14 December 2018
Revenue structural changes - update at Main TALC
In November, Revenue announced changes to their organisational structure. Large Cases Division and the four geographically based “Revenue Regions” have been replaced with five new national divisions. Revenue provided an overview of the new structure at Main TALC. The minutes of the meeting and a Revenue presentation on the new structure are available below. Revenue has been updating the whodoeswhat.gov.ie webpage to reflect changes in management responsibilities arising from the structural changes.
Preparations for PAYE modernisation and important issues for employers to consider as 1 January approaches were also discussed at the meeting.
View Revenue’s slide presentation - http://taxinstitute.ie/Portals/0/Tax%20Policy/TALC/Minutes/Main%20TALC%20-%20291118%20Revenue%20presentation%20on%20strutural%20realignment.pdf
New Employers’ Guide to PAYE released
This week, Revenue released the Employers’ Guide to PAYE with effect from January 2019, which has been updated to reflect the changes arising from PAYE modernisation. New USC Regulations (S.I. No. 510 of 2018) have also been published, which will come into operation on 1 January 2019.
On Tuesday, the Institute issued a bulletin (http://elinkeu.clickdimensions.com/m/1/97135019/p1-b18345-00ba4af50ef7430e9d6173bb2a343e1a/1/22/1fa31c01-e9fe-4470-8800-734feac92bb9?_cldee=bnJvb25leUB0YXhpbnN0aXR1dGUub25taWNyb3NvZnQuY29t&recipientid=lead-3f95996f7565e81181163863bb358f88-31baa16c707c4008b43da263391b0c9b&esid=d3df0bb6-b1ff-e811-a962-000d3a29be4a) with tips and useful links for members finalising their preparations for the new reporting requirements.
Read the new Employers’ Guide - https://www.revenue.ie/en/tax-professionals/ebrief/2018/no-2102018.aspx
View the USC Regulations - https://www.revenue.ie/en/tax-professionals/legislation/statutory-instruments/2018/si-510-18.pdf
Revenue updates Agent's Guide to the Collector-General's Division
Revenue’s Manual Agent's Guide to the Collector-General's Division has been updated to note that applications by unregistered traders for refunds of VAT on farm buildings and on touring coaches should be made electronically (via ROS or myAccount) from 1 January 2019.
Revenue Customs Brexit seminars – additional dates
This month Revenue held seminars in Cork and Dublin to help businesses understand the potential customs implications of Brexit. Revenue is scheduling additional events in the new year, starting with an event in Galway on 15 January.
Revenue updates Manual on Corporation Tax – General Background
Revenue’s Manual Corporation Tax – General Background has been updated to remove references that are no longer relevant i.e:
- The tax on windfall gains (s644AB TCA 1997).
- The treatment of certain dividends received by portfolio investors prior to 2010.
The reference to capital allowances has been amended to note that milk quotas were abolished in April 2016. Measures contained in Finance Bill 2018 are not included in the text as they have not yet been signed into law.
Company Law Package amendments approved by EU Parliament’s Legal Affairs Committee
The European Parliament’s Legal Affairs committee has approved amendments to a Company Law Package along with rules on digital tools, which are designed to facilitate companies to move, merge and divide within the EU. The introduction of the 2005 Cross-Border Merger Directive laid down a harmonised procedure at EU level for limited liability companies which led to an increase in the number of cross-border mergers. However, certain obstacles arose in relation to the lack of harmonisation of substantive rules, in particular for creditor protection and minority shareholder protection. The proposed new rules aim to make procedures more simple, clear and effective by;
- setting up strong safeguards to prevent artificial arrangements aimed at obtaining tax advantages or circumventing legal or contractual rights of employees, creditors or shareholders;
- introducing a system of prior consent by competent national authorities to ensure the legality of cross-border procedures;
- allowing for procedures to be entirely completed digitally, without the need to appear in person; and
- enhancing protection measures for shareholders and creditors in the process.
Proposals for new EU VAT rules for online trading
The European Commission has announced new measures that are intended to pave the way for a smooth transition to new VAT rules for e-commerce that come into force in January 2021. The rules, which establish quarterly information-sharing obligations for payment service providers such as credit card and direct debit providers, are intended to ensure that online marketplaces can play their part in the fight against tax fraud and to ease administrative burdens for businesses selling goods online.
The proposals also include rules for a brand new VAT system for businesses that sell goods online once the agreed new framework comes into force in 2021. The rules introduce new building blocks for the system that will be needed for online companies to take full advantage of the EU's Single Market.The electronic business portal for VAT or 'One-Stop Shop' put in place by these measures will allow companies that sell goods online to their customers to deal with their VAT obligations in the EU through one online portal in their own language. The system is already in place for e-service providers since 2015.
The proposed new rules will now be sent to Member States in the European Council for agreement and to the European Parliament for consultation with a view to agreement being reached in 2019.
Read the press release - http://europa.eu/rapid/press-release_IP-18-6732_en.htm
Read further information on the Commission’s proposals - https://ec.europa.eu/taxation_customs/news/online-payment-companies-help-fight-against-tax-fraud_en
Transparency on tax rulings significantly increased
As part of efforts to improve tax transparency, the Inclusive Framework on BEPS has assessed 92 individual jurisdictions' progress in spontaneously exchanging information on tax rulings, in accordance with Action 5 of the OECD/G20 BEPS package. The OECD’s 2017 Peer Review Reports on the Exchange of Information on Tax Rulings (http://www.oecd.org/tax/beps/harmful-tax-practices-2017-peer-review-reports-on-the-exchange-of-information-on-tax-rulings-9789264309586-en.htm) show that more than 16,000 tax rulings have been identified and almost 21,000 exchanges of information having taken place to date.
The report shows that 60% of recommendations issued in the first annual report in 2017 have already been successfully addressed. The report contains 68 jurisdiction-specific recommendations on issues such as improving the timeliness of the exchange of information and ensuring that exchanges of information are made with respect to preferential tax regimes that apply to income from intellectual property. No recommendations have been made in respect of Ireland.