Weekly Tax News Bulletin

Please find below tax related topics in the press over the past week that may be of interest to you, your family, your friends or some of your clients.

Obama Targets US Multinationals Foreign Income

Obama faces uphill battle to close multinational tax loopholes in budget

http://www.independent.ie/business/irish/obama-faces-uphill-battle-to-close-multinational-tax-loopholes-in-budget-30958011.html?utm_campaign=daily+tax+news%2c+tues%2c+3+feb+2015&utm_medium=email&utm_source=customerminds.com&utm_content=daily+tax+news%2c+tues%2c+3+feb+2015&utm_term=obama+faces+uphill+battle+to+close+multinational+tax+loopholes+in+budget

Exchequer Returns

Tax revenues €460m ahead of last year

http://www.irishtimes.com/business/economy/tax-revenues-460m-ahead-of-last-year-1.2089803?utm_campaign=daily%20tax%20news%2C%20wed%204%20feb%202015&utm_medium=email&utm_source=customerminds.com&utm_content=daily%20tax%20news%2C%20wed%204%20feb%202015&utm_term=tax%20revenues%20%E2%82%AC460m%20ahead%20of%20last%20year

Revenue Focusing on Defaulting Businesses Across the Country

Revenue moves on almost 5,000 businesses

http://www.independent.ie/irish-news/revenue-moves-on-almost-5000-businesses-30968825.html?utm_campaign=daily+tax+news%2c+fri+6+feb+2015&utm_medium=email&utm_source=customerminds.com&utm_content=daily+tax+news%2c+fri+6+feb+2015&utm_term=revenue+moves+on+almost+5%2c000+businesses

Revenue releases information on new “qualifying avoidance disclosures”

Finance Act 2014 introduced a new facility to make a “qualifying avoidance disclosure”. Taxpayers who entered into a “tax avoidance transaction” on or before 23 October 2014 and make such a disclosure by 30 June 2015 will not be subject to the Section 811A surcharge. Interest will also be capped at 80% of the amount otherwise due.

Mandatory efiling reminder letters

Revenue has completed a “sweepback” exercise on Form 11 filers that have been subject to mandatory efiling/epayment from earlier phases of the mandatory regime. This was carried out in conjunction with the introduction of phase 5 for income tax filers.

A taxpayer may have received a letter from Revenue if either:

  • They were subject to the mandatory regime from an earlier phase and had not already been notified by Revenue, whether or not they have been complying with the regime’s requirements up to now.
  • They are subject to mandatory efiling for the first time under phase 5 i.e. from 2015.

The client lists tax agents are receiving could include clients falling into both these categories.

If a taxpayer is already using ROS to both pay and file their taxes, they do not need to do anything differently. The letter is just a reminder of their obligations. Revenue notes that taxpayers who have not been complying with the mandatory requirement up to now, when they should have been, should comply from now on or Revenue will start to apply penalties.

Taxpayers who do not have the “capacity” to efile/epay may be able to apply for an exclusion from the mandatory requirement.

Revenue eBrief issues on “Rent-a- Room Relief” and “occasional visitors”

Revenue has outlined its position on whether income from the provision of accommodation to occasional visitors for short periods can qualify for “Rent-a-Room Relief”. Revenue’s position is that this income does not qualify for relief as the visitors use the accommodation as guest accommodation rather than for residential purposes. This includes situations where such accommodation is provided through online accommodation booking sites. Revenue’s manual on Rent-a-Room Relief provides more information on this topic.

Vodafone and tax deducted through the payroll

As outlined in TaxFax previously, taxpayers who received a “return of value” payment of €1,000 or less, arising from the receipt of “C Shares” under the Vodafone return of value, will be treated as having received a capital sum rather than an income sum (unless they opt to have the payment treated as income). PAYE taxpayers who arranged to have their tax and USC liabilities collected through the payroll in 2014 should contact Revenue to request a review of their 2014 tax affairs and have any overpayments refunded to them.

If you have any queries in connection with any of the above please do not hesitate to contact me.

Kind Regards,

 

__________________________________

PADRAIG SHANAHAN B.B.S., A.I.T.I.

Chartered Tax Adviser

Tel: 064 6671825

Mobile: + 353 87 4189124

Email: shanahanpadraig@gmail.com

Address: 7 The Oak Courtyard, Bellview Woods, Ballydowney, Killarney, Co. Kerry



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