic mechanism we have to deliver economic stimulus and job growth.  The positive ideas advanced for encouraging more Foreign Direct Investment into the country have been stifled by a blanket of...
India Signs International Tax Agreement
India has signed the Convention on Mutual Administrative Assistance in Tax Matters, a multilateral agreement which promotes international co-operation. India becomes the 32nd country to sign up to the Convention which provides for the exchange of information between member states including automatic exchanges, to the recovery of foreign tax claims. Signatories to the amended Convention are:...
Draft Legislation published
Draft Legislation in relation to Controlled foreign companies, VAT online and Seed enterprise investment scheme has now been published. More information is available here .

Taxation of Interest on Payment Protection Insurance (PPI) compensation payments
Often the tax treatment of interest on PPI refunds is overlooked. Therefore HMRC have now published a note which gives basic advice on the taxation of interest paid on PPI compensation payments. The note does not however include advice on the reporting requirements of companies to HMRC for the interest paid and tax deducted or how the tax deducted should be paid over to HMRC. Generally no tax i...
Company Tax update
HMRC have redesigned the CT600 guide to add direct links to the online guidance companies need to complete their Company Tax Return form and any appropriate supplementary pages. CT600J 'Disclosure of tax avoidance schemes' supplementary page has also now been published.

Publishing Details of Deliberate Defaulters (PDDD)
Following feedback from external stakeholders and internally, HMRC have adopted some changes in their practice and procedures regarding publishing details of deliberate defaulters. This has been reflected in the updated version of the e-learning which HMRC staff must complete before dealing with potential PDDD cases.  As readers will no doubt be aware, from April 2010, in addition to recovering...
Official Rate of Interest
The official rate that has applied since 6 April 2010 is 4.00%. HMRC have confirmed that this rate is unchanged for the 2012-13 tax year, subject to review in the event of significant rate changes.

HMRC announce fresh approach to Business Records Checks (BRC)
Following the issue of a report reviewing BRC , HMRC have announced a fresh approach to the above programme in 2012. BRC are aimed at being short, face-to-face, real time interventions to encourage greater voluntary compliance in record keeping among small and medium business enterprises. HMRC estimate that 40% of SME taxpayers are not keeping adequate records and that this can lead to inaccura...
Review of HMRC's Powers, Deterrents and Safeguards
The above Review has now published an updated summary of the legislation that has been enacted and the date it comes into effect. This a useful summary of all aspects already enacted as part of the Review and details the wide range of powers and penalties now at HMRC’s disposal.

HMRC information sessions - what do you want to learn?
Now that the 31 January deadline is over and remains fresh in the mind we are asking our members what would make your life easier as a practitioner and what do you need to know about HMRC? We are currently working directly with HMRC to develop some information sessions to be held in Northern Ireland over the next few months. This is your opportunity to shape your direct relationship with HMRC a...
Government responds to NI Affairs Committee inquiry report into Corporation Tax
Last week the Government issued its response to the May 2011 report of the Northern Ireland Affairs Committee’s inquiry into corporation tax in this region. Chair of the Institute’s Northern Ireland Tax Committee, Mr Eamonn Donaghy, was previously called to give evidence to the Committee in October 2010. There are no great surprises in the Governments responses to the points raised by the...
NEW Tax Checklists for 2011 – ‘Tax Gather & Check’
Efficiency pays … and a good start is half the work! Get equipped early for 2011 tax returns with this new toolkit, designed to help you streamline your procedures and assist you in asking the right questions to capture essential details for 2011 Personal Tax and Corporation Tax returns in the Republic of Ireland. And all for just €70! Find out more here .

Form CT1 for 2011 Now Available
The corporation tax return form (Form CT1) for accounting periods ending in 2011 has been published by Revenue and is available here .

Switzerland and Ireland Sign Revised Double Taxation Agreement
Switzerland and Ireland signed a protocol to amend the double taxation agreement (DTA) in the area of taxes on income and capital.  It also inserts a new Article 26 into the DTA which contains provisions on the exchange of information in accordance with the international standard applicable at present. Aside from an OECD administrative assistance clause, Switzerland and Ireland have agreed that...
ROS Procedures for Employee Cessations and Commencement
Revenue have issued a Notice reminding all employers of the procedures to be followed when ceasing employees and commencing new employees.  The notice deals with the requirement for employers to issue P45’s to Revenue and employees where an employment ceases and to record P45s received on ROS to commence a new employment.  Employers are also reminded that use of form P46 is restricted to cases...
The Universal Social Charge (USC) and Social Welfare Payments
Revenue have issued eBrief No. 05/12 which clarifies that certain payments made by the Department of Social Protection, other Government Departments and agencies such as FĀS and the Department of Education and Skills are not liable to the USC.  The eBrief confirms those making such payments should not deduct USC or record these payments for USC purposes on forms P45, P60 and P35. Where Income T...
Appointment of Revenue Commissioner
Mr. Niall Cody has been appointed as Revenue Commissioner by the Taoiseach Mr. Enda Kenny. Mr. Cody succeeds Mr. Michael O'Grady, who recently retired.  Mr. Cody has been an Assistant Secretary in Revenue since 2007 with responsibility for Indirect Taxes Division, the Dublin Region and most recently Planning Division.  He has also been very involved with the Tax Administration Liaison Committee...
2011 carryover evident in January receipts for 2012
Total tax receipts for the first month of 2012 amounted to €3.66 million, 17% or a €534 million increase on the same month in 2011.  This represents just over 10% of the total projected expected tax revenues for 2012. According to the analysis of tax receipts, corporation tax receipts for January 2012 are 276.3% up on the same month in 2011. However, approx. €250 million of the €271 million...
CHARIOT updated February 2012
CHARIOT (Chartered Accountants Reference and Information Tool) has now been updated online. CHARIOT online is a free Institute Members (including Students) only service. You will need your Member ID and password to access CHARIOT.  If you have forgotten your password, you can submit a reset password request online .  Below are details of the latest content added/amended/deleted since the last...
HMRC information sessions - what do you want to learn?
Now that the 31 January deadline is over and remains fresh in the mind we are asking our members what would make your life easier as a practitioner and what do you need to know about HMRC? We are currently working directly with HMRC to develop some information sessions to be held in Northern Ireland over the next few months. This is your opportunity to shape your direct relationship with HMRC a...
Government responds to NI Affairs Committee inquiry report into Corporation Tax
Earlier this week the Government issued its response to the May 2011 report of the Northern Ireland Affairs Committee’s inquiry into corporation tax in this region. Chair of the Institute’s Northern Ireland Tax Committee, Mr Eamonn Donaghy, was previously called to give evidence to the Committee in October 2010. There are no great surprises in the Governments responses to the points raised by t...
Appointment of Revenue Commissioner
Mr. Niall Cody has been appointed as Revenue Commissioner by the Taoiseach Mr. Enda Kenny. Mr. Cody succeeds Mr. Michael O'Grady, who recently retired.  Mr. Cody has been an Assistant Secretary in Revenue since 2007 with responsibility for Indirect Taxes Division, the Dublin Region and most recently Planning Division.  He has also been very involved with the Tax Administration Liaison Committee...
Cheartered Accountants Healthy Heart Day 2012 - How do I Get Involved?
In response to some queries from members, we've outlined below a simple, step-by-step guide to how you can get involved in the Institute's Charity Day on the weekend of 20th April. If you have any queries at all with Charity Day , please email us here. Register here and make the payment of £20/€20 for members; £10/€10 for students & non-members. Once you register you will receive an automated...