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Starting a Business

Mon, 28 Sep 2015 16:30:00 +0000

If you are starting a business the team at Merry Mullen are experts in assiting you with the minefield and pitfalls which affect all startups.

Revnue have issued a new guide to identify, from their persepctive, what a entrepreneur needs to know. This guide is reproduced here

If you would like more information on this please contact us directly on enquiries@merrymullen.ie and one of our team will be happy to help

Making decisions in family businesses

Mon, 14 Sep 2015 16:30:00 +0000

See Irish Times article from Friday 11th September 2015 by Rob Lachenauer

Imagining a family business as four rooms helps set decision-making boundaries

The decisions facing business families can be gut-wrenching – and the implications of these decisions can be huge both for the future of the family and also of the business: “Who should the next chief executive be – my daughter or my son?” “Should we buy our cousin out of the business?” “Can nonfamily directors be trusted to make key decisions for our business?”

To help our clients, we use a simple analogy for how and where strong family businesses make decisions. Just as we separate the bedroom from the kitchen in our homes, successful family businesses build out and furnish four rooms: the owner room, the boardroom, the management room and the family room.

Discrete decisions are made in each room: management directs operations; the board monitors the performance of the business and hires/fires the chief executive; owners set the high-level ownership goals for the business and elect the board; and families build unity and develop family talent – to name a few of the most basic decisions made in each room.

The source of decision-making power also varies across the rooms. In the owner room, power is based on who controls the shares, either directly or through trusts. In the boardroom, directors influence one another in a peer-to-peer setting. Chief executives run organisations that are hierarchical and generally make decisions based on financial returns. Families usually operate by consensus and make decisions based on their impact on legacy and stewardship.

The four-room model helps set decision boundaries.

A nonfamily chief executive, for example, stays in the management room and doesn’t tell the scion of the business family where to go to college. Similarly, executives make many daily decisions on how to implement the business strategy but do not decide the dividend policy. That’s up to the owners.

Family members can’t just walk into any room; there has to be a process for channelling family wants and needs to the appropriate rooms.

The four rooms are not randomly configured; there’s a clear hierarchy. Management answers to a board that ultimately answers to the owner group. The family room is not perched atop of the other rooms, as the other rooms don’t report to the family. Rather, the family room runs adjacent to them to symbolise family unity, which is so important for maintaining decisiveness across the full family enterprise and for developing the talent of family members who, if qualified, can move into other rooms.

The family room is also important in that it provides a forum for addressing family conflicts and stresses that can spill into the other rooms.

The four-room analogy is a simple but dynamic way of rethinking decision-making in family businesses that can be transformative. As a chief executive client summed up the transition to the four rooms: “I’ve become 50 per cent more efficient. When my second brother, who no longer works in the business, comes into my office now and complains about some executive decision that I’ve made, I say, ‘Jack, are you talking to me as an owner? This issue is not in your bailiwick. This is the management room.’

“Now I have one conversation at a time – and sometimes more conversations than I ever thought were necessary – and I am making a lot more progress.” This is the eureka moment that is the reoccurring theme in our work."

If you would like more information on this please contact us directly on enquiries@merrymullen.ie and one of our team will be happy to help

Revenue increased focus on the construction sector

Tue, 25 Aug 2015 16:30:00 +0000

Revenue is increasing their compliance interventions in relation to Relevant Contracts Tax (RCT) and the construction sector in general. Revenue has informed us that there will be increased interventions in the sector and to expect additional aspect queries, profile interviews and audits. An increase in the number of unannounced visits to construction sites can also be expected.

According to the correspondence from Revenue, the focus will be on compliance risks including the following:

Proper operation of the electronic RCT system (eRCT) generally, to include:
- Ensuring that principal contractors are fully reporting payments through the eRCT system
- Principal contractors reporting “Unknown” sub-contractors

Reconciling reported activity under the Home Renovation Incentive (HRI) with VAT returns filed
Reconciling reported activity under the eRCT system, PAYE/PRSI returns, VAT returns and examining profit margins
Proper operation of the VAT Reverse Charge
Proper operation of PAYE/PRSI obligations
Ensuring employees are not misclassified as subcontractors
Ensuring obligations of non-resident principals/sub-contractors are being fully met

The advice from Revenue is for taxpayers in this area to self-review and regularise their affairs before any Revenue compliance intervention begins.

An eBrief is expected to issue from Revenue and we are monitoring this development closely.

If you would like more information on this please contact us directly on enquiries@merrymullen.ie and one of our tax team will be happy to help

Travel and Subsistence Expenses - Normal Place of Work

Mon, 24 Aug 2015 16:30:00 +0000

The Department of Fiannce and Revenue is engaged with the various Institutes and others to complete a consulatation which will hopefully lead to a review of the taxation of Travel and Susistence expenses and more definitive and workable system.

See Irish Times article from 22 August 2015 by Brian Keegan (Director of Taxation with Chartered Accountants Ireland)

Tax experts have called on the Government to bring the concept of the “normal place of work” into the 21st century, by updating rules on how people can claim tax relief on work expenses. A recommendation to allow non-executive directors claim tax relief on expenses, is also included in submissions to the Department of Finances's consulatation on the “tax treatment of expenses of travel and subsistence for employees”, which closed yesterday.

Some 9 or 10 submissions had been received by the deadline, and these will now be looked at by the Technical Support Group with a view to advising Government ahead of the forthcoming Budget.

Daryl Hanberry, global employer services tax partner at Deloitte, says the consultation has been about gathering various views as to how the normal place of work should be determined, based on international tax practice and practical experience.

Some years ago, self-employed contractors around the country found themselves the subject of a Revenue investigation, the National Contractors Project, when it came to claiming expenses on travel to and from work, and the sense is that clarity is now needed on what constitutes a “normal place of work”.

Earlier this year the Irish Tax Institute surveyed hundreds of tax advisers around the country to inform its submission. Their response was that the current regime is not “fit for purpose”, given that it is nearly 50 years old, and tax advisers said there is a need for one which “addresses modern working patterns”.

In particular, advisers said it is almost impossible to meet the test’s requirements in situations such as where you work form home and travel on business to clients, or where you work from a number of offices of your employer, or you arehighly mobile.

“Fundamentally, there is a mismatch between the archaic nature of the current regime and how people work and travel on business in the private sector,” the Institute found.

What Hanberry would like to see, is a situation whereby the place where an employee performs most of their duties, would be considered as their normal place of work, and that the Revenue would take a “sensible and fair” approach when interpreting this.

Director expenses

Respondents to the Government’s consultation have also suggested that travel expenses incurred by non-executive directors, when travelling to board meetings, should be reimbursed tax free, although Deloitte adds that a “level of control” could also apply. At present, these are generally subject to tax.

Brian Keegan, director of taxation with Chartered Accountants Ireland, says the issue is an anomaly, as non-executive directors of non-commercial bodies are already entitled to claim tax relief on their expenses.

“There is a clear distinction in legislation and we can’t see justification for it,” he said.

Indeed in a recent briefing, the Tax Institute asserted that the issue “ is causing uncertainty and reputational damage for some of our largest employers in the country”.

For Hanberry, it’s also a competitiveness issue.

“The issue is our tax regime for individuals is already quite high, so anything additional that places a burden on people taking up a role in Ireland, would be seen as a negative,” he says.

If you would like more information on this please contact us directly on enquiries@merrymullen.ie and one of our accountancy team will be happy to help

Tax Free Travel and Subsistence Expenses

Thu, 06 Aug 2015 16:30:00 +0000

With Revenue issuing revised guidance in recent years the issue of Travel and Susistence expenses has become very restrictive, overly so. The various Institutes through TALC hav emade representations and there is presently a consultancy process underway and this area is not as one would imagine

See Sunday Business Post article from 2 August 2015 by Brian Keegan (Director of Taxation with Chartered Accountants Ireland)

Tax free

There are few descriptions in the business world which offer such consolation. Retirement isn’t so bad if the lump sum you receive is tax free. The flight delay becomes bearable if you can while away the time in the tax free shop. Staff get over the nuisance of having to use their car for work purposes. After all, isn’t the mileage tax free?

The Revenue Commissioners are not in the business of offering consolation. When it comes to expenses, “tax free” is just a shorthand description for amounts which Revenue permit employers to pay without operating PAYE. Strictly speaking, if you are paid expenses in your job, the employer should operate PAYE on them, and then you should claim back the tax which was deducted. In practice that doesn’t happen, mainly because Revenue would be swamped with refund claims. Instead, and in very strict circumstances, Revenue permit employers to refund expenses directly to the employee tax free.

Tax free expenses

The expense tax rules date back decades, and are very tough. To qualify for a tax-free treatment, you have to be able to prove that the payments in total are for no other purpose than for the employment, and are necessary for it. In particular, you're not usually allowed claim for the cost of travel from your home to and from your work.

These rules date from an era when business travel was infrequent, and international business travel was very much the exception rather than the norm. The rules were last modernised about 20 years ago, but that reform was limited to taking out references to travel expenses arising from keeping a horse.

Around Budget time last year, the Minister said he would review the expenses tax rules again, and a public consultation on the matter was launched a few days ago. Why now? I think the timing has to do with the issue of expenses paid to some company directors.

Non-executive directors

Many companies engage non-executive directors, individuals with a particular knowledge of the company's business area, or of good corporate governance. Sometimes they are appointed for prestige reasons. Having a high-profile name on a company board can be good for corporate image and sales. Frequently they will have been appointed by the company owners, particularly if the company concerned is a subsidiary of a group headquartered overseas.

By definition, these directors do not work in the company – they are non-executive. Under tax law they are deemed to be employees and for PAYE purposes are treated in the same way as anyone on the shopfloor. So their travel costs to and from board meetings may not be paid without operating PAYE.

These travel costs aren’t usually an issue, but if you're travelling a distance and have to stay over, or flying in from abroad, the travel costs and therefore the tax consequences become significant. That’s a bit inconsistent for a country like Ireland which works so hard to get Foreign Direct Investment, but then charges income tax on the foreign travel costs of the investors.

It’s also inconsistent because as things stand, not all non-executive directors are treated the same way. If you're involved as a director in the voluntary or not-for-profit sector, and the expenses are fairly minor, Revenue do not apply the charge to tax. The travel expenses of many directors of state boards are also tax free.

Awkward questions

This anomaly provides some justification for a review of the tax free system of expenses, but no Department of Finance review would be complete without some very awkward questions. Top of the awkward list is the status of the subsistence allowance. A subsistence allowance is an unvouched amount paid to an employee to reimburse an overnight stay or an extended absence from the normal place of work. Employees can spend or save their subsistence allowance as they choose. Subsistence allowances are common enough in the public sector, but less well known in the private sector. Their acceptability for tax purposes may be abolished as a consequence of this review.

Government is rightly wary of the consequences of broadening the tax free expenses regime, because government depends on income tax and income tax collection depends largely on employers operating PAYE correctly. Anything which could seriously dilute the PAYE take will be avoided at all costs. As against that, employees incur expenses in their work and deserve straight refunds of the money they legitimately have to spend doing their job.

Control

The difficulty with non-executive directors which prompted this review is one instance of the anomalies arising from having a mobile workforce in organisations with interests across the world. Work is no longer defined in terms of somewhere you go, it is something you do. The tax system should reflect this. If people can work from home, is a blanket ban on all expenses of travel from home (where they were working) to a customer site (where they continue on working) still appropriate? The answer is probably not. But then the problem becomes one of the extent to which expenses can be paid tax free, not a simple yes or no as is often the case with the current system.

The answer to this problem may lie in the degree of control which an employer exercises over the payment of tax free expenses. The test that the payment is wholly, exclusively and necessarily made in fulfilling the work to have a tax free status may need to be adjusted. This test favours concerns over the out of pocket costs to the employee rather than the commercial concerns of the employer.

A brand new set of rules can’t and won’t be formulated, if only because of fears surrounding the exchequer impact. However changes which facilitate commercial concerns should be prioritised and made. Such changes will not necessarily result in a loss of tax revenue.

In fact some employers might be quite happy with the abolition of tax free status for unvouched, fixed or round sum amounts and prefer to reimburse on vouched receipts. Few would quibble with any attempt to clarify some of the current anomalies and ambiguities surrounding the payment of expenses and their tax status.

Government must however avoid the temptation to increase the tax take by the back door. That wouldn’t be a consolation for anyone."

If you would like more information on this please contact us directly on enquiries@merrymullen.ie and one of our accountancy team will be happy to help

New Companies Act 2014

Mon, 01 Jun 2015 16:30:00 +0000

After nearly a decade in the making, the Companies Act 2014 came into effect on 1 June 2015. The comprehensive Act is the largest reform of company law the State has seen in half a century (comprising a total of 25 Parts (over 1440 sections) and 17 Schedules) and is intended to make running a business in Ireland easier….

The Act includes a number of radical reforms

The Act provides for the creation of two types of private limited company:
- a company limited by shares - these companies are expected to be the most widely utilised corporate vehicles; and
- a designated activity company - these most closely resemble current private limited companies
During an 18 month transition period starting from the commencement of the Act, all existing private limited companies will have to decide to whether to convert into a company limited by shares or a designated activity company.
Private limited companies will be entitled to have a single director but all companies must retain the office of the company secretary.
Private limited companies will have a single document constitution to replace the existing memorandum and articles of association and will be deemed to have full and unlimited capacity in the same manner as human persons. All other companies, including designated activity companies, will have to retain a two document constitution similar to their existing two document memorandum and articles of association.
Provisions relating to shareholder meetings have been greatly simplified with the requirement to hold an annual general meeting being optional and the delivery of notice of general meeting by electronic means being permitted.
The existing common law duties of directors are codified into eight principle duties which will apply to all directors including shadow directors and de facto directors.
The Act reintroduces the requirement that directors provide directors compliance statements. This obligation applies to all plcs and certain large private limited companies.
The Act introduces a single summary approval procedure that may be followed in order to permit companies to partake in certain transactions which might otherwise be restricted or prohibited.
Certain holding companies will be exempted from the obligation to prepare group financial statements where they and their subsidiaries do not exceed certain thresholds. The audit exemption has been extended to holding companies and their subsidiaries where together they are treated as small companies and in respect of dormant companies.
For the first time the Act introduces mechanisms whereby mergers and divisions of Irish companies may take place.
For the first time the Act categorises and classifies the various offences for breach of the provisions of the Act.
For the first time the Act introduces omnibus statutory validation procedure known as the Summary Approval Procedure - a simplified written approval process which may be undertaken for activities that might prejudice shareholders or creditors (financial assistance for acquisition of own shares, reduction of company capital, variation of capital on reorganisations, treatment of pre-acquisition profits as distributable, transactions with directors and connected persons, mergers and members’ voluntary windings up).
The audit exemption is extended and is now available in certain group situations (but not for a PLC, PUC, PULC or a company with securities listed on a regulated market). The audit exemption is also extended to dormant companies (ie, companies with no significant accounting transactions during the year and which have only intra-group assets and liabilities). An LTD and a DAC may avail of the audit exemption where two of the three prescribed conditions are met (whereas, under old law, all three conditions needed to be satisfied).

If you would like more information on this please contact us directly and one of our accountancy team will be happy to help

Tax Assistant Vacancy

Tue, 06 Jan 2015 09:15:00 +0000

We are currently seeking to hire an experienced Tax Assistant/Senior for an immediate start to fill a permanent vacancy.

The Role

The successful candidate will manage a portfolio of clients income tax and corporation tax compliance requirements

We are keen to hear from candidates who possess the following:

Ideally candidates would possess previous experiences in a similar role

Good general tax knowledge
Keen interest in developing their knowledge and skill base
Excellent understanding of Revenue systems, ROS, Microsoft Word and Excel
Prioritising work by exhibiting good organisational skills and effective time management
Enthusiasm and adaptability and strong interpersonal skills
Ability to work independently and unsupervised on day-to-day duties and tasks
Excellent communication skills and a good telephone manner
Ability to work in a busy environment as part of a team

Key responsibilities include

Assisting with the preparation of income tax and corporation tax returns for a portfolio of clients (high net worth individuals, sole traders, company directors)
Working in a compliance team reporting directly to Managers and Partners
Correspond with and liaise directly with clients
Where necessary, liaising with Revenue on behalf of clients
Provide other ad hoc tax related duties
Providing support and assistances with all administrative tasks related to the tax department

You will gain significant experience in income and corporate taxes across all industries and a broad level of experience across all other tax heads including employment taxes and VAT, as well as experience in managing your own client portfolio from client acceptance to providing services and billing.

Reward

We offer a competitive salary for this contract position depending on experience and qualifications.

If you are interested in the above role, please visit our careers section (www.merrymullen.ie/careers) and submit a CV to declan@merrymullen.ie or contact Declan Merry direct on 01 6458100

Inheritance Tax - Maintenance and Support

Mon, 05 Jan 2015 17:30:00 +0000

New Revenue guide on CAT and payments for support, maintenance or education

Revenue has published a guide on the changes to Section 82 CATCA 2003 (payments for support, maintenance or education of a child by a parent or a person acting in loco parentis). Following the Finance Act changes the CAT exemption is only available if a child is a minor, or no more than 25 and in full-time education, or permanently incapacitated. Revenue provides examples of the types of benefits it considers are and are not exempt from CAT under Section 82.

Examples of non-exempt benefits include: purchase of a house for a child, gift of a house deposit, free use of a house (unless under 25 and in university), monetary gifts.

Examples of exempt benefits include: "bed and board" in the family home, cost of a family function such as a wedding, college costs e.g. tuition fees, transport costs, pocket money.

Read the guide here. http://www.revenue.ie/en/practitioner/ebrief/2014/no-1092014.html

If you would like more information on this please contact us directly and one of our accountancy team will be happy to help

Budget Summary 2015

Wed, 15 Oct 2014 10:46:00 +0000

We have set out hereunder a summary of the more salient points of Minister Noonan's budget speech yesterday. This is only a summary of the main points - should there be any particular aspect of tax compliancy you have questions about, please do not hesitate to contact us directly.

Personal Tax

Tax rates and bands
Higher income tax rate reduced to 40% and the standard rate band increased by €1,000 for single taxpayer and €2,000 for married couple with two incomes.

USC bands and rates
Changes in USC bands, effectively extending the lower rate bands and reducing the USC rate up to €17,576 but introducing an increased rate of 8% for income over €70,000 and an 11% rate for relevant income over €100,000 for self-employed individuals.

Incentives
• HRI - Home Renovation Incentive - previously afforded to an individual’s principal private residence will be extended to rental properties, subject to conditions. HRI heretofore afforded tax relief of 13.5% of qualifying expenditure on home renovation and improvement work, with minimum expenditure of €5,000 up to a maximum of €30,000;
• EIIS – Minimum retention period by the investors has been increased from three to four years and scope of relief extended;
• SURE - Start-Up Relief for Entrepreneurs - extended to individuals who have been unemployed for up to two years; and
• Foreign Earnings Deduction will be extended for a further 3 years until 31 December 2017, with the number of qualifying days abroad reduced from 60 to 40 and the minimum stay reduced to 3 days. Qualifying countries extended to include Chile, Mexico and certain countries in the Middle East & Asia.

Water charges relief
Tax relief, payable in arrears, at 20% will be available for water charges, subject to maximum tax credit of €100 per annum.

Artist exemption
Threshold increased to €50,000 (previously €40,000) and the relief has been extended to certain non-resident artists.

Agri sector
The threshold for qualifying lease income will increase by 50%, with the introduction of a fourth threshold for lease periods 15 years or more. In addition the criteria to meet the qualification for exemption will lessen – there will be no minimum age requirement for the lessor (previously 40 years), and qualification extends to where the lessee is a company.

Business tax

Foreign Direct Investment (FDI)
• Ireland’s commitment to the 12.5% rate is reinforced

• The “Double Irish” structure abolished by new residence rules which will require all companies registered in Ireland to be also tax resident in Ireland, with the likely exception of companies tax resident in a tax resident jurisdiction. This will take effect from 1 January 2015 for new companies while a transition period until the end of 2020 will be provided for existing companies.

• A new strategy for International Financial Services in Ireland to be launched next year.

• Improvements to the special assignee relief programme (“SARP”) to be introduced.

Intellectual property
• Introduction of a “Knowledge Development Box” for intellectual property.
• Improvements to the existing intangible asset tax provisions to be introduced.
• Further improvements in the R&D tax credit relief with the phasing out of the base year from 1 January 2015.

Other measures
• Corporation tax relief for start-up companies extended for a further three years. Accelerated capital allowances for energy efficient equipment extended.
• Pension levy of .6% will not be renewed when it expires on 31 December 2014. Levy of .15% will not be renewed after 2015.

Capital Taxes

• no change to CGT and CAT rates of 33%
• the 80% Windfall Tax on gains arising from rezoning of land has been abolished with effect from 01 January 2015
• CGT relief in respect of properties bought before 31 Dec 2014 and held for 7 years is not to be extended beyond 31 Dec 2014
• extension of farm restructuring relief where first restructuring transaction is carried out before 31 Dec 2016
• CGT retirement relief expanded to include disposals of farm land which has been leased for up to 25 years
• CGT retirement relief expanded to include disposals of farm land let under conacre where disposed of before 31 Dec 2016
• CAT Agricultural Relief restricted to gifts/inheritances of agricultural property received by “active farmers” or received by individuals who let the property on a long-term basis to an active farmer
• introduction of stamp duty exemption on agricultural leases between 5 – 35 years granted to active farmers
• extension of consanguinity relief to 31 Dec 2017 for transfers of non-residential properties to certain relatives, where the transferor is under 66 years of age and the transferee is an active farmer.

Indirect Taxes

• retention of the 9% rate of VAT for the tourism sector.
• the farmer’s flat-rate addition has been increased from 5% to 5.2% with effect from 1 January 2015.
• the excise duty on a pack of 20 cigarettes is being increased by 40 cents with effect from midnight.
• the excise duty on roll-your-own tobacco is also being increased by 20 cents per 25g with effect from midnight.
• the Minister confirmed that the Betting (Amendment) Bill 2013 will be enacted by the end of the year for the extension of betting duty to remote operators and betting exchanges in 2015.
• the special relief on alcohol products tax on beers produced in microbreweries is being extended to include microbreweries which produce not more than 30,000 hectolitres per annum.
• the excise rate for natural gas and biogas as a propellant will be set at the current EU minimum rate and this rate will be held for a period of eight years.
• there are no changes to the motor tax rates.
• there are no changes to the duty on alcohol, petrol or diesel

Local Property Tax Update

Fri, 10 Oct 2014 16:30:00 +0000

The 2015 pay and file season for Local Property Tax (“LPT”) will be starting soon and Revenue will shortly begin writing to residential property owners to give them the opportunity to decide how and when they want to pay their LPT. Revenue have stated however that they will not be writing to anyone who has opted to pay LPT by deduction at source or by direct debit. Those taxpayers will continue on with their chose method.

Since the initial introduction of the LPT, a total of 14 Local Authorities have decided to reduce the rate of LPT for their respective administrative areas. One effect of this is that there will be six different rates of LPT for each property value band. The largest reductions were cuts of 15% which have been implemented by all four Dublin councils, as well as Clare & Wicklow County Councils. These reductions will be applied automatically by Revenue i.e. they do not have to be applied for.

Revenue have indicated a 95% compliance rate in respect of 2013 LPT and 94% in respect of 2014 with yields of €318m in 2013 and €385m to date in 2014. The LPT yield includes €33m in Household Charge arrears in respect of 181,000 properties.

Revenue also noted the refusal of 11,962 tax clearance requests and 13,639 income tax surcharges applied for non-compliant self-employed taxpayers and companies. There have been approximately 400 referrals to Sheriffs and over 5,000 valuations have been increased arising from a combination of self-correction and Revenue challenges.

If you would like further information on any of the above please contact one of our tax compliance team and we will be happy to help.

Consumers hit by scam emails purporting to be from Revenue

Wed, 17 Sep 2014 08:00:00 +0000

Irish internet users are being targeted by scam emails purporting to be from the Revenue Commissioners.

The fraudulent mails, with the subject line “Tax Refund Application” , claim to inform recipients that they are owed €138.50 as a tax refund.

The messages include a link to a webpage purporting to be that of “Irish Tax and Customs” and ask that the recipient to supply personal information on this page to avail of the refund.

In an effort to appear legitimate, the contents of the email are in Irish and in English.

However, internet security firm Eset Ireland said an Irish speaker would swiftly recognise “the translation as a poor Google Translate job”.

It also noted the scammer’s “sloppy copy-paste” even removed all the accented characters from the text, which also makes it rather useless, but

Nonetheless, Eset Ireland said an average unfamiliar user could still be fooled by the fact the mail and forged website are “rather official-looking”.

if consumers happen to clink on the provided links they are brought to a website at www.comunespoleto.gov.it, which is an Italian address, then redirected to an Australian-hosted fake website, registered in USA, equipped with all the official markings of Irish Tax and Customs.

“Phishing mails like this one, using a relatively rare language to address potential victims, show how the cybercriminals are targetting even small countries, just for a chance of profit,” Eset Ireland said.

“The long global path of the scam (Irish targets via Italian link via Australian site with an American site registration) on the other hand shows the complexity of the global business that is cybercrime.”

The European Consumer Centre in Ireland typically advises consumers to delete any such emails and not to click on any links.

“Such links can contain malware or viruses which allow scammers to gather personal details on the consumer and defraud them of money,” it says.

“Consumers should contact their local tax office in case of uncertainty, and remember that no government or financial institution would ask for sensitive data such as passwords, PIN or account numbers via email.”

Source The Irish Times

Positive Exchequer returns for year to August 2014

Wed, 03 Sep 2014 08:00:00 +0000

Exchequer returns for the year to date to end of August 2014 indicate that Irish tax revenues were almost €1bn above target for the year to August 2014. This has led to speculation that a less austere budget than expected might by delivered by Finance Minister Michael Noonan later this year. Mr. Noonan however, while noting that the figures “and in particular the strong performance of income and consumption taxes are further evidence that the recovery is strengthening as the year progresses” noted that “we continue to borrow an average of €800m per month and this gap needs to be further reduced.” He added that “In Budget 2015, we will target a reduction in deficit to below 3%.” The Minister did further note though that “It is clear from the strong exchequer performance to date that the level of adjustment through tax and expenditure cuts required to achieve this will be significantly less than forecast at the start of the year. This is due to the growing economy generating extra tax receipts and ongoing control of expenditure."

Total tax revenue of €24.9bn was collected in the year to date to end of August, an increase of €2bn or 8.7% on the same period last year, and €971m or 4.1% ahead of target for this year. This breaks down across the different tax heads as follows

Tax Head Receipts Increase on PY +/- Target

Income tax €10.6bn €880m (9.1%) €172m (1.7%)

Corporation tax € 2.4bn €121m (5.4%) €186m (8.5%)

VAT € 7.4bn €577m (8.5%) €261m (3.7%)

Excise duty € 3.1bn €172m (5.8%) €156m (5.2%)

Other € 1.4bn €254m (22%) €196m (16.2%)

The Exchequer deficit of €6.3bn is €1.3bn ahead of target, mainly thanks to the increased tax receipts and reduced expenditure, with much the publicised overspend on health being compensated for by lower than expected spend in other areas.

Tax Assistant Vacancy

Mon, 18 Aug 2014 08:15:00 +0000

We are currently seeking to hire an experienced Tax Assistant/Senior for an immediate start to fill a permanent vacancy.

The Role

The successful candidate will manage a portfolio of clients income tax and corporation tax compliance requirements

We are keen to hear from candidates who possess the following:

Ideally candidates would possess previous experiences in a similar role

Good general tax knowledge
Keen interest in developing their knowledge and skill base
Excellent understanding of Revenue systems, ROS, Microsoft Word and Excel
Prioritising work by exhibiting good organisational skills and effective time management
Enthusiasm and adaptability and strong interpersonal skills
Ability to work independently and unsupervised on day-to-day duties and tasks
Excellent communication skills and a good telephone manner
Ability to work in a busy environment as part of a team

Key responsibilities include

Assisting with the preparation of income tax and corporation tax returns for a portfolio of clients (high net worth individuals, sole traders, company directors)
Working in a compliance team reporting directly to Managers and Partners
Correspond with and liaise directly with clients
Where necessary, liaising with Revenue on behalf of clients
Provide other ad hoc tax related duties
Providing support and assistances with all administrative tasks related to the tax department

Reward

We offer a competitive salary for this contract position depending on experience and qualifications.

If you are interested in the above role, please visit our website (www.merrymullen.ie) and submit a CV to declan@merrymullen.ie or contact Declan Merry direct on 01 6458100

National Payments Plan (NPP) - ‘e-Day’ – 19th September 2014

Wed, 13 Aug 2014 08:15:00 +0000

The National Payments Plan (NPP) was launched in April 2013 and aims at making savings of €1bn annually to the Irish economy by increasing the use of electronic forms of payment such as debit cards and electronic banking. Ireland continues to rely heavily on cash and other paper payment instruments, and lags significantly behind our European peers in the use of more efficient electronic payment instruments. Increased use of more efficient payment methods would be expected to lead to increased competitiveness, efficiency and security.

e-Day, set for the 19th of September 2014, is the date from which Government Departments, Local Authorities and State Agencies will no longer use cheques in their dealings with businesses. According to the NPP, the particular focus of e-Day is to encourage SMEs to migrate from cheque usage as they are either issuers or receivers of more than 60% of all cheques in Ireland. A shift from cheques to electronic as a preferred method of payment will result in reduced costs and improved cash-flow for the overall business sector.

The e-Day cheque reduction initiative is one of the recommendations contained in the National Payments Plan.

See https://www.centralbank.ie/paycurr/Pages/NationalPaymentsPlan.aspx for further details

Home Renovation Incentive (HRI) Scheme - Update

Mon, 31 Mar 2014 08:15:00 +0000

Getting ready for HRI - Checklist for Contractors

Finance (No 2) Act 2013 provides for a Home Renovation Incentive (HRI) scheme, which will run from 25 October 2013 to 31 December 2015. The Incentive provides for tax relief for Homeowners by way of an Income Tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement works carried out on a main home by qualifying Contractors.

Qualifying expenditure is expenditure subject to the 13.5% VAT rate.

The works must cost a minimum of €4,405 (before VAT), which will attract a credit of €595. Where the cost of the works exceeds €30,000 (before VAT), a maximum credit of €4,050 will apply.

The credit is payable over the two years following the year in which the work is carried out and paid for. 2015 will be the first year for HRI tax credits.

The works must be carried out on or after 25 October 2013 and up to 31 December 2015. Homeowners must be Local Property Tax and Household Charge compliant in order to qualify under the Incentive while Contractors must be VAT registered and tax compliant in order to qualify to carry out works under the HRI.

While systems have yet to be developed, the Incentive will be administered through Revenue's online systems. All works, payments and claims will be registered electronically with Revenue.

Transitional arrangements, around ensuring the Contractor qualifies, are outlined in the Home Renovation Incentive (HRI) scheme Guide for Homeowners (PDF, 374KB) as well as in the relevant FAQs below. The transitional arrangements will operate in advance of the electronic HRI system.

Home Renovation Incentive (HRI) scheme Guide for Homeowners

This Guide is relevant to qualifying works carried out and paid for before April 2014. It sets out what Homeowners should do to avail of the HRI up to early April 2014. After this, Revenue will introduce an electronic HRI system. Further information on the electronic HRI system will issue closer to the system 'go live' date.

The FAQs, which will be updated on an ongoing basis, are organised into 5 sections -

If you would like further information on any of the above please contact one of our tax consultants and we will be happy to help.

Home Renovation Incentive

Wed, 23 Oct 2013 10:46:00 +0000

Home Renovation Incentive

The Budget 2014 has introduced a new Home Renovation Incentive. Details are not yet fully available so we have sumarised below information to date.

Extract from Speech

“I am introducing a home renovation tax incentive scheme. The Home Renovation Incentive will provide an income tax credit to homeowners who carry out renovation and improvement works on their principal private residences in 2014 and 2015. The incentive is payable over the two years following the year in which the work is carried out. The credit will be calculated at a rate of 13.5% on all qualifying expenditure over €5,000 up to a maximum of €30,000. Qualifying works include extensions and renovations to the home, window-fitting, plumbing, tiling and plastering. This incentive will support fully tax compliant builders and will move activity out of the shadow economy into the legitimate economy as all expenditure and relief claims will have to be registered electronically with the Revenue Commissioners.”

What was announced in the Budget

The following is based on details announced in the Budget on 15 October, 2013 and may be subject to changes or clarification in the forthcoming Finance (No.2) 2013 Bill, which will be published later this month.

This scheme will provide a tax credit to homeowners, as an incentive to carry out renovation, repair or improvement of the individual’s principal private residence and will apply to works carried out in 2014 and 2015.

Qualifying work must cost a minimum of €5,000 ex VAT. While there is no upper limit on the cost of work, the tax relief will only be given in relation to a maximum, VAT-exclusive expenditure of €30,000. The minimum tax credit is €675 (based on qualifying expenditure of €5,000 (excluding VAT)
x 13.5%) and the maximum is €4,050 (based on qualifying expenditure of €30,000 (excluding VAT) x 13.5%). The tax credit is non-refundable so any unused tax credit will roll forward to the next year. The tax credit is payable over the two years following the year in which the work is carried
out.

Repair, renovation or improvement work to a principal private residence, which is subject to VAT at 13.5%, is covered. Items such as furniture, white goods and carpets will not be covered.

The valuation of a property for LPT purposes on 1 May 2013 will stay the same for 2013, 2014, 2015 and 2016, regardless of any improvements made to the property.

The tax credit is only available to the owner occupiers of a principal private residence who are tax compliant. Specifically, the homeowner’s LPT and Household Charge must be up to date. Building Contractors who are tax compliant are eligible to carry out work under the scheme. The tax credit can be claimed after the work is completed.

The scheme will operate through Revenue’s online systems - ROS, eRCT, PAYE Anytime, LPT online.

As the credit will be payable over two years, this means those on lower incomes who might not otherwise have had sufficient tax liability to qualify for the Scheme, will be included.

Budget Summary 2014

Tue, 15 Oct 2013 10:46:00 +0000

If you have any queries our tax consultants can help - email enquiries@merrymullen.ie. We'd be delighted to hear from you.

PERSONAL TAX

Income tax rates and bands

There have been no changes to the income tax rates and bands.

USC

There have been no changes to the USC rates and bands.

PRSI

No changes to the PRSI rates were announced. However, as a carry forward from Budget 2013, with effect from 1 January 2014, PAYE employees will be subject to PRSI on their unearned income, including rental, investment, dividends and bank deposit interest income.

In addition the 4.25% low rate of PRSI for employers is due to revert to 8.5% on 1 January 2014.

Medical insurance relief

Tax relief for medical insurance premiums will be restricted to the first €1,000 per adult insured and the first €500 per child insured. The tax credit for these premiums will remain at the standard tax rate.

One-parent family tax credit

This credit is to be replaced with a new single person child carer tax credit with effect from 1 January 2014. The new credit will be to the same value (€1,650) but will be available to the principal carer of the child only.

Home Renovation Incentive (HRI)

Tax relief of 13.5% will be available for qualifying expenditure on home renovation and improvement work. The relief will be granted by way of a tax credit split over two years following the year in which the works are carried out. The minimum expenditure must be €5,000 and relief will be provided on all qualifying expenditure up to a maximum of €30,000. The relief relates to the principal private residence of an individual only while the relevant contractors must be tax compliant.

Start Your Own Business (SYOB)

An exemption from income tax up to a maximum of €40,000 per annum will be provided for a period of two years to individuals who set up a qualifying, un-incorporated business, having been unemployed for a period of at least 15 months prior to establishing the business.

High Earners’ Restriction (HER) amendments

The initial 30% relief for investments under the Employment and Investment Incentive Scheme (EIIS) will be removed from the HER calculation for a period of three years.

Capital allowances and losses on plant and machinery used in manufacturing trades, which are claimed by passive investors, will be included as a specified relief for the purposes of the HER.

Film relief

The new film relief scheme is being brought forward from 2016 to 2015. This means that the existing form of tax relief available to individuals investing in the film industry will cease a year earlier than expected. The definition of ‘eligible individual’ for the purposes of the relief is to be extended to include non-EU talent, in conjunction with the introduction of a withholding tax. This is subject to EU State Aid approval and a commencement order.

Tax relief on loans to acquire an interest in a partnership

This relief will be withdrawn on a phased basis over 4 years. Relief will not be allowed for new loans taken out from 15 October 2013.

Existing claimants will retain the relief on a reducing rate basis until 1 January 2017.

Lump sum payments

Top slicing relief will no longer be available in respect of all ex-gratia lump sum payments arising on or after 1 January 2014. All lump sum payments to individuals who worked in Magdalene Laundries will be exempt from tax.

Living city initiative

This will be extended to include residential properties constructed prior to 1915 and to include Cork, Galway, Kilkenny and Dublin. This initiative is subject to EU State Aid approval and a commencement order.

Pension contributions

Income tax relief at the marginal rate will remain for qualifying pension contributions.

Deposit Interest Retention Tax and exit taxes on life assurance policies and investment funds

The rate of retention tax that applies to deposit interest, together with the rates of exit tax that apply to life assurance policies and investment funds, is being increased to 41% (previously 33% or 36% depending on the frequency of the payment). The increased rate will apply to payments, including deemed payments, made on or after 1 January 2014.

Farmer taxation

The eligibility for young trained farmers relief is being extended by adding three more qualifying courses to the list of relevant qualifications required for the 100% rate of stock relief and for the stamp duty relief for the purchase of agricultural properties.

BUSINESS TAX

The Minister’s speech contained 25 pro-business measures, many of which are non-tax related and some of which are covered elsewhere in this summary. The key corporation tax measures are set out below.

R&D tax credit

Last year the Minister announced that a full review of the R&D tax credit regime would be carried out. On foot of this review a number of changes have now been introduced:

- the first €300,000 of qualifying expenditure will benefit from the 25% R&D tax credit on a volume basis, with no requirement to refer to the 2003 base year spend. This is an increase of €100,000. For R&D expenditure in excess of €300,000 the relief continues to be based on incremental costs in excess of the 2003 spend.

- it is also intended that the base year 2003 will be phased out entirely over time.

- the limit on the amount of expenditure on R&D outsourced to third parties which can qualify for the R&D tax credit is being increased from 10% to 15%.

- since 2012, a company with an entitlement to the R&D tax credit can surrender a portion of the credit to key employees, effectively in the form of a tax free payment. Subject to certain conditions, the employees can use the benefit of the tax credit to reduce their own income tax liability. Amendments are being made to this element of the scheme to remove some barriers to take-up that were identified in the review process.

Foreign direct investment

In tandem with Budget 2014, the Minister also published Ireland’s International Tax Strategy statement. Broadly, this reaffirms Ireland’s commitment to maintaining an open and transparent tax regime. It also confirms our commitment to retaining the 12.5% corporation tax rate, “the tax rate is settled policy, we are 100% committed to the 12.5% corporation tax rate, this will not change”.

The International Tax Strategy paper also notes the active role that Ireland is taking in the BEPS project, which broadly seeks to eliminate global tax mismatches and ensure that the global tax framework is “fit for purpose”.

This is particularly relevant given the dramatic changes in recent years in how companies do business across borders.

An interesting change flagged in the Minister’s speech is an amendment to the tax rules for certain Irish incorporated companies that are not regarded as tax resident anywhere. While the detail will be included in the Finance Bill, it will no longer be possible for such companies to remain “stateless” in terms of their tax residence.

Banking sector

The Minister introduced a levy on banks to operate in the period 2014 to 2016. The levy will be broadly based on the amount of DIRT tax paid by the banks in 2011 and mirrors what is already in place in several other EU Member States.

In a relieving amendment, the restriction on the use of tax losses generated by banks that transferred loans to NAMA has been lifted. Under the old provisions, the banks could only shelter half of their future taxable profits through the use of historic losses. This restriction has now been removed.

CAPITAL TAXES

Capital Gains Tax (CGT)

CGT rate remains unchanged at 33%.

CGT entrepreneurial relief

A new relief from CGT has been introduced to encourage individuals to reinvest in trading assets. The relief applies to individuals who have paid CGT on the prior disposal of an asset (since 01 January 2010). The reinvestment must be:

1.in “an asset for use in a new productive trading activity”/“new business”;

2.made between 01 January 2014 and 31 December 2018; and

3.the new asset must be held for 3 years prior to its subsequent disposal.

The CGT payable on the disposal of the new asset will be reduced by the lower of:

- the CGT paid by the individual on a previous disposal of assets since 01 January 2010; and

- 50% of the CGT due on the disposal of the new investment.

The new relief is subject to EU State Aid approval.

7 year CGT holiday extended

The relief from CGT in respect of real property bought and held for at least seven years has been extended. This relief now applies to real property acquired before 31 December 2014.

Retirement relief for farmland under long leases

Retirement relief has been extended to include the disposal of leased farmland (minimum of a 5 year lease). The disposal must be to a person other than the child of the vendor.

This relief is aimed at encouraging older farmers with no children to lease out their farms to younger farmers.

Capital Acquisitions Tax (CAT)

CAT rate remains unchanged at 33%. There is no change to the tax-free thresholds.

Stamp duty

The transfer of shares in companies on the Enterprise Securities Market (ESM) of the Irish Stock Exchange will be exempt from stamp duty. This exemption is subject to commencement order.

Stamp duty rates otherwise remain unchanged.

INDIRECT TAXES

Retention of the 9% VAT rate

The temporary 9% VAT rate applying to the tourism and hospitality sectors is due to revert to 13.5% on 1 January 2014. The Minister has announced that the rate will remain in place for the foreseeable future.

Farmers flat rate addition

The flat rate addition, payable to unregistered farmers to compensate them for VAT incurred on costs, will increase to 5% from 4.8% from 1 January 2014. The VAT rate applicable to the sale of livestock remains at 4.8%.

Cash receipts basis

Traders whose turnover is below the current threshold of €1.25m are entitled to account to Revenue for VAT on sales when they get paid, rather than when they issue sales invoices. This threshold will be increased to €2m with effect from 1 May 2014 and will extend the availability of this important cash flow saving measure to a larger number of traders.

Excise changes

From midnight on Budget night, the excise applicable to a packet of 20 cigarettes will increase by 10 cents (with pro rata increases for other tobacco products), a pint of beer or cider or a standard measure of spirits will increase by 10 cents while a bottle of wine will increase by 50 cents (all increases are VAT inclusive). There is no change in the excise applicable to petrol, diesel or home heating oil.

VAT anti-fraud measures

To assist Revenue in combating the shadow economy, legislative changes will be introduced in three areas:

- disallowance of input VAT – businesses which have not paid (in full or in part) for supplies within six months will be required to repay the VAT claimed on those supplies (a similar provision already applies in the UK).

- quick reaction mechanism – allows Revenue to introduce an emergency and temporary reverse charge mechanism to certain goods and services to deal with sudden large scale VAT fraud.

- record keeping – powers to allow Revenue issue notices to traders to procure specific information where Revenue believe that the specified records might assist in identifying VAT fraud.

Air travel tax

This will be reduced to zero with effect from 1 April 2014 with the objective that airlines increase routes and flight numbers as a result of the initiative.

PENSIONS

Tax relief

Relief for pension contributions continues at the marginal rate of tax.

Pension levy

The 0.6% Pension levy introduced to fund the Jobs Initiative in 2011 will be abolished from 31st of December 2014. An additional levy on pension funds of 0.15% will, however, be introduced for 2014 and 2015. Therefore the total pension levy in 2014 will be 0.75% reducing to 0.15% in 2015.

Change to the maximum allowable pension fund.

The limit on the total capital value of pension benefits that an individual can draw in their lifetime, where those benefits are drawn after 7th of December 2005, has been reduced from €2.3 million to €2 million. This limit is known as the Standard Fund Threshold (SFT). Individuals with pension benefits in excess of €2 million on 1st of January 2014 will be able to protect the capital value of those rights by claiming a Personal Fund Threshold (PFT) subject to a maximum of €2.3 million, being the old SFT. Those who already have a PFT will retain it and do not need to take any action.

In valuing Defined Benefit rights the current capitalisation factor of 20 will apply for benefits accrued to 1 January 2014. It is proposed that benefits accrued after this date will be capitalised using a new age related factor. For example at age 50 or less the capitalisation factor will be 37 while at 65 it will be 26

If you have any queries our tax consultants can help - email enquiries@merrymullen.ie. We'd be delighted to hear from you.

Budget Summary 2014

Tue, 15 Oct 2013 10:46:00 +0000

PERSONAL TAX

Income tax rates and bands

There have been no changes to the income tax rates and bands.

USC

There have been no changes to the USC rates and bands.

PRSI

In addition the 4.25% low rate of PRSI for employers is due to revert to 8.5% on 1 January 2014.

Medical insurance relief

One-parent family tax credit

Home Renovation Incentive (HRI)

Start Your Own Business (SYOB)

High Earners’ Restriction (HER) amendments

The initial 30% relief for investments under the Employment and Investment Incentive Scheme (EIIS) will be removed from the HER calculation for a period of three years.

Capital allowances and losses on plant and machinery used in manufacturing trades, which are claimed by passive investors, will be included as a specified relief for the purposes of the HER.

Film relief

Tax relief on loans to acquire an interest in a partnership

This relief will be withdrawn on a phased basis over 4 years. Relief will not be allowed for new loans taken out from 15 October 2013.

Existing claimants will retain the relief on a reducing rate basis until 1 January 2017.

Lump sum payments

Living city initiative

Pension contributions

Income tax relief at the marginal rate will remain for qualifying pension contributions.

Deposit Interest Retention Tax and exit taxes on life assurance policies and investment funds

Farmer taxation

BUSINESS TAX

R&D tax credit

Last year the Minister announced that a full review of the R&D tax credit regime would be carried out. On foot of this review a number of changes have now been introduced:

- it is also intended that the base year 2003 will be phased out entirely over time.

- the limit on the amount of expenditure on R&D outsourced to third parties which can qualify for the R&D tax credit is being increased from 10% to 15%.

Foreign direct investment

This is particularly relevant given the dramatic changes in recent years in how companies do business across borders.

Banking sector

CAPITAL TAXES

Capital Gains Tax (CGT)

CGT rate remains unchanged at 33%.

CGT entrepreneurial relief

1.in “an asset for use in a new productive trading activity”/“new business”;

2.made between 01 January 2014 and 31 December 2018; and

3.the new asset must be held for 3 years prior to its subsequent disposal.

The CGT payable on the disposal of the new asset will be reduced by the lower of:

- the CGT paid by the individual on a previous disposal of assets since 01 January 2010; and

- 50% of the CGT due on the disposal of the new investment.

The new relief is subject to EU State Aid approval.

7 year CGT holiday extended

The relief from CGT in respect of real property bought and held for at least seven years has been extended. This relief now applies to real property acquired before 31 December 2014.

Retirement relief for farmland under long leases

Retirement relief has been extended to include the disposal of leased farmland (minimum of a 5 year lease). The disposal must be to a person other than the child of the vendor.

This relief is aimed at encouraging older farmers with no children to lease out their farms to younger farmers.

Capital Acquisitions Tax (CAT)

CAT rate remains unchanged at 33%. There is no change to the tax-free thresholds.

Stamp duty

The transfer of shares in companies on the Enterprise Securities Market (ESM) of the Irish Stock Exchange will be exempt from stamp duty. This exemption is subject to commencement order.

Stamp duty rates otherwise remain unchanged.

INDIRECT TAXES

Retention of the 9% VAT rate

Farmers flat rate addition

Cash receipts basis

Excise changes

VAT anti-fraud measures

To assist Revenue in combating the shadow economy, legislative changes will be introduced in three areas:

- quick reaction mechanism – allows Revenue to introduce an emergency and temporary reverse charge mechanism to certain goods and services to deal with sudden large scale VAT fraud.

- record keeping – powers to allow Revenue issue notices to traders to procure specific information where Revenue believe that the specified records might assist in identifying VAT fraud.

Air travel tax

This will be reduced to zero with effect from 1 April 2014 with the objective that airlines increase routes and flight numbers as a result of the initiative.

PENSIONS

Tax relief

Relief for pension contributions continues at the marginal rate of tax.

Pension levy

Change to the maximum allowable pension fund.

If you have any queries our tax consultants can help - email enquiries@merrymullen.ie. We'd be delighted to hear from you.

Prosectutions for late filing of CRO Annual Returns

Wed, 09 Oct 2013 10:46:00 +0000

On Monday, October 14th 2013, dozens of companies have been summoned to appear in front of a District Court Judge to answer charges that they were late in filing one or more Annual Returns. These companies face fines of up to €2,500 + costs for each summons they are convicted on, and this is in addition to the usual CRO late filing penalties.

This is part of the CRO's on-going campaign to 'encourage' companies to file on time. Unfortunately, the CRO will not issue a list of all the companies that are to appear on October 14th, but we can advise that those required to attend have already received their summonses by now.

All companies must file annual retums annually. Any Company, or a Director of any company, which is even one year behind in filing its Annual Returns and accounts can potentially be Summonsed. Because these criteria create a very large group, the selection by for prosecution is as a direct result of the CRO’s “Integrated Enforcement Environment” (IEE). This provides that the severity of the enforcementmeasures employed by the CRO relate directly to a company’s annual return compliance history for the previous years. Essentially companies are ranked in terms of their recent compliance history, with the level of late filing fees levied also taken into consideration. The more non-compliant a company has been, the more likely is the possibility of being summonsed.

We can assist you by preparing any outstanding returns along with dormant accounts (audited/un-audited) where appropriate. Through our Company Secretarial Maintenance service, we can also ensure that you never have to worry about filing annual returns again. And where a company has come to the end of its natural life we can also arrange for a Voluntary Strike Off or a Members Voluntary Winding Up so that you do not have the on-going costs of keeping up to date.

For further details on any of these services contact our Company Secretarial Team at enquiries@merrymullen.ie. We'd be delighted to hear from you.

Revenue audits for failing to pay property tax

Tue, 08 Oct 2013 10:46:00 +0000

THOUSANDS of people who are due to file their taxes in the next three weeks have been warned they risk a Revenue audit if they fail to pay the property tax. People who dodge the tax will be regarded as "not tax compliant" – even if they file a tax return and pay all other taxes.

Some 600,000 people are expected to file tax returns from the end of this month. This is mainly made up of the self-employed and farmers, but also around 275,000 PAYE workers who have rental, dividend and other income, which was not taxed when they got it.

Those who submit their return online have until Thursday, November 14.

Around one in 10 homeowners has failed to pay the controversial property tax. This amounts to 159,000 households.

A spokeswoman for the Revenue Commissioners said people who are due to file a tax return, but have yet to pay the property tax, will be regarded as "non-tax compliant".

EVASION

Revenue confirmed these people would leave themselves open to a tax audit. This involves Revenue officials poring over the bank accounts, trading information and other financial documents of a person to check for tax evasion.

And those who have to file a tax return but have not paid the property tax could also be hit with a surcharge of 10pc of the income tax they owe.

Tax expert Cathal Maxwell, of PayLessTax.ie, said the move to impose the special charge would mean that a sole trader who owes €10,000 in income tax would be hit with an additional charge of €1,000 if they failed to pay the property tax.

The surcharge will be imposed on those who fail to submit a local property tax return, who fail to pay the property tax, or who have not entered into an agreement with Revenue.

The Revenue warning comes after it released new data showing that one in 10 households has yet to pay the property tax.

The lowest compliance rates are in Donegal and Louth, at 84pc, suggesting that Revenue may target offenders in these counties first.

In the capital, Dublin city has the lowest compliance rate at 87pc.

But Sligo, Waterford, Offaly, Meath, Mayo, Longford, Limerick City, Leitrim, Laois, Kerry, Galway, and Cork County are also below the 90pc rate.

The Revenue figures show that three out of four homeowners valued their homes at €200,000 or less for the controversial new tax.

A quarter of homeowners said their property was valued at less than €100,000, according to the Revenue.

Just over half of those who paid used credit or debit cards.

Some €200m has been raised from the tax so far.

Source: Irish Independent

If you would like further information on any of the above please contact one of our tax consultants and we will be happy to help.