Factsheets

Albeit the announcements made on Budget Day were relatively subtle on the indirect tax front, the Finance Bill (the Bill) introduces a variety of VAT changes of significance to the financial services industry. In this article, we focus on the most notable changes proposed.

Finance Bill 2022 (the Bill) contains the legislative provisions to implement many of the Budget Day announcements as well as a number of other measures not already announced. In this article, we outline the key measures, which relate to the Irish real estate sector and how they will likely impact taxpayers operating within the sector.

Finance Bill 2022 (the Bill) contains the legislative provisions to implement many of the Budget 2023 announcements as well as a number of other measures not already announced. In this article, we outline the key measures, which relate to employees and employers.

In December 2021, the European Commission (EC) published its proposal for Anti-Tax Avoidance Directive III (ATAD III) which aims to discourage the misuse of shell companies within the EU.

This correspondence, deemed a Level 1 Compliance Intervention, offers all eligible taxpayers the opportunity to self-review their tax returns for Period 1 (which ended on 31 December 2021 or 30 April 2022 where extension applied) and make an unprompted qualifying disclosure by 31 January 2023 in relation to any additional tax liabilities identified.

The European Commission recently published a proposal for a new EU Directive creating a debt-equity bias reduction allowance (‘DEBRA’) and further limitation of the deductibility of interest for corporate tax purposes. This initiative is part of the “EU strategy on business taxation”.

In recent years, there has been a global movement towards increased tax transparency, particularly following a number of high profile financial crises and scandals. Coupled with the growth in the digital economy as well as crypto-assets and e-money in particular, the European Union (EU) has proposed a new Directive on Administrative Cooperation (DAC) known as “DAC8”.

The Companies (Corporate Enforcement Authority) Act 2021 (the “Act”) has now been commenced. The orders for the commencement of the Act and the establishment of the Corporate Enforcement Authority were signed by the Tánaiste on 5 and 6 July 2022 respectively. The Act was previously passed by the Oireachtas and signed into law by the President on 22 December 2021.

A company strike off is a process whereby a company is removed from the Register of Companies and ceases to exist. A company which has been struck off or dissolved can no longer trade, sell assets or make payments.

The Irish Transfer Pricing (TP) rules introduced by Finance Act (FA) 2019 apply to Accounting Periods starting on or after 1 January 2020.

On 14 April 2022, Revenue announced a concession in relation to the Irish tax treatment of Ukrainian citizens who continue to be employed by their Ukrainian employer and who perform their duties remotely from Ireland. We have outlined a summary of Revenue’s treatment of the Irish tax position of Ukrainian citizens who work remotely in Ireland below.

Company registers are official books kept by a company relating to legal and statutory matters. They are also referred to as statutory registers, combined registers or company books.

Revenue has published its new Code of Practice for Compliance interventions. The new Code which will be effective from 1 May 2022 sets out their revised framework for interventions from that date and provides for a new graduated response to taxpayer compliance behaviour and also makes significant changes to many of the rules around voluntary disclosure.

Is your business involved in both VAT exempt and VAT taxable activities with a 31 December accounting year end? If so, your annual VAT adjustment for 2021 is due to be submitted to Revenue on or before 23 July 2022.

In accordance with the first EU’s Anti-Tax Avoidance Directive (‘ATAD’), Ireland was required to introduce interest limitation rules (“ILR”). These rules will apply for accounting periods commencing on or after 1 January 2022.

Anti-Money Laundering legislation requires each EU Member State to establish a Central Register of Beneficial Ownership of Trusts (CRBOT).