June 2014 Newsletter

Member of CCAB-I Taxation Committee South
Mark recently became a member of the CCAB-I Taxation Committee South. The Consultative Committee of Accountancy Bodies – Ireland “CCAB-I” is the representative committee for the main accountancy bodies in Ireland. The Tax Committee South is a CCAB-I committee responsible for advising Chartered Accountants Ireland on taxation issues. The committee interacts primarily with the Revenue Commissioners and the Department of Finance and participates on TALC (Taxation Advisors Liaison Committee).

Consultation on Agri-Taxation
Mark, in his new role as member of the CCAB-I Taxation Committee South, recently met  with officials from the Department of Finance and the Department of Agricultural, to discuss recommendations made under the Agri-Taxation consultation. Incentives to encourage  growth and development of farm businesses and simplified options for taxation of such  businesses were discussed with officials.

Revenue Guidelines on Advance Opinions
The circumstances in which Revenue’s Large Cases Division (LCD) will provide opinions/confirmations in advance of a transaction have been published by Revenue in Tax Briefing Issue 04. Certain procedures are to be followed by taxpayers and agents when requesting an opinion or confirmation from LCD in advance of a transaction/event on or after 9 May 2014.

Electronic Form 12
An electronic version of the 2013 Form 12 tax return is available. This is the first phase of the eForm 12 facility and the most common income types, credits, allowances and reliefs are included. A second phase, which will provide for additional income, credits and reliefs, is expected next month. If you, or your client is already registered for Revenue’s PAYE Anytime service you can access the eForm 12 using the same PIN details. If you are not already registered for PAYE Anytime, you can apply for a Revenue PIN from the Revenue website. Processing time is expected to be 5 working days. The eForm 12 is currently accessible from the Revenue website only. It is expected to be available via PAYE Anytime next month. As a tax agent, you can access the eForm 12 service for your clients via Revenue Online Service “ROS”. However, the ROS option only applies where the client is not already registered for Income Tax.

Local Property Tax Reliefs for Certain Individuals
An eBrief was published by Revenue recently confirming that they will operate on an administrative basis the extension of two Local Property Tax (LPT) reliefs in relation to residential properties that are occupied by certain disabled and/or incapacitated individuals. The extension of the two reliefs is intended to correct anomalies and inequities that had been identified in the operation of the reliefs and, pending the enactment of further legislation. According to eBrief No. 38/14 Revenue will deal with affected cases on an administrative basis in line with guidelines published on its website.

Debt Release – Land Dealers and Developers
Instructions and examples illustrating the operation of legislation for the release of debts in certain trades (section 87B of the Taxes Consolidation Act 1997) has been published by Revenue. The legislation provides that the release of a debt, in certain circumstances, to be treated as a receipt of income and, consequently, chargeable to tax. The instruction, which is included in Part 4 of the Revenue Tax & Duty Manual, also sets out the time at which the debt release is deemed to have taken place, including the circumstances of bankruptcy and personal insolvency.

Capital Gains Tax Exemption for Single Payment Entitlements
Revenue published an update to their Tax & Duty Manual which reflects the announcement from the Minister for Finance that a capital gains tax exemption will apply for the owners of Single Payment Entitlements. The exemption applies where all of those entitlements were leased out in 2013 and where the owners disposed of those entitlements to the lessee before 15 May 2014. This means that individuals to whom the exemption applies will not be required to pay capital gains tax on any qualifying disposals that would ordinarily be payable by 15 December 2014. The legal provisions to give effect to the CGT exemption are expected to be included by the Minister in Finance Bill 2014 later this year.

Companies who have raised BES/EII/SCS Investments
An updated list of companies that have made a declaration to Revenue that they have raised Business Expansion Scheme (BES), Employment and Investment Incentive (EII), Seed Capital Scheme (SCS) investments on or after 1st January 2007 is now available on the Revenue website.

The above mentioned Revenue documents and guidance can be accessed from the Revenue website.
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