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Published on Fri 21 of Jan, 2011
Revenue eBrief No. 03/2011: Relevant Contracts Tax (RCT) in Liquidation, Receivership or Examinership

Tax law provides no exemption from the operation of RCT in the case of liquidation, receivership or examinership. Revenue takes the view that all aspects of RCT law – including deduction by the principal contractor and offset by Revenue of RCT against outstanding taxes – must be applied as normal, notwithstanding the fact that a liquidator, receiver or examiner has been appointed to the subcontracting company.

As such, any RCT deducted from a company in liquidation, receivership or examinership and remitted to Revenue will be offset against outstanding taxes in the order statutorily provided for, with any balance being repaid to the liquidator, receiver or examiner.

Revenue does, however, distinguish between RCT deducted on foot of a contract entered into by a company prior to receivership or liquidation and new contracts entered into by the receiver/liquidator (in his capacity as receiver/liquidator of the company) should the receiver/liquidator continue to trade the business. In such cases, if the contract which gave rise to the RCT deduction was entered into by the liquidator/receiver following their appointment, the RCT deducted should be offset only against liabilities of the post-appointment period, with any balance being repaid to the liquidator/receiver. If it is not clear whether the relevant contract was entered pre- or post- appointment, the receiver/liquidator should be asked to clarify the position. The tax number of the subcontractor shown on the RCT Deduction Card might be informative in this situation.

It should be noted that where a company successfully exits examinership and tax has been written off in line with the Court-approved scheme of arrangement, these taxes cannot be subsequently written back in for the purposes of offset.

Full Revenue eBrief can be read here 2
Published on Wed 12 of Jan, 2011
Revenue eBrief No. 01/11 P35 Refunds and P35 Amendments

P35 Refunds

To avoid delays in the processing of refunds that arise from the end of year P35 paper returns, taxpayers and their agents should note that:

* A P35 refund can only be processed on the receipt of a valid claim. A valid claim should be made by entering the refund amount on the P35 declaration (line E) or by sending a claim to Revenue in writing for the amount of the refund due.
* If line E on the P35 declaration is not completed where the declared liability is less than the amount paid, Revenue will not accept that a valid claim has been made. In such cases, the taxpayer will receive a letter advising of a discrepancy in their account. It is important that if there is a refund due it should be claimed in writing at this stage.
* If a refund is not due and an amended return is required to balance the account, Revenue should be advised that an amended or supplementary return will be filed.

read more here

Information Note on Amended and Supplementary P35s

For those making changes on the P35 after filing the initial details, it is important to note the difference between an Amended P35 and a Supplementary P35, regardless of the filing method used - i.e. paper or electronic format (ROS).

* An Amended P35 should be filed when the employer wishes to adjust the PAYE/ PRSI details of employees who were already included on the original P35 return.
* A Supplementary P35 should be filed only when additional employees, who were not listed on the original P35, are included. Care should be taken when filing an amended or supplementary return on ROS to ensure that the correct option is selected.
* Supplementary P35's may be filed on paper by using the required P35L stationery and P35 declaration, which are also available from the Employers Helpline in Nenagh.

If you have any queries in connection with the content of this e-Brief, please contact Andrew Wiley at 069-24876.

Or you can contact P35 Overpayments Section by sending an e-mail to: p35processing at revenue.ie or telephone 069 - 24897.
Published on Wed 29 of Dec, 2010
eBrief No. 100/10 - European Union (Value-Added Tax) Regulations 2010 (S.I. 612 of 2010) - is now available on the Revenue website.

European Union (Value-Added Tax) Regulations 2010 (S.I. 612 of 2010)

The European Union (Value-Added Tax) Regulations 2010 (S.I. 612 of 2010) (PDF,64.1 KB) amend the Value-Added Tax Consolidation Act 2010 to provide for the transposition of three European Union Directives, which are required to be transposed into Irish law.

These regulations concern:
Transposition of the 2011 changes to the Place of Supply Rules

Article 3 of Directive 2008/8/EC introduces further changes to the place of supply rules for services, following on from the substantial changes introduced in January 2010. From 1 January 2011:

* The place of supply for B2B admissions to events, seminars etc is where the event is held.
* The place of supply of B2C admissions to activities such as fairs, sporting events etc is where the event takes place.
* The place of supply of B2B services relating to events etc will fall under the general B2B rule i.e. taxed where the customer is established.

An information leaflet will be issued in January to give further guidance on how this operates. The leaflet will take account of ongoing discussions at EU level to agree a common interpretation in each Member State to ensure that neither non-taxation nor double taxation arises.

Transposition of the Technical Directive

Council Directive 2009/162/EU amends various provisions relating to imports and supplies of gas through the natural gas distribution system, or electricity or heating and cooling energy through heating and cooling networks; the importation by, or supply of goods to, certain designated bodies under EU Protocol procedures and certain other international bodies; and tax deductibility on immovable property used for both taxable and private purposes. These provisions come into effect on 1 January.

Transposition of new refunds Directive

The Regulations also legislate for the exceptional extension agreed in October by the Council of Ministers in respect of claims for intra-Community VAT refunds for 2009. The time limit for the making of claims has been extended until 31 March 2011 from 30 September 2010.
Published on Wed 29 of Dec, 2010
eBrief No. 99/10 - Value-Added Tax Regulations 2010 (S.I. 639 of 2010)

The Revenue Commissioners have made Regulations (PDF,242 KB) under the Value-Added Tax Consolidation Act 2010 concerning the operation of VAT.

These Regulations are largely consolidated Regulations reflecting the structure of the Value-Added Tax Consolidation Act 2010. They update cross-references to the Act and take account of the repeal by the Act of obsolete or redundant provisions.

These Regulations also contain new measures in Regulations 10, 14, 15, 23 and 29 concerning:

* bad debt relief
* the treatment of replacement goods imported into the State
* the Retail Export Scheme
* time limits for the issue of documents where the reverse charge for construction services or the supply of greenhouse gas allowances apply
* conditions under which the intra-Community supply of goods may be zero-rated.

These Regulations come into effect on 1 January 2011.

A copy of the Regulations can be accessed on the Revenue website at: Tax Practitioners - Legislation - Statutory Instruments - 2010 or purchased from the Government Publications Sales Office.
Published on Wed 22 of Dec, 2010
Principal Contractors and their agents are reminded that the filing date for the 2010 RCT35 is 15th February 2011, with an extension to 23rd February 2011 for ROS filers. Blank Form RCT35 for 2010 are now being issued.

Full information about the RCT35, specimen RCT35 forms and important information about how to complete them, read the following eBrief from the Revenue Commissioners.
Published on Wed 15 of Dec, 2010
eBrief 96/2010: Employer Copy of Tax Credit Certificate

Employer’s copy of employees Tax Credit Certificates (P2Cs) will issue through the Revenue On-Line Service by the 15, December 2010. For Employers/Agents not registered for ROS, these certificates will be sent by post during the week commencing 13 December 2010.

Revenue is asking employers, and agents who carry out payroll functions on behalf of employers, to defer running their 2011 payroll until they receive the 2011 P2Cs to ensure that they make the correct payroll deductions from the first pay date in 2011.

Please refer to Revenue eBrief No. 90/10 for further information on Agents access to Client Employers’ Tax Credit Certificates (P2Cs).

The Revenue On-Line Service is the easiest and quickest way to meet your tax obligations.

Published on Wed 08 of Dec, 2010
Read about the Universal Social Charge Here

An employee earns €800 per week.

Their weekly deduction for Salary Sacrifice for the Travel Pass Scheme is €20

Their weekly deduction for employee superannuation is €40

Universal Social Charge calculation:
Gross pay €800
Less Salary Sacrifice for Travel Pass € 20
Universal Social Charge is applied to €780
193 x 2% = €3.86, 115 x 4% = €4.60, and 472 x 7% = €33.04
Total Universal Social Charge = €41.50
Note: the Universal Social Charge is applied before the employee superannuation is deducted.

PRSI calculation:
Gross pay €800
Less Salary Sacrifice for Travel Pass €20
Less employee superannuation € 40
PRSI is applied to €740 at the appropriate rate(s)

PAYE calculation:
Gross pay €800
Less Salary Sacrifice for Travel Pass €20
Less employee superannuation € 40
PAYE is applied to €740 at the appropriate rate(s)
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