Finance Act 2014: Key Corporate Tax Measures
|
|
- Bryce Hill
- 6 years ago
- Views:
Transcription
1 2014 Number 4 Finance Act 2014: Key Corporate Tax Measures 87 Finance Act 2014: Key Corporate Tax Measures Fiona Carney Senior Manager, PwC Introduction Finance Act 2014 was signed into law by the President on 23 December As anticipated, this Finance Act represents the most significant change in Irish corporate tax law in recent years, with the well-signalled changes to the corporate residence rules, coupled with the significant current (and proposed) enhancements to our intellectual property (IP) and research and development (R&D) offerings. This article considers these provisions, together with some other key corporation tax aspects of the Act. Research and Development Tax Credits: s26 The R&D tax credit regime previously operated on an incremental basis, meaning that the 25% tax credit was available on qualifying current-year expenditure only to the extent that it exceeded the qualifying R&D expenditure incurred in 2003 (known as the base year ). Section 26 FA 2014 provides for a complete removal of the base-year spend for the purposes of calculating the R&D tax credit available for accounting periods commencing on or after 1 January The section also includes a technical amendment to the provisions introduced in FA 2010 to provide flexibility to the base year where an R&D centre closes under certain specific circumstances. (This change impacts only on R&D tax claims made for accounting periods commencing before 1 January 2015.) The incremental basis had acted as a barrier to Ireland s attracting new R&D investment. The removal of the base year therefore represents the most significant enhancement made to the R&D tax credit regime to date. It should increase Ireland s cost competitiveness for R&D investment, particularly for long-standing companies that have been restricted by the incremental nature of the regime. This will allow such companies to re-establish themselves in Ireland as cost-effective R&D centres.
2 88 Finance Act 2014: Key Corporate Tax Measures Capital Allowances on Intangible Assets: s40 Section 40 FA 2014 introduces a number of enhancements to the existing regime for capital allowances on intangible assets. or indirectly and going concern in the context of the extension of the relief to customer lists. It will be interesting to see how this progresses. Firstly, s291a TCA 1997 ( Intangible Assets ) is amended as follows with effect for accounting periods beginning on or after 1 January 2015: The definition of specified intangible asset is extended to include customer lists. However, the acquisition of a customer list will qualify only to the extent that it is acquired otherwise than directly or indirectly in connection with the transfer of a business as a going concern. The cap on the aggregate capital allowance and related interest expense that can be claimed in any one accounting period has been increased from the current 80% of the related IP profits for the period to 100% of those profits. Secondly, s288 TCA 1997 ( Balancing Allowances and Balancing Charges ) is amended as respects any event as defined in sub-section (1) occurring on or after 23 October 2014 that gives rise to a balancing charge on a specified intangible asset. The amendments provide that: No balancing charge will arise where the event occurs more than 5 years after the beginning of the accounting period in which the asset was first acquired. (Previously, a clawback period of up to 15 years applied depending on when the expenditure was incurred.) Where the above event or any scheme or arrangement which includes that event results in a connected company incurring capital expenditure on the specified intangible asset and the capital allowances available to the acquirer would exceed the unclaimed capital allowances on the asset at the date of transfer, the capital allowances available to the acquirer are limited to those unclaimed capital allowances. The above measures are a welcome step forward in enhancing the Irish IP offering. However, the measures themselves are limited in their effectiveness. The increase in the cap on the tax deduction will enable many companies to access tax relief for qualifying spend on intangible assets over a shorter time period. There are concerns over the meaning and application of the terms directly Furthermore, there are some overall significant issues with the attractiveness of our current IP amortisation regime. The capital allowances will ultimately expire, making it difficult for companies to maintain a consistent effective tax rate on their IP profits in the longer term. It is hoped that the knowledge development box regime announced in the Budget will address these issues. Company Residence: s43 The Finance Act introduces amendments to the corporate tax residence rules contained in s23a TCA 1997 designed to address concerns about the double Irish structure. Section 40 FA 2014 introduces a number of enhancements to the existing regime for capital allowances on intangible assets. The amendments provide that an Irishincorporated company will be regarded as Irish tax resident. To ensure alignment with the treatment of company residence in double taxation agreements (DTAs), there is one exception to this incorporation rule. If, under the provisions of a DTA, an Irish-incorporated company is regarded as tax resident in another territory, the company will not be regarded as Irish tax resident. The amendments also clarify that a non Irish incorporated company that is managed and controlled in Ireland is not prevented from being regarded as Irish tax resident. The new provisions have effect from 1 January 2015 for companies incorporated on or after 1 January For companies incorporated before that date, the new provisions apply only from the earlier of either: 1 January 2021 or the date, after 1 January 2015, of a change in ownership of the company in circumstances where there is also a major change in the nature or conduct of the business of the company within the period that begins one year before the date of the change of ownership (or on 1 January 2015, whichever is later) and ends five years after that date. This means that all of the current corporate tax residence provisions contained in the legislation (including the stateless companies
3 2014 Number 4 Finance Act 2014: Key Corporate Tax Measures 89 provisions introduced in F(No. 2)A 2013) will continue to apply to companies incorporated before 1 January 2015 until 31 December 2020 at the latest. In the period to 31 December 2020, all groups will need to monitor carefully the corporate tax residence position of Irish-incorporated, non-resident companies that do not satisfy the exception contained in the new provisions. This includes, for example, considering the impact of any proposed mergers or acquisitions involving both a change in ownership and business changes/integration measures. Capital Gains Tax Degrouping Charge: s41 Section 623 TCA 1997 is amended to clarify the period in which tax becomes due and payable on a chargeable gain arising to a company that leaves a CGT group within 10 years of having acquired an asset from another company. Capital Allowances Energy-Efficient Assets: s38 Section 285A TCA 1997 provides for accelerated capital allowances for capital expenditure incurred on the provision of certain energy-efficient equipment for the purposes of a company s trade. The scheme effectively allows full tax relief for qualifying expenditure in the first year in which the asset qualifies for capital allowances. Section 623 TCA 1997 is amended to clarify the period in which tax becomes due and payable on a chargeable gain arising to a company that leaves a CGT group within 10 years of having acquired an asset from another company. The scheme was due to expire on 31 December Section 38 FA 2014 extends the scheme to 31 December In addition, the descriptions of the 10 classes of technology within which assets may qualify under the scheme are amended to keep pace with technological developments in the field. Both of these measures will be welcomed by suppliers and purchasers of green plant and machinery. Any tax payable on a chargeable gain arising on the earlier intragroup transfer (which was previously deferred) is treated as due and payable in respect of the accounting period in which the company leaves the group. The rate of tax applying to the disposal is the rate that applied at the time of the original intra-group transfer. Capital Gains Tax Closely Held Groups: s44 Section 590 TCA 1997 provides that, if a non Irish resident company (which would be a close company if it were Irish resident) disposes of certain assets, the gain arising can be attributed back to Irish-resident participators in the company, both individuals and companies. In the case of an asset comprising shares in another company, the substantial shareholdings relief (SSR) provisions contained in s626b TCA 1997 can apply to exempt the gain if the relevant conditions are met. Section 44 FA 2014 amends s626b TCA 1997 to prevent the SSR provisions from exempting the gain in the hands of a non-corporate participator. The position remains unchanged where the participator is a company. The amendment applies to disposals made on or after 18 November Capital Allowances Aviation Services: s33 Finance Act 2013 introduced provisions to grant industrial buildings allowances on capital expenditure incurred on the construction of buildings or structures employed in a trade that consists of the maintenance, repair or overhaul of commercial aircraft or the dismantling of commercial aircraft for the purpose of salvaging or recycling parts or materials. Section 33 FA 2014 provides that the allowances will be available only to enterprises that construct qualifying buildings in regionally assisted areas and comply with EU Regional Aid Guidelines. Certain information must also be provided to Revenue before making any claim for allowances. The commencement of the relief remains subject to Ministerial Order. Relief for Start-Up Companies: s39 Section 486C TCA 1997 provides for relief from corporation tax on trading income for new companies in the first three years of trading. The relief takes the form of a reduction in the corporation tax liability relating to the new trade (including chargeable gains on assets used in the trade) and is capped at the amount of the employer s PRSI contributions paid by the company in the relevant accounting
4 90 Finance Act 2014: Key Corporate Tax Measures period. The corporation tax liability relating to the new trade can reduce to nil where that liability does not exceed 40,000, subject to any restriction imposed by the cap. Marginal relief applies where the corporation tax liability is between 40,000 and 60,000. The relief previously applied only to trades set up and commenced by a new company in the period from 1 January 2009 to 31 December Section 39 FA 2014 extends this period to 31 December The Minister has also indicated that a review of the operation of the measure will take place in Taxation of Short-Term Leases of Plant and Machinery: s36 Section 80A TCA 1997 contains special provisions relating to the taxation of short-term leases of plant and machinery. Broadly, certain lessors can elect to claim tax relief on the cost of acquiring short-life assets in line with accounting depreciation rather than under the normal capital allowance provisions. Up to 2010, only finance lessors could benefit from s80a TCA Finance Act 2010 extended the section to operating lease portfolios. The extension was designed to apply to new operating lease portfolios, and a limitation applied to existing asset portfolios. In effect, the deduction available for existing portfolios could not exceed the capital allowances claimed in the period immediately before the extension of the regime. Section 36 FA 2014 removes this limitation for accounting periods ending on or after 1 January 2015, meaning that the amount deductible will instead be set at the accounting depreciation charge for the period. This should bring parity to the treatment of operating lessors established before and after Accounting Standards: s42 Section 42 FA 2014 amends Schedule 17A TCA This schedule provides transitional rules for tax purposes for companies that make certain changes to the accounting standards under which they prepare their accounts defined as moving from preparing accounts in accordance with standards other than relevant accounting standards to preparing accounts in accordance with relevant accounting standards. This currently covers the transition from Irish GAAP to IFRS. The rules seek to ensure that no items of trading income or deductible trading expenses that would be taken into account in computing profits in accordance with relevant accounting standards are either double-counted or fall entirely out of the charge to tax. The net transitional adjustment as computed is treated as a trading receipt or a deductible trading expense for tax purposes. The adjustment is required to be spread over a five-year period starting in the first accounting period in which the company begins to prepare its accounts in accordance with relevant accounting standards. Specific computational rules apply to bad debts and financial instruments. Revenue had previously confirmed the view that the definition of relevant accounting standards included FRS 101 and that the transitional rules covered a move from Irish GAAP to FRS 101. Section 42 FA 2014 is intended to amend the definition to cover FRS 102. However, there is an element of doubt over whether FRS 102 is in fact within the revised definition of relevant accounting standards, and further clarity is being sought from Revenue in this regard. While this is the clear intent of the amendment, whether it is achieved is open to debate. The amendment applies to any accounting period beginning on or after 1 January For companies that adopt FRS 102 from 2015 onward, the net transitional adjustment should therefore be taxable/deductible over five years. Questions have been raised regarding the precise application of the provisions for any companies that adopt FRS 102 in an earlier accounting period. The Guidance Notes issued by Revenue state that the transition rules contained in the Schedule will be applied administratively as appropriate to early adopters. Real Estate Investment Trusts: s29 Section 29 FA 2014 introduces a number of amendments to the Irish real estate investment trust (REIT) regime. Firstly, if chargeable assets are transferred to a REIT, this typically crystallises a CGT charge for the transferor. Section 29 FA 2014 amends s617 TCA 1997 to ensure that this charge arises for the transferor even where the transferor and the REIT are part of the same Irish CGT group. The amendment provides that a REIT or a member of a group REIT cannot be a transferee company for the purposes of CGT group relief for any disposals occurring on or after 23 October Secondly, the Finance Act introduces a DIRT exemption for deposits of a REIT or group REIT. This should ensure that the current exemption for profits from the investment of cash raised by the
5 2014 Number 4 Finance Act 2014: Key Corporate Tax Measures 91 issue of ordinary shares or the sale of rental properties for a period of 24 months operates as intended. Finally, the Finance Act provides that the principal REIT must notify Revenue on each occasion that a new company is added to the REIT group within 30 days of that date. Compliance and Administrative Matters The Finance Act introduces a number of amendments to compliance obligations and administrative matters contained in Parts 38 and 48 of TCA 1997, including the following. Record retention period Section 886 TCA 1997 requires taxpayers to keep certain records and other documentation for a specified time period, generally six years. The requirements apply to persons chargeable to tax under Schedule D or Schedule F in respect of any trade, activity or other source of income or chargeable to CGT in respect of chargeable gains. The records to be retained are those that are necessary to enable correct returns to be made on those profits or gains. Finance Act 2014 extends the retention period for records and documents in cases where an inquiry, investigation, appeal, judicial process or claim is ongoing. The records must be held until such time as the inquiry, investigation, appeal, judicial process or claim is concluded and the time limits for instigating further appeals or proceedings have expired. Tax clearance and e-filing The Finance Act provides for the introduction of an electronic tax clearance system to improve the efficiency and effectiveness of the existing tax clearance process. The tax compliance status of taxpayers may be reviewed by Revenue on an ongoing basis, and tax clearance certificates previously issued may be rescinded depending on the taxpayer s current tax compliance status. The new tax clearance procedures will come into operation by Ministerial Order. Amendments are also made to the e-filing and self-assessment provisions to bring them up to date with the current requirement to submit accounting information in electronic format when filing the tax return. Anti-Avoidance Provisions: s87 Section 87 FA 2014 amends the general anti-avoidance rules to (a) provide that the existing s811 and s811a TCA 1997 apply only to transactions commenced on or before 23 October 2014 and (b) to introduce s811c and s811d TCA 1997, applying to transactions commenced after that date. While a detailed analysis of the new provisions is outside of the scope of this article, there are a number of noteworthy aspects to the new provisions that merit comment. Transitional provisions are added to s811a TCA 1997 to provide a mini-amnesty for transactions entered into on or before 23 October Where a taxpayer makes a full disclosure to Revenue with full payment of tax and interest due on or before 30 June 2015, the taxpayer will not be subject to the surcharge provided for in sub-section (2) and any interest payable will be reduced by 20%. Finance Act 2014 extends the retention period for records and documents in cases where an inquiry, investigation, appeal, judicial process or claim is ongoing. The new s811c TCA 1997, applying to transactions commenced after 23 October 2014, is significantly different from the existing provisions in a number of respects. Under the existing provisions, it is necessary for a nominated officer to form the opinion that a transaction is a tax-avoidance transaction such that the tax advantage could be withdrawn. The new section permits any officer of the Revenue Commissioners to withdraw the tax advantage. The requirement for the officer to form the opinion is also scaled back to its being reasonable to consider that a transaction is a tax-avoidance transaction. No guidance has been provided by Revenue to date in relation to the interpretation of the term reasonable to consider. Although reasonableness tests are included in the anti-avoidance rules in other jurisdictions such as the UK and Canada, there are sufficient contrasts between these tests and the new Irish provisions to make it difficult to draw analogies. We await clarification on this point. Revenue Sanctions: s94 Section 1084 TCA 1997 ( Surcharge for Late Returns ) is amended to provide that a taxpayer will be liable to a surcharge where the taxpayer deliberately or carelessly submits a timely but incorrect return and does not rectify the error before the return filing deadline. However, this surcharge will not be applied where the taxpayer pays the full amount of any penalty due for making the incorrect return.
6 92 Finance Act 2014: Key Corporate Tax Measures The section is also amended to substitute the terms deliberately and carelessly for the terms fraudulently and negligently where relevant. This update brings the terms into line with those currently used in the penalty provisions. The amendments are effective for returns delivered on or after the date of the passing of the Finance Act. Conclusion The corporate tax measures introduced in the Finance Act are broadly positive for companies doing business in Ireland. The improvements to the tax incentives for IP and R&D activities demonstrate the Government s commitment to enhancing our offering in this area. Coupled with this, other non-corporate tax measures such as the extension of both the Special Assignee Relief Programme (SARP) and the Foreign Earnings Deduction (FED) should support Irish companies in attracting and maintaining senior talent. and should provide certainty to existing FDI investors. However, groups will need to monitor the corporate residence status of these companies carefully for the duration of the transitional period. Disappointment has been expressed by those in the private business sector that the Finance Act did not go further in addressing their wish list, including measures to assist with an increasing cost base, the ability to raise finance, and the ability to attract, retain and reward key talent. The Finance Act does contain some positive measures in these areas, including those outlined above, together with enhancements to the Employment and Investment Incentive and CGT entrepreneur relief. However, while the changes are welcome, there continue to be some drawbacks to the attractiveness of these incentives for investors. Read more on Finance Bill Tour Notes 2014; coming soon to FINAK Finance Act 2014 Explained The changes to the corporate residence provisions were well signalled. The transitional rules for existing companies are welcome
CONTENTS Overview Personal Tax Employment Taxes Business Tax Property & Construction Agriculture Indirect Taxes Other Measures
FINANCE BILL 2017 CONTENTS Overview 3 Personal Tax 4 Employment Taxes 5 Business Tax 6 Property & Construction 7 Agriculture 8 Indirect Taxes 9 Other Measures 10 OVERVIEW On 19 October, the Department
More informationFINANCE BILL 2016 HEADLINES
FINANCE BILL 2016 HEADLINES 20 OCTOBER 2016 Table of Contents INCOME TAX... 2 BUSINESS TAXATION... 3 PROPERTY... 3 SECTION 110 & PROPERTY FUNDS... 4 INDIRECT TAX... 5 CAPITAL ACQUISITION TAX... 6 AGRICULTURE
More informationIRELAND GLOBAL GUIDE TO M&A TAX: 2017 EDITION
IRELAND 1 IRELAND INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? A reduced rate of capital gains tax ( CGT ) of 20%
More informationPART 25A REAL ESTATE INVESTMENT TRUSTS. 705A Interpretation and application. 705B Conditions for notice under section 705E
PART 25A REAL ESTATE INVESTMENT TRUSTS 705A Interpretation and application 705B Conditions for notice under section 705E 705C Conditions regarding shares 705D Conditions regarding an accounting period
More information2015 Number 2 Taxation of Foreign-Currency Transactions in Companies
2015 Number 2 Taxation of Foreign-Currency Transactions in Companies 51 Fiona Carney Senior Manager, PwC Sinead Lew Manager, PwC Taxation of Foreign-Currency Transactions in Companies Introduction Operating
More informationtes for Guidance Taxes Consolidation Act 1997 Finance Act 2017 Edition - Part 24
Part 24 Taxation of Profits of Certain Mines and Petroleum Taxation CHAPTER 1 Taxation of profits of certain mines 670 Mine development allowance 671 Marginal coal mine allowance 672 Interpretation (sections
More informationInternational Tax Ireland Highlights 2018
International Tax Ireland Highlights 2018 Investment basics: Currency Euro (EUR) Foreign exchange control None, and no restrictions are imposed on the import or export of capital. Repatriation payments
More informationBUDGET Highlights
BUDGET 2018 Highlights Contents Page Overview 3 Business Tax 5 Personal Tax 5 Indirect Taxes 7 Capital Taxes 7 Overview Paschal Donohoe, Minister for Finance and Public Expenditure & Reform delivered his
More informationPaving the way
www.pwc.ie/financeact Paving the way Finance Act 2017 December 2017 2 Table of contents Welcome 4 Policy / International Outlook 8 Private Business / Individuals 10 Domestic and International Large Corporates
More informationPreparing for Pay and File 2017
2018 Number 02 69 Jackie Coughlan Director, Deloitte Introduction In the words of Benjamin Franklin, in this world, nothing is certain except death and taxes. And so, inevitably, another tax filing deadline
More informationBudget 2018 Newsletter
Budget 2018 Newsletter Income Tax Personal Taxes Budget 2018 made some minor changes in the area of personal taxes. We have set out below details of the changes to Income Tax and USC, to take effect from
More informationRELEASE NOTES. for Corporation Tax. Version 6.0 Build 3. ROI UK
RELEASE NOTES for Corporation Tax Version 6.0 Build 3 www.relate-software.com support@relate-software.com ROI +353 1 459 7800 UK +44 871 284 3446 CONTENTS Introduction... 3 Important changes made this
More informationFINANCE BILL 2016 LIST OF ITEMS PART 1 MEASURES ANNOUNCED IN THE BUDGET PART 2 FURTHER MEASURES INCLUDED IN THE FINANCE BILL
FINANCE BILL 2016 LIST OF ITEMS PART 1 MEASURES ANNOUNCED IN THE BUDGET PART 2 FURTHER MEASURES INCLUDED IN THE FINANCE BILL 1 PART 1 - MEASURES ANNOUNCED IN THE BUDGET INCOME TAX... 4 SECTIONS 2 TO 4
More informationTax on corporate lending and bond issues in Ireland: overview
GLOBAL GUIDE 2015/16 TAX ON TRANSACTIONS Tax on corporate lending and bond issues in Ireland: overview Jonathan Sheehan and Orlaith Kane Walkers Ireland global.practicallaw.com/7-381-2291 TAX AUTHORITIES
More informationTaxing Times. Finance Act & Current Tax Developments. kpmg.ie/financeact2017 #FinanceAct November Focus. Clarity.
Taxing Times Finance Act 2017 & Current Tax Developments kpmg.ie/financeact2017 #FinanceAct November 2017 Focus. Clarity. Insight KPMG is Ireland s leading Tax practice with over 600 tax professionals
More informationPaving the way
www.pwc.ie/financebill Paving the way Finance Bill 2017 October 2017 2 Table of contents Welcome 4 Policy / International Outlook 8 Private Business / Individuals 10 Domestic and International Large Corporates
More informationSummary of Pay & File system for Income Tax and CGT
Part 41A-01-03 Summary of Pay & File system for Income Tax and CGT under Part 41A of the TCA 1997 Part 41A-01-03 This document was last updated September 2017 1 Table of Contents 1 Obligation to file a
More informationTax Briefing No 09. This content is more than 5 years old. Where still relevant it has been incorporated. into a Tax and Duty Manual
Revenue Commissioners Tax Briefing No 09 2010 Intangible Assets Scheme under Section 291A Taxes Consolidation Act 1997 1. Introduction Section 43 of the Finance Act 2010 makes a number of amendments to
More informationHeadline Verdana Bold Finance Bill Event Wednesday, 5 December
Headline Verdana Bold Finance Bill Event Wednesday, 5 December Domestic Corporates & Entrepreneurs David Shanahan Tax Partner Introduction Global Global Brexit US Tax Reform BEPS EU State Aid cases Anti
More informationTaxing Times. Finance Bill & Current Tax Developments. kpmg.ie/financebill2017 #FinanceBill November Focus. Clarity.
Taxing Times Finance Bill 2017 & Current Tax Developments kpmg.ie/financebill2017 #FinanceBill November 2017 Focus. Clarity. Insight KPMG is Ireland s leading Tax practice with over 600 tax professionals
More informationTaxing Times. Finance Bill & Current Tax Developments. kpmg.ie/financebill2017 #FinanceBill October Focus. Clarity.
Taxing Times Finance Bill 2017 & Current Tax Developments kpmg.ie/financebill2017 #FinanceBill October 2017 Focus. Clarity. Insight KPMG is Ireland s leading Tax practice with over 600 tax professionals
More information[ ] Repayments and Offsets of Taxes and Duties. 1. Scheme of repayment Finance Act 2003
[37.00.30] Repayments and Offsets of Taxes and Duties 1. Scheme of repayment Finance Act 2003 The main features of the regime relating to tax repayments, interest and time limits arising from the scheme
More informationReport of the Office of the Revenue Commissioners. Analysis of Special Assignee Relief Programme
Report the Office the Revenue Commissioners 1. General Analysis Special Assignee Relief Programme 2015 1 The 2012 Finance Act introduced section 825C to the Taxes Consolidation Act 1997. This section,
More informationFinance Bill 2017 gives effect to the taxation-related measures announced on Budget Day which include:
Finance Bill 2017 Press Release - Notes to Editors: Measures announced on Budget Day: Finance Bill 2017 gives effect to the taxation-related measures announced on Budget Day which include: Income Tax Key
More informationPoints to Note for the Corporate Tax 2016 Filing Season and Year- End Compliance
89 Helen Hamilton Senior Tax Manager, BDO Points to Note for the Corporate Tax 2016 Filing Season and Year- End Compliance Introduction As busy practitioners, we need to step back every now and again and
More informationOffshore Funds: Taxation of Income and Gains from EU, EEA and OECD member states Part 27 / Chapters 2, 3 & 4
Offshore Funds: Taxation of Income and Gains from EU, EEA and OECD member states Part 27 / Chapters 2, 3 & 4 This document should be read in conjunction with Chapters 2, 3 and 4 of Part 27 TCA 1997, and
More informationTaxingTimes. Finance Bill & Current Tax Developments. October 2014
TaxingTimes Finance Bill 2014 & Current Tax Developments October 2014 kpmg.ie/financeact2014 KPMG is Ireland s leading Tax practice with over 500 tax professionals based in Dublin, Belfast, Cork and Galway.
More informationOn the map with Aircraft Leasing
On the map with Aircraft Leasing As we move into 2018, we explore four aircraft leasing regimes worldwide to assist your decision making process for new leasing opportunities. While Ireland will continue
More informationtes for Guidance Taxes Consolidation Act 1997 Finance Act 2017 Edition - Part 33
PART 33 ANTI-AVOIDANCE CHAPTER 1 Transfer of assets abroad 806 Charge to income tax on transfer of assets abroad 807 Deductions and reliefs in relation to income chargeable to income tax under section
More informationFinance Bill Deirdre Donaghy Department of Finance Government Buildings Merrion Street Upper Dublin 2 By
Deirdre Donaghy Department of Finance Government Buildings Merrion Street Upper Dublin 2 By Email deirdre.donaghy@finance.gov.ie Our Ref Your Ref 13 May 2015 Dear Ms Donaghy Finance Bill 2015 Matheson
More informationTax Accounting under FRS 102. Introduction. What s the Same?
80 Introduction On 14 March 2013, the Financial Reporting Council issued FRS 102, The Financial Reporting Standard Applicable in the UK and Republic of Ireland. This is the third standard in the complete
More informationBUDGET 2018 HEADLINES
BUDGET 2018 HEADLINES 10 OCTOBER 2017 Table of Contents BUSINESS TAXATION... 2 INCOME TAX... 2 PROPERTY... 4 STAMP DUTY... 4 INDIRECT TAX... 5 CAPITAL ACQUISITIONS TAX... 5 AGRICULTURE... 5 COMPLIANCE
More informationTax relief for new start-up companies. Part 15, Chapter 3
Tax relief for new start-up companies section 486C TCA 1997 Part 15, Chapter 3 This document should be read in conjunction with section 486C of the Taxes Consolidation Act 1997 Document last reviewed in
More informationTax Developments Promoting Growth of Indigenous Business and Attracting Foreign Direct Investment
Tax Developments Promoting Growth of Indigenous Business and Attracting Foreign Direct Investment Jackie Masterson Liam Kenny Overview of Presentation Tax Developments Promoting Growth for Indigenous Business
More informationChapter 3 - Unapproved Share Options
Chapter 3 - Unapproved Share Options This document should be read in conjunction with sections 128 and 128B of the Taxes Consolidation Act 1997 Document created April 2018 Table of Contents 3.1 Introduction...3
More informationtes for Guidance Taxes Consolidation Act 1997 Finance Act 2017 Edition - Part 20
Part 20 Companies Chargeable Gains CHAPTER 1 General 614 Capital distribution derived from chargeable gain of company: recovery of tax from shareholder 615 Company reconstruction or amalgamation: transfer
More informationTax and M&A: Supporting Recovery
2013 Number 2 Tax and M&A: Supporting Recovery 109 Tax and M&A: Supporting Recovery Mary Nyhan Nyhan Tax Advisers Introduction Corporate mergers and acquisitions (M&A) activity has shown signs of recovery
More informationThe rates of corporation tax are set for a financial year (FY). The financial year 2012 is the year beginning 1 April 2012 and ending 31 March 2013.
Corporation tax Introduction Companies pay corporation tax on their income and capital gains (generally known as chargeable gains ). Corporation tax also applies to most clubs, societies and associations,
More information[2.2.1] Corporation Tax - General Background
[2.2.1] Corporation Tax - General Background [Note: the contents of this Instruction is based on legislation in force up to and including Finance (No 2) Act 2013. Throughout this manual reference is made
More informationtes for Guidance Taxes Consolidation Act 1997 Finance Act 2017 Edition - Part 36
Part 36 Miscellaneous Special Provisions 836 Allowances for expenses of members of Oireachtas 837 Members of the clergy and ministers of religion 838 Special portfolio investment accounts 839 Limits to
More informationThe Home Carer Tax Credit has been increased from 1,200 to 1,500 per annum.
1 Income Tax Personal Taxes Budget 2019 made only minor changes in the area of personal taxes. We have set out below details of the changes to Income Tax and USC which will take effect from 1 January 2019.
More informationCAT CAPITAL ACQUISITIONS TAX
CAPITAL ACQUISITIONS TAX Charge to tax DISPONER AND DISPOSITION Capital Acquisitions Tax (CAT) applies to gratuitous benefits, for example, a gift (s 4) or an inheritance (s 9). The person who provides
More informationAUTUMN BUDGET 2017: FUTURE TAX CHANGES
AUTUMN BUDGET 2017: FUTURE TAX CHANGES The following briefing contains a summary of all tax policy measures which were announced yesterday at Autumn Budget 2017 for inclusion in a later Bill. Autumn Budget
More informationInvesting in Ireland. A dynamic, knowledge-based economy
Investing in Ireland A dynamic, knowledge-based economy 2017 Contents Section Page Foreword 03 A new landscape 04 Why invest in Ireland? 05 The Irish advantage 06 Tax advantages of Ireland 07 Taxation
More informationThe impact of IFRS 16 on the UK tax position
May 2018 Tax Services The impact of IFRS 16 on the UK tax position Understanding the impact of IFRS 16 International Financial Reporting Standard 16 Leases (IFRS 16) comes into force for annual periods
More informationInternational Tax United Kingdom Highlights 2019
International Tax United Kingdom Highlights 2019 Updated January 2019 Recent developments: For the latest tax developments relating to the UK, see Deloitte tax@hand. Investment basics: Currency Pound Sterling
More informationFinance Bill Click here to view table of contents
Finance Bill 2014 Click here to view table of contents 2 Contents Finance Bill published... 3 Personal taxation... 4 Business taxation... 6 Financial services... 8 Pensions... 9 Agri-taxation... 11 Property...
More informationForm CT1. Pay and File Corporation Tax Return (for accounting periods ending in 2004) Tax Reference Number
TAIN Form CT1 Pay and File Corporation Tax Return 2004 (for accounting periods ending in 2004) Please quote this number in all correspondence or when calling at your Revenue office Tax Reference Number
More informationTax Facts 2018 The essential guide to Irish tax
www.pwc.ie/taxfacts Tax Facts 218 The essential guide to Irish tax Tax Facts 218-1 Tax Facts 218 - Editor s page 2 3 Corporation tax 3 Corporation tax rates 3 Losses 3 Branch income 3 Capital Gains 3 Company
More informationBUDGET Tax Guide
BUDGET 2019 Tax Guide Contents Page Main Tax Credits & Allowances 2 Income Tax Bands / Tax on Savings 3 Mortgage Interest Relief 4 PRSI / Domicile Levy 5 Universal Social Charge 6 Property Relief Surcharge
More informationHigh Income Individuals Restriction Tax Year 2010 onwards
High Income Individuals Restriction Tax Year 2010 onwards Chapter 15.02A.05 Document last reviewed May 2017 Table of Contents 1. Introduction...3 2. How Does the Restriction Work?...3 3. To Whom Does the
More informationThe Dividend Merry-Go-Round
2016 Number 2 51 The Dividend Merry-Go-Round Paul Morris Associate Director, Twomey Moran Introduction One might be forgiven for assuming that the tax treatment applying to dividend income is quite uncomplicated:
More informationCYPRUS GLOBAL GUIDE TO M&A TAX: 2017 EDITION
CYPRUS 1 CYPRUS INTERNATIONAL DEVELOPMENTS 1. WHAT ARE RECENT TAX DEVELOPMENTS IN YOUR COUNTRY WHICH ARE RELEVANT FOR M&A DEALS AND PRIVATE EQUITY? The most recent developments which are relevant to M&A
More informationTax Developments Promoting Growth of Indigenous Business and Attracting Foreign Direct Investment. Mark Barrett
Tax Developments Promoting Growth of Indigenous Business and Attracting Foreign Direct Investment Mark Barrett Overview Part 1: Tax Developments Promoting Growth for Indigenous Business Part 2: Tax Developments
More informationInvesting in Ireland. A dynamic, knowledge-based economy
Investing in Ireland A dynamic, knowledge-based economy Guide to key tax incentives and regulations for the overseas investor - 2015 Contents Foreword 2 A new landscape 3 Why invest in Ireland? 4 Tax advantages
More informationI refer to our previous discussions in relation to the estate of Carol Deegan. We have outlined below our detailed analysis.
Answer-to-Question- 1 Dear [ ---- ] I refer to our previous discussions in relation to the estate of Carol Deegan. We have outlined below our detailed analysis. 1. Carol s residence and domicile: Residence
More informationRe: Taxation issues Dear Mary, I refer to our recent meeting and am writing to give my advice on the issues discussed.
Answers Professional Level Options Module, Paper P6 (IRL) Advanced Taxation (Irish) December 2017 Answers 1 Mary Yeats Mrs Mary Yeats Any street Any town Re: Taxation issues Dear Mary, I refer to our recent
More informationTax Issues for Outbound Investors. Marie Bradley Bradley Tax Consulting
Tax Issues for Outbound Investors Marie Bradley Bradley Tax Consulting Date: 20 th September 2011 Introduction Developing economies, rapid pace of growth Shift in world GDP towards emerging markets Large
More information[1997.] Taxes Consolidation Act, [No. 39.]
[1997.] Taxes Consolidation Act, 1997. [No. 39.] until the contrary is proved to have been signed by such inspector. CHAPTER 3 Capital gains tax penalties 1077. (1) Without prejudice to the generality
More informationEmployee share incentive schemes. kpmg.ie
Employee share incentive schemes kpmg.ie 1 Employee Share Incentive Schemes Contents Introduction 2 Unapproved share option schemes 3 Save As You Earn share option schemes 6 Approved profit sharing schemes
More informationINCOME TAX BILL, 2018
INCOME TAX BILL, 2018 ALERT ALGERIA BOTSWANA ETHIOPIA GUINEA KENYA MADAGASCAR MALAWI MAURITIUS MOROCCO MOZAMBIQUE NIGERIA RWANDA SUDAN TANZANIA UGANDA ZAMBIA REGIONAL OFFICE: UAE ASSOCIATE FIRM: SOUTH
More informationThe presentation discusses these developments and other topical issues under six headings:-
Introduction This morning s presentation is intended to cover, at a fairly high level, recent developments affecting the taxation of property. Certainly over the last number of years, there have been various
More informationConor O Brien Partner. Other positive measures include: The lowering of the income tax burden on low and middle earners.
Introduction TaxingTimes Budget 215 1 Conor O Brien The Minister for Finance introduced the 215 Budget (the Budget) on 14 October 214. Further detailed measures will be included in the Finance Bill to
More informationROS Form CT1 Corporation Tax return form 2018 for accounting periods ending in 2018
Tax and Duty Manual Part 38-02-13 ROS Form CT1 Corporation Tax return form 2018 for accounting periods ending in 2018 Part 38-02-13 This document was created May 2018 1 Table of Contents 1 Summary...4
More informationThe Inward Investment and International Taxation Review
The Inward Investment and International Taxation Review Second Edition Editor Tim Sanders Law Business Research Chapter 15 Ireland Peter Maher 1 I Introduction Ireland has for many years attracted a disproportionately
More informationIrish Government announces Budget 2016 and publishes update on international tax strategy
16 October 2015 EY Library Access both online and pdf versions of all EY Global Tax Alerts. Copy into your web browser: http://www.ey.com/gl/en/ Services/Tax/International- Tax/Tax-alert-library#date Irish
More informationCorporate & Personal Tax Opportunities
Corporate & Personal Tax Opportunities 29 NOVEMBER 2017 FIONA MURPHY TAX PARTNER Agenda Rewarding & incentivising staff Overview of Ireland s intangible regime Exit/Succession Planning Tax implications
More informationIMPORTANT ECONOMIC INCENTIVES Article by Liam Grimes, Director of Tax, KPMG, Moderator Professional 2 Advanced Taxation.
IMPORTANT ECONOMIC INCENTIVES Article by Liam Grimes, Director of Tax, KPMG, Moderator Professional 2 Advanced Taxation. The changes introduced in Finance (No. 2) Act 2008 to research and development tax
More informationChapter 4 Temporary Assignees. Release for employers from the obligation to operate the Irish PAYE system
Chapter 4 Temporary Assignees Release for employers from the obligation to operate the Irish PAYE system 4.1 General 4.1.1 Background When dealing with temporary assignees who hold non-irish employments,
More informationHigh Income Individuals Restriction Pre- 2010
High Income Individuals Restriction Pre- 2010 Document last reviewed July 2018 1 Table of Contents High Income Individuals Restriction Pre- 2010...1 1. Introduction...3 1.1 General outline of the restriction...3
More informationBudget October 2018 FIONA MURPHY TAX PARTNER RBK
Budget 2019 10 October 2018 FIONA MURPHY TAX PARTNER RBK Budget 2019 is about securing our future Backdrop - Positives > Good global growth forecasts Government revenues were up 5% on the same period last
More informationIreland Intellectual Property incentives
Ireland Intellectual Property incentives 25 November 2014 Peter Vale, Grant Thornton Topics to be covered Budget 2015 changes, including Double Irish Intangible Asset Regime post Budget 2015 R&D tax credit
More informationAcademic Year 2009/ Taxation. Republic of Ireland
Academic Year 2009/2010 www.accountingtechniciansireland.ie Taxation Republic of Ireland PART A CHAPTER 1: THE TAXATION SYSTEM Taxation is a major economic tool and the operation of an efficient tax system
More informationIncome Tax (Budget Amendment) Act 2004
Income Tax (Budget Amendment) Act 2004 FIJI ISLANDS INCOME TAX (BUDGET AMENDMENT) ACT 2004 ARRANGEMENT OF SECTIONS 1. Short title and commencement 2. Interpretation 3. Normal Tax 4. Non-resident miscellaneous
More informationCompany Financial Statements. Subsidiaries 175 Joint Ventures and Associates 181
Rolls-Royce Holdings plc Annual Report 115 Consolidated Company FINANCIAL STATEMENTS Consolidated Income Statement 116 Consolidated Statement of Comprehensive Income 117 Consolidated Balance Sheet 118
More informationSP1/11 Transfer pricing, mutual agreement procedure and arbitration
SP1/11 Transfer pricing, mutual agreement procedure and arbitration 1. This statement describes the UK s practice in relation to methods for reducing or preventing double taxation and supersedes Tax Bulletins
More informationDiverted Profits Tax Guidance. Guidance 10 December 2014
Diverted Profits Tax Guidance Guidance 10 December 2014 1 Contents Page Introduction Chapter 1 Chapter 2 Chapter 3 Introduction & Overview Application of Diverted Profits Tax Diverted Profits Tax - processes.
More informationAnalysis of New Law UK CORPORATE TAX REFORM. Nikol Davies *
70 Analysis of New Law UK CORPORATE TAX REFORM Nikol Davies * INTRODUCTION The long anticipated consultation document for corporate tax reform was published by the government on 29 November 2010. The document
More informationUnited Kingdom Tax Alert
International Tax United Kingdom Tax Alert 30 November 2010 Discussion document addresses CFC and other corporate tax reforms The U.K. government published a discussion document entitled, Corporate Tax
More information2. The R&D Credit regime Ireland offers, in addition to the standard 12.5% tax deduction, a tax credit of 25% on
Extegrity Exam4 > 18.3.19.0 Section All Page 1 of 15 Answer-to-Question-_1_ Ireland continues to have a competitive tax landscape and the legislature has been diligent to respond to the changing needs
More informationSpring Budget 2016 Briefing
Spring Budget 2016 Briefing 22 March 2016 Spring Budget 2016 Briefing Delivered by George Osborne on 16 March 2016 INTRODUCTION AND ECONOMIC BACKGROUND This was the third Budget within the space of 12
More informationChartered Accountants Registered Auditors Taxation Consultants Corporate Restructuring Insolvency Specialists Investment Business
Chartered Accountants Registered Auditors Taxation Consultants Corporate Restructuring Insolvency Specialists Investment Business 25 Stephen Street, Sligo, Ireland T: +353 71 91 61 747 F: +353 71 91 43
More informationKnowledge Development Box (KDB) Capital taxes Property initiatives Excise Entrepreneur Relief from CGT TAX REBATE FOR FIRST TIME BUYERS
BUDGET 2017 Financial Statement of The Minister for Finance 11th October 2016. This commentary is published by Chartered Accountants Ireland as a service to Chartered Accountants. ISSUED October 2016.
More informationTax Time Limits Know the crucial dates for you and your clients
Tax Time Limits Know the crucial dates for you and your clients Thursday 1 December 2011 Presented by Sasha Kerins 1 While every effort is made to ensure that the information outlined in these papers is
More information1. BACKGROUND TO THE CLAUSE
1. BACKGROUND TO THE CLAUSE 1.1. Clause 6 and Schedule 2 make provisions for a reporting requirement and payment on account regime where a capital gain is made on the disposal of a residential property
More informationCONTRACT SI2.ICNPROCE
CONTRACT SI2.ICNPROCE009493100 IMPLEMENTED BY FOR DEMOLIN, BRULARD, BARTHELEMY COMMISSION EUROPEENNE - HOCHE - - DG ENTREPRISE AND INDUSTRY - Study on Effects of Tax Systems on the Retention of Earnings
More informationor other website text.
Issue 56 - July 2004 TAX BRIEFING Introduction First Active plc. was acquired by the Royal Bank of Scotland in January 2004 and shareholders in First Active received a cash payment for their shareholding.
More informationBUDGET 2012 Taxation Measures
BUDGET Taxation O Hanlon Tax Limited 6 City Gate, Lower Bridge St., Dublin 8 T: 01 6040280 F: 01 6040281 E: info@ohanlontax.ie W: www.ohanlontax.ie Minister for Finance, Mr TD, published Budget on 06 December
More informationSimplifying capital gains taxation
Simplifying capital gains taxation IN THE 2007 PRE-BUDGET REPORT THE government indicated that it was committed to simplifying tax legislation, particularly in the areas of VAT, anti-avoidance and corporation
More informationSupreme Court Judgment in Droog: A Timely Decision. Introduction. John Cuddigan Tax Partner, Ronan Daly Jermyn
44 Supreme Court Judgment in Droog: A Timely Decision John Cuddigan Tax Partner, Ronan Daly Jermyn Introduction On 6 October 2016 the Supreme Court, through Clarke J, handed down the eagerly awaited decision
More informationFB.COM/SUPERWHIZZ4U Income Tax Amendment for the Assessment
FB.COM/SUPERWHIZZ4U Income Tax Amendment for the Assessment Year 2014-15 - SIPOY SATISH Highlights of Change in Direct Taxes in the Union Budget 2013 1. Rate of Income Tax for Individual a) Slab Rate Assessment
More informationEmployee share incentive schemes. kpmg.ie
Employee share incentive schemes kpmg.ie )' 1 Contents Introduction Unapproved share option schemes KEEP share option schemes Save As You Earn share option schemes Approved proft sharing schemes Restricted
More informationIrish Tax Institute Response to public consultation on the review of the corporation tax code
Irish Tax Institute Response to public consultation on the review of the corporation tax code Table of Contents About the Institute... 3 Introduction... 4 Summary of Recommendations... 5 Responses to consultation
More informationFinance Act Summary of the main measures including those affecting the farming sector.
Finance Act 2017 Summary of the main measures including those affecting the farming sector. Finance Act Update Published on 15 th January 2018 [Update on original Budget 2018 summary published on 10 th
More informationPAPER 2.06 IRELAND OPTION
THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2017 PAPER 2.06 IRELAND OPTION SUGGESTED SOLUTIONS The Estate of Carol Deegan Taxation Report for the Executors Part 1 Residence and Ordinary Residence
More informationProfessional Level Options Module Paper P6 (IRL) 1 John Field. Memorandum
Answers Professional Level Options Module Paper P6 (IRL) Advanced Taxation (Irish) December 2014 Answers 1 John Field To: Tax manager From Tax senior Re: John Field, taxation issues Date: 3 October 2013
More informationFarrelly & Scully, Virginia Road, Ballyjamesduff, Co. Cavan.
Farrelly & Scully, 2 Kennedy Road, Navan, Co. Meath Tel: (046) 9023934 Fax: (046) 9028479 E-mail: info@farrellyscully.com Farrelly & Scully, Virginia Road, Ballyjamesduff, Co. Cavan. Tel: (049) 8544454
More informationBudget Breakfast Briefing
Budget 2017 Breakfast Briefing 12 October 2016 Fergal Cahill Jean McCabe President Ennis Chamber Newsletter www.cahilltaxation.ie @cahilltaxation CTS Cahill Taxation Services /cahilltaxation Agenda Introduction
More informationCapital gains tax for business owners
Capital gains tax for business owners Introduction The capital gains tax (CGT) legislation favours business assets by providing a number of tax reliefs. The one with the widest scope is entrepreneurs relief,
More informationFundamentals Level Skills Module, Paper F6 (PKN)
Answers Fundamentals Level Skills Module, Paper F6 (PKN) Taxation (Pakistan) June 2012 Answers and Marking Scheme Notes: 1. The suggested answers provide detailed guidance on the subject for use as a study
More information