February 2014 Newsletter
ROS Direct Debit Payments & SEPA Arrangements
As a result of the new SEPA arrangements, ROS direct debit payments to Revenue are taking up to 7 working days to clear. Therefore this means that while a ROS direct debit payment may have been made on or before the relevant due date and payment confirmation has been received from Revenue, the payment is not taken from the relevant bank account until a week later. For example VAT payments made for the November/December VAT period on or before 23 January may not be debited from the nominated bank account until this week. Under the SEPA arrangements, subsequent ROS direct debit payments are expected to take up to 4 working days to clear.
Annual P35 Return Deadline
The P35 deadline is fast approaching; the final date for returning the annual P35 return for the year ended 31 December 2013 is 15 February 2014. The P35 return deadline is extended to 23 February where the P35 return and associated payment is made through ROS. Employers subject to mandatory eFiling are obliged to pay and file their P35 return on ROS.
Tax Treatment of Return of Value to Vodafone Shareholders
Revenue have published a guide on the potential tax position on the proposed realisation by Vodafone shareholders (who acquired their shares in exchange for Eircom shares in 2001) of a Return of Value in accordance with the Vodafone Document dated 10 December 2013. The guide covers the capital gains tax and the income tax position and includes examples illustrating the tax treatment.
Certain Green Fees now Exempt from VAT
In Brief No. 09/14 Revenue sets out their position on the VAT treatment of certain green fees following the recent judgment in the Bridport & West Dorset Golf Club Limited case (C-495/12). In this case the European Court of Justice held that green fees charged by members’ clubs are VAT exempt. Green fees charged by non-profit making organisations, such as member owned clubs, to visitors have to date been liable to VAT at the second reduced rate of 9%. Revenue have advised in the eBrief that the clubs concerned may treat non-member green fees, including the green fee element of competition fees, as exempt from VAT with effect from 1 January 2014. There will be no entitlement to a credit for VAT incurred on inputs in relation to such fees and therefore input credits will have to be adjusted accordingly.
Compliance Code for PAYE Taxpayers
Revenue have published a Compliance Code for PAYE Taxpayers which describes Revenue’s PAYE compliance programme and the nature and scope of PAYE compliance interventions. All PAYE compliance interventions undertaken by Revenue since November last year will be made under the terms of this Code.
Guidelines for Artist Exemption & Charitable Donations
New guidelines on the Artist Exemption Scheme were published by Revenue last month. The guidelines have been prepared for the purposes of determining whether a work within a category specified in that section is an original and creative work and whether it has, or is generally recognised as having cultural or artistic merit. Revenue have also published eBrief No. 55/13 which sets out the arrangements for tax relief for donations to eligible charities and other approved bodies. The arrangements, which apply to donations made by individuals on or after 1 January 2013, provide that tax relief is given to the charity on a grossed up basis at the specified rate, currently 31%. eBrief No. 55/13 sets out further details, and how tax relief can be claimed.
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