Updates from the TALC Collections Sub-Committee

 

The TALC Collections Sub-Committee have provided updates on iXBRL filings, Income Tax Filing 2020 and the debt warehousing scheme as follows;
 
iXBRL Filings
The challenges in complying with the upcoming iXBRL filing deadline for some companies with a 31 December 2020 year end, due to exceptional difficulties caused by the pandemic, and Revenue’s approach to delayed submissions were discussed at the last TALC Collections Sub-committee.

Following the meeting, Revenue provided the following clarification:
 
“Further to Item 6 on iXBRL Filings from TALC Collections on 25 November, we have issued an internal update to Revenue colleagues to say that some companies may be unable to submit their iXBRL financial statements for the year ended 31 December 2020 before the 23 December 2021 deadline due to difficulties completing audits and signing off on financial statements during the ongoing Covid-19 pandemic. As such, Revenue have been advised that they may see an increase in requests for waivers of Corporation Tax surcharges where the iXBRL submission is filed late and/or requests for tax clearance in the absence of the iXBRL submission”.

Colleagues may waive the Corporation Tax surcharge or issue tax clearance on a case-by-case basis when a company is genuinely unable to file the iXBRL financial statements due to extenuating circumstances, for example where key personnel are absent due to Covid.Affected companies should contact their operational branch via MyEnquiries where they wish to request a waiver of the Corporation Tax surcharge and/or request tax clearance.

 
Income Tax filing update 2020
 

Revenue received requests from 144 tax agents seeking additional time to file 4,700 income tax returns for 2020 based on their exceptional difficulties in meeting the filing deadline, due to COVID-19. All the requests received have been processed and the facility to make such a request has now closed.

 Revenue reminded that ROS automatically applies a late filing surcharge when a return is submitted after the filing deadline. Therefore, the returns included on the lists agreed with Revenue will be surcharged by the system when filed and the surcharges will need to be removed manually by Revenue. A caseworker is being assigned to each list and once the returns are filed the surcharge applied by the system is removed by the assigned case worker. Those who provided a list shall also qualify for tax clearance extensions.
 
Statistics
 Debt Warehousing Scheme
  • Approximately 4310 individuals filing Income Tax Returns 2020 availed of income tax debt warehousing (based on at least a 25% reduction in their total income when compared to 2019, due to the impact of 2019 restrictions).

 

  • 922 individuals availed of the extended scheme under section 1080B, as amended by the Financial Bill 2021, to cater for those directors/employees impacted by section 997A whose PAYE was warehoused by their employers.

 

  • In February 2022 Revenue intends to issue further letters to those businesses participating in the Debt Warehousing Scheme to clarify the quantum of tax debt that has been warehoused.

 

  • Period 1 (the Covid restricted trading phase) of Debt Warehousing Scheme is scheduled to end on 31 December 2021.  Phase 2 is set to commence on the 1st of January 2022.

 

  • Revenue have confirmed that they shall issue customised letters to businesses this week, in Revenues personal and business divisions where Revenue records show that the business is not up to date with its tax returns.  Revenue shall also contact those businesses in the (MED) Medium Enterprise Division and Large Corporates Division (LCD) that have applied for inclusion in the Debt warehousing scheme but have outstanding returns.

 

  • In February 2022 Revenue shall also issue liabilities warehoused to taxpayers and granting options to park liabilities during 2022 and begin applying interest in 2023.

 

  • Phased Payment Arrangement

Revenue is working on a development to the PPA to allow warehoused and non-warehoused debt to be included in a single PPA.This is expected to be implemented in March 2022.