Taxation News

Taxation News

Revenue eBrief No. 012/23 – Enhanced Reporting Requirements
The introduction in Finance Act 2022 of Section 897C of the TCA 1997 will require employers to report to Revenue details of certain payments made to employees and/or directors. The requirement to provide this information will commence in 2024.

Revenue is now seeking the engagement of Employers, Software Providers and Agents in the implementation of this reporting requirement. Further information, together with a link to a survey, has issued through their ROS inbox allowing stakeholders to provide information on their current processes that will assist in the design of this new reporting obligation.

Section 897C of the TCA 1997 –
Returns of Employees’ Emoluments, etc.
In this section, payments made to persons in respect of their employment and to the remuneration of persons in their employment shall be deemed to include references to:

  1. Any payments made to employed persons in respect of expenses.
  2. Any payments made on behalf of employed persons and not repaid, and
  3. Any payments made to the employees in a trade or business for services rendered in connection with the trade or business, whether the services were rendered in the course of their employment or not.

Every employer, when required to do so by notice from an inspector, shall within the time limited by the notice prepare and deliver to the inspector a return containing:

  1. Names and places of residence of all persons employed by that employer.
  2. Particulars of any car within the meaning of Section 121 made available to those persons by reason of that employment.
  1. Particulars of any preferential loan within the meaning of Section 122 made, released or written off by that employer in whole or in part and particulars of any interest released, written off or refunded by that employer in whole or in part and which was payable or paid on such loan.
  1. Particulars of any relevant scholarships within the meaning of Section 193 in relation to those persons, not being a payment made before the 6th Day of April 1998, in respect of a scholarship awarded before the 26th day of March, 1997.
  1. Particulars of the payments made to those persons in respect of that employment, except persons who are not employed in any other employment and whose remuneration in the employment for the year does not exceed £1,500.

Where an employer is a body corporate (including a company), that body corporate, as well as the secretary or other officer performing the duties of secretary to the body corporate, shall be liable to a penalty for failure to deliver a return under this section.

Revenue publishes headline results for 2022
Revenue published preliminary results for 2022 including tax and duty collected, details of assistance provided under critical government support schemes, services provided to customers, timely compliance rates and yield from a range of compliance and enforcement interventions.

Revenue collected €82.2 billion in taxes and duties for the Exchequer in 2022 an increase of some €14.7 billion or 21.5% on 2021. In addition, Revenue collected over €22.3 billion on behalf of other Departments, Agencies and EU Member States.

The unprecedented Exchequer receipts are underpinned by continued high levels of voluntary timely compliance, notwithstanding the challenging circumstances in which many taxpayers found themselves. Revenue acknowledge the cooperation of businesses, individual taxpayers, and tax practitioners.

During 2022 Revenue continued to evolve their compliance approach with the launch of a new Compliance Intervention Framework to underpin support for voluntary compliance, non-compliance and risk management.

427,000 audit and compliance interventions were completed during 2022 which yielded €813 million.

Revenue also secured 9 criminal convictions for serious tax evasion and fraud, published 53 tax settlements in the List of Tax Defaulters and settled 104 tax avoidance cases yielding €16.1 million.

The identification, targeting and disruption of shadow economy and other illegal activity continues to be a key focus for Revenue.