Compliance and Regulatory Update

Compliance and Regulatory Updates: January 2018

Revenue has released various technical information updates in January. The updates relate to topics such as the deductions of expenses, civil partnerships, mortgage interest relief, home carer tax credit and the deduction of loan interest in relation to residential accommodation. The below is a compiled list of resources that detail the compliance and regulatory updates published in January 2018.

Compliance and Regulatory Updates graphic | Paycheck Plus Payroll Service Specialists

Update to Electronic Relevant Contracts Tax System

The input of payment notifications, specifically where a contract is closed, has been updated in the Electronic Relevant Contracts Tax System (Part 18-02-11).

Value-Added Tax Notes for Guidance

Revenue’s VAT Policy and Legislation Branch issued “Notes for Guidance” relating to VAT in the Finance Act 2017. The published document can be found here: VAT guidance.

Update to Anti-avoidance Measures

Two new anti-avoidance subsections have been added to Section 135 TCA (Finance Act 2017). The new measures tackle the extraction of value from a company as capital (as opposed to income). For further information and guidance, click here.

Deduction for Expenses

The Deduction for Expenses In Respect Of Annual Membership Fees Paid to a Professional Body has been updated to clarify when these yearly fees are permitted to be a deduction. For more details, click here.

Civil Partnership Tax Update

The Tax Treatment of Civil Partners document (Part 44A-01-01) has been updated – further details (e.g. more illustrative examples) have been included to help clarify the tax treatment of Civil Partners.

Capital Acquisitions Tax (Woodland / Forestry Companies – Business Relief)

While the operation of this relief is unchanged, the Capital Acquisitions Tax (Part 12) has been updated to include further detail and clarification relating to woodland / forestry companies. The complete amended document can be found here.

Update to “Review of Opinions or Confirmations”

If you rely on a confirmation (or opinion) issued by Revenue in 2012, in relation to a period or transaction, in 2018, and if you want to continue to rely on that confirmation (or opinion), you must apply for its extension / renewal by March 30th 2018.

To view the updated document visit: Review of Opinions or Confirmations Part 37-00-41.

Mortgage Interest Relief

Mortgage interest relief has been extended by 3 years (on a tapered basis) – this is now reflected here: Tax and Duty Manual Part 08-03-08.

Home Carer Tax Credit

From Jan 1st 2018, as per the Finance Act 2017, the Home Carer Tax Credit has increased to €1,200 – this is now reflected in Home Carer Tax Credit Part 15-01-29.

Revenue Information Powers

Certain Revenue Information Powers Manuals have been updated. Specifically, as Revenue notes:

The following Revenue Information Powers Manuals have been amended to reflect Finance Act 2017 amendments;

38-04-04f (section 902) and 38-04-04c (section 906A) regarding the content of the notice to be served when the power is exercised, and,

38-04-04g (section 902A) and 38-04-04d( section 908) regarding the appropriate grounds for use of the power.

The  Information Powers manual 38-04-02 has also been updated to give further information on the use of Revenue Powers for Exchange of Information purposes.

Rental Income and the Deduction of Loan Interest

Due to the updated cap on loan interest in relation to residential accommodation, the Tax and Duty Manual Part 04-08-06 was amended. Details can be found here: Deductibility of Loan Interest in Computing Rental.

Inheritance Tax and Personal Representatives or solicitors

Revenue has provided steps that resident Personal Representatives or solicitors can take to ensure that they are not liable for the Inheritance Tax of a non-resident beneficiary – details can be found here: Part 2 – The Inland Revenue Affidavit.

New Manual: Averaging of Farm Profits

Revenue has released a new manual in relation to the averaging of farm profits, which can be found here: Tax & Duty Manual Part 23-01-34.

Focus on Profits

Becoming and remaining compliant with the continuous regulatory updates can be a difficult and time consuming task for businesses. For this reason, more and more businesses are choosing to outsource to specialist partners. Here at Paycheck Plus we provide global award winning outsourced payroll services – we ensure that our clients are compliant with the most recent regulatory updates to payroll legislation. This enables our clients to focus more on profits rather than on regulatory updates, while still remaining compliant.

To ensure payroll compliance with the most recent regulatory updates contact us today.

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