November tax news : pay & file deadline

Pay & File Deadline & Revenue Audits
Revenue has confirmed that they will endeavor not to schedule comprehensive audits or final meetings over the next few days as we lead up to the ROS filing deadline of 13th November.  According to Chartered Accountants Ireland, Revenue have stated that, “it is recognised that Tax Practitioners, especially those in small/medium practices, are predominantly occupied with the Income Tax return filing deadline during the month of October and the first half of November each year”.
Revenue’s Pay & File Tips
Revenue have published an eBrief setting out some reminders for the current Pay & File income tax season.   Some of the tips outlined are;

  • Taxpayers and agents registering for Revenue Online Service (ROS) are advised to allow at least 10 working days to complete the registration process.
  • Tax agents are also advised that they must be linked to their clients before submitting the income tax return; and it may take up to 2-3 working days for the agent/client link to be recorded on the eRegistration system.
  • There is an option to complete a pre-populated 2013 Form 11 return for both ROS on-line and offline.
  • 2013 PAYE pay and tax deducted details and Department of Social Protection (DSP) payments are provided when a pre-populated Form 11 is selected.
  • If a Form 11 return generates a refund and the taxpayer wishes to offset this refund against their Preliminary Tax or Capital Gains Tax obligations, a Statement of Net Liabilities must be completed.
  • A transaction charge of 1.1% of the value of the payment applies to credit card payments via ROS.

Income Tax Self-Assessment
Revenue’s guidance on the new full self-assessment which applies for 2013 Income Tax Return may also be of use when filing returns over the coming days.  You are reminded that the new self-assessment panel in ROS requires you or the client to make a self-assessment by either choosing to accept Revenue’s calculation or disregard it and enter your own figures.
Amending Tax Returns
Guidance on the procedures for amending a tax return which has already been filed was published by Revenue.   The guidance also covers claims for repayment of tax arising out of an error or mistake in a tax return and the time limits for self-correction without penalty.
High Income Earners Restriction
Guidance on the application of the High Income Earners restriction, with worked examples, is available in Revenue’s Operational Manual.  This guidance, and a technical note on the Revenue website on the application and calculation of the restriction, may be of assistance as you prepare 2013 income tax returns.  The Revenue’s analysis of the High Income Individuals’ Restriction in 2012 may be of interest to you.  The analysis, which is published on the Department of Finance website, shows that 1,040 individuals were subject to the restriction in 2012 yielding €63.2 million in additional income tax.
iXBRL Financial Statements
Phase 2 of mandatory iXBRL filing commenced last month for taxpayers filing corporation tax returns on or after 1 October 2014 in respect of accounting periods ending on or after 31 December 2013.  Corporate taxpayers who satisfy three specific criteria are excluded from phase 2 of mandatory iXBRL filing.  The criteria are:

  • Balance Sheet total does not exceed €4.4 m, and
  • Company turnover does not exceed €8.8 m per annum, and
  • The average number of employees does not exceed 50.

Each of the three criteria must be met otherwise the company is required to file the financial statements in iXBRL format in Phase 2.
Revenue has published eBrief No. 85/14 which deals with the iXBRL filing requirements of Holding Companies and also phase 2 of mandatory iXBRL filings.
Finance Bill 2014
Finance Bill 2014, published on Thursday 23rd October, sets out the fine print of Budget 2015, also contains details of tax measures not announced by the Minister during his Budget speech on 14th October.  The Bill is expected to pass through the Dáil this month and be enacted as Finance Act 2014 early December.  Mark features an article on Finance Bill 2014 in the CPA Ireland journal this month.  This article will also be published on our website in due course.  If you would like a copy of this article please contact us.  In the meantime you can download the Finance Bill from the Oireachtas website.