TaxFax

11 January 2019

IRISH NEWS

Revenue publishes Headline Results for 2018

Last Friday, Revenue published their Headline Results for 2018. The results show that Revenue collected €54.5 billion in taxes and duties in 2018, as well as over €13.5 billion on behalf of other Departments, Agencies and EU Member States. In a press release, Revenue Chairman, Niall Cody acknowledged the continued strong levels of timely, voluntary compliance by taxpayers and the contribution of tax practitioners and agents to the very strong compliance rates.

The results also show:

• 9,088 taxpayers availed of a phased payment arrangement covering €93 million.

• 572,785 compliance interventions were conducted, which yielded €572.6 million.

• Special Investigations (including offshore assets investigations) yielded €9.86 million in 2018.

Read the press release and Headline Results - https://www.revenue.ie/en/corporate/press-office/press-releases/2019/pr-040119-headline-results.aspx

Revenue press release on LPT

Revenue also published LPT figures for 2018, which show a 97% compliance rate. Yesterday, 10 January, was the deadline for paying 2019 LPT in full by debit/credit card, cheque or to set up an Annual Debit Authority (to be debited from bank accounts on 21 March 2019).

Read more - https://www.revenue.ie/en/corporate/press-office/press-releases/2019/pr-070119-lpt-2018-stats.aspx

Revenue updates Manual on PAYE Estimates

Revenue has updated the PAYE Estimates Guidelines (https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-42/42-04-72.pdf), to clarify that estimates may only be made for emoluments paid on or before 31 December 2018. A PAYE Assessment will apply to emoluments paid on or after 1 January 2019. The Guidelines on PAYE Assessments outline the circumstances in which a PAYE Assessment may be raised by Revenue and details of the assessment process.

Read the eBrief - https://www.revenue.ie/en/tax-professionals/ebrief/2019/no-0022019.aspx

Revenue updates Manual on Averaging of Farm Profits

Revenue’s Manual on Averaging of Farm Profits has been updated to reflect Finance Act 2018 amendments. From 1 January 2019, the availability of income averaging is extended to farmers where they, or their spouse/ civil partner, have an off-farm trade or profession.

Read more - https://www.revenue.ie/en/tax-professionals/ebrief/2019/no-0032019.aspx

Transfers to young trained farmers - extension of relief to 31 December 2021

Section 48(1)(a)(vii) of Finance Act 2018 has been commenced with effect from 1 January 2019. This extends the availability of relief under section 81AA Stamp Duties Consolidation Act 1999 (transfers to young trained farmers) to 31 December 2021.

Read the Statutory Instrument - http://www.irishstatutebook.ie/eli/2018/si/599/made/en/pdf

EU NEWS

EU Report on DAC Implementation Published

The European Commission has published its first report on the automatic exchange of tax information to prevent tax evasion. The report highlights the EU’s improved tax transparency record, due to DAC implementation and automatic exchange of information (“AEOI”). The report concludes that:

• Member States mainly use the information for risk assessment and personal income tax assessment.

• AEOI has required significant development investment by Member States, but the main benefits achieved are increased tax compliance and acting as a deterrent for taxpayers.

• Member States send information which does not include all necessary identification elements that would permit an automated matching of this information with the one available nationally. As a way forward, two main areas of improvement are identified, namely, enhanced quality of information and better use of data received via AEOI.

Read the report - https://ec.europa.eu/taxation_customs/sites/taxation/files/report-automatic-exchanges-taxation-dac-844_en.pdf

HMRC launches new Profit Diversion Compliance Facility

HMRC has launched a new voluntary disclosure facility. The Profit Diversion Compliance Facility, which is aimed at multinational companies, is intended to encourage companies to make voluntary disclosures of cross border pricing arrangements, which are based on an incorrect fact pattern and/or are not consistent with the OECD Transfer Pricing Guidelines.

Read more - https://www.gov.uk/government/publications/hmrc-profit-diversion-compliance-facility/profit-diversion-compliance-facility

VAT Committee publishes latest list of Guidelines

The European Commission’s VAT Committee has published its latest list of Guidelines. These include the text of all the Guidelines issued since the VAT Committee was set up in 1977. An index is also available which links the Guidelines with the relevant provisions of the VAT Directive and comments upon them.

The Guidelines are not binding, do not constitute an official interpretation of EU law and do not necessarily have the agreement of the European Commission. However, they may be of assistance in providing some guidance on the application of the Directive.

Read more - https://ec.europa.eu/taxation_customs/business/vat/vat-committee_en

INTERNATIONAL NEWS

Cook Islands joined the Inclusive Framework on BEPS

On 3 January 2019, the OECD announced that the Cook Islands joined the Inclusive Framework on BEPS, bringing the total number of jurisdictions that have joined the Framework to 125.

View the full list of members - http://www.oecd.org/tax/beps/inclusive-framework-on-beps-composition.pdf