In the Dáil last week, Minister for Finance Michael Noonan stated that over 2,300 offshore disclosures with a value of over €70 million were received by Revenue as part of the offshore disclosure regime. While €70 million is a sizeable sum, and it is a positive development that over 2,000 cases of tax evasion are being resolved, progress can be seen from the last comparable Offshore Assets campaign which resulted in settlements in excess of €1 billion being made.
Revenue has updated its guidance to set out the VAT treatment that applies to education and vocational training as well as retraining services. Vocational training and retraining services are exempt from VAT where certain conditions are met and these are laid out in detail in the manual.
The manual also details the VAT treatment of education services, private tuition, conferences, research services as well as covering place of supply rules and supplies of goods or services incidental to education.
The Tax and Duty manual can be found on the Revenue website and Revenue eBrief No. 37/17 gives notice of the change.
Revenue has released the following forms for the 2016 and 2017 tax years:
- Form CT1 for accounting periods ending in 2017
- Revised Form CT1 for accounting periods ending in 2016
- Form 46G (Company) for accounting periods ending in 2017
- 46G Return tool for 2016 and 2017
Along with the returns, the Tax and Duty manual has been updated to include details of the main changes to the forms. The main changes to the 2017 CT1 return include a new section for including details on section 110 qualifying companies, a new box to allow companies claim a loss in respect of qualifying assets as part of the knowledge development box regime and also a box to enable companies claim loss on a value basis in respect of qualifying assets under section 396B TCA 1997. Similar changes in relation to loss relief are made to the 2016 CT1.
Further details are provided in Revenue eBrief No. 39/17.
The end-April 2017 Exchequer figures continued the recent disappointing trend in recording a deficit of €2,537 million compared to a deficit of €1,055 million in the same period last year. The main reason cited for this difference in the Department of Finance’s report is the fact that the Exchequer benefit from a €1,795 receipt of surplus income from the Central Bank in April 2016 and a similar distribution is expected in May. This does not conceal the fact that the tax figures are a bit soft.
The Trump administration launched another round of tax reform proposals last Wednesday. The proposals include a 15 percent business tax rate and a one-time tax to encourage the repatriation of trillions of dollars held overseas. The proposals are very broadly drafted and there was no information on how the tax cuts would be funded other than through economic growth.
Throughout the month of May, the Trump Administration plans to consult with various stakeholders and the American Congress to develop the reform measures in more detail.
Last week we advised readers that Finance Bill 2017 was to be rushed through Parliament. The Bill subsequently received Royal Assent on 27th April. Given that the Bill did not receive the same level of parliamentary and legislative scrutiny as previous Finance Bills, the Government decided to remove a number of key provisions from the Bill before it was enacted.
The key development this week is that the EU27 met at a European Council meeting at the weekend to sign off on the negotiating guidelines. In our weekly Brexit round up, we cover Chancellor Angela Merkel’s warning Britons that they shouldn’t have illusions that they will be able to enjoy the privileges of EU membership, along with former UK leader Tony Blair reportedly stating that the UK may very well want to re-join the EU after it leaves.
Revenue published its annual report for 2016 last week with the Revenue Chairman noting that the collection of taxes and duties in a fair manner remains the focus for Revenue. Revenue say they want to improve the way they interact with taxpayers, along with protecting the economy and supporting trade with the impending Brexit.