We must also be aware of the introduction of the requirement to pay and file taxes electronically (efiling) in a number of phases which began in 2009. Since then, it has become mandatory for a range of taxpayers to make certain returns and payments online. These include:
Under Phase 1 – Government departments/bodies and large companies whose tax affairs are managed by Revenue’s Large Cases Division.
Under Phase 2 – Other “larger companies”, local authorities and semi-State bodies/agencies.
The next extension of mandatory efiling, Phase 3, is being rolled out in two stages this year. 1 June marks the commencement of stage 1 of phase 3, with stage 2 to follow in October. Many taxpayers currently only file their income tax returns online and will now have to also efile their other returns, for example VAT and PAYE/PRSI returns. According to Revenue statistics for 2010 only 40% of P30s and 49% of VAT returns were filed online. Therefore, this development represents a significant change for some clients who may be seeking some help and guidance from their tax advisors on the matter.
Those Affected by the Upcoming 1 June Deadline
From 1 June returns/payments must be made online by the following categories of persons/businesses:
-All companies, trusts, partnerships, collective investment undertakings and European Economic Interest Groupings.
-Individuals filing stamp duty returns for instruments executed on or after 1 June 2011.
-Individuals or companies filing a return of payments to third parties (Form 46G)
-Individuals subject to the high earners restriction.
-Individuals benefitting from or acquiring foreign life policies, offshore funds or other offshore products.
-Individuals claiming a range of property based incentives (residential and industrial buildings allowances).
Revenue have written to those taxpayers and agents affected by this requirement. Agents have been provided with lists of their clients falling within the requirement to efile, as identified by Revenue’s systems. If the list which you receive is incomplete or includes taxpayers for whom you no longer act it is suggested that you contact Revenue to enable them to update their files accordingly.
Revenue have a dedicated section on their website under mandatory efiling with the relevant Regulations, details of the returns to be filed, FAQs and information on using ROS.
This was an update from Irish Taxation Institute!!