The deadline date for electronic filing of Local Property Tax returns is 28 May 2013.
In this video, Chartered Accountants Ireland Director of Taxation Brian Keegan explains how this is a self-assessment tax, where the obligation is on the individual to ensure information held by Revenue is correct. He also looks at the tax from the perspective of self-employed people and PAYE workers and talks about ways to file.
The Revenue Commissioners have released the following statement re Capital Acquisitions Tax and debt write off. Basically no CAT liability arises.
Section 5 of the Capital Acquisitions Tax Consolidation Act 2003 provides that a person is deemed to take a gift where, under or in consequence of any disposition, that person becomes beneficially entitled in possession, otherwise than on a death, to any benefit otherwise than for full consideration in money or money’s worth paid by such person.
By virtue of the definition of “disposition” in section 2 (1) CATCA 2003 the release, forfeiture, surrender or abandonment of any debt or benefit, or the failure to exercise a right may be subject to CAT in certain situations.
Where for bona fide commercial reasons, a financial institution enters into a debt restructuring, forgiveness or write-off arrangement with a customer, Revenue’s approach, subject to being satisfied as to the bona fides of the arrangement (which may be subject to Revenue audit or enquiry) is that the financial institution is not intent on making a gift of any sort to the mortgagor/debtor – and accordingly the mortgagor/debtor would not be subject to a CAT charge in respect of any such debt restructuring, forgiveness or write-off arrangement.
This approach will only apply in the above-mentioned circumstances. In particular, should any debt restructuring, forgiveness or write-off arrangement be undertaken for the purposes of the avoidance of tax, the treatment outlined above would not apply.
Revenue has advised that about 60,000 taxpayers will receive notification via ROS of their Local Property Tax (LPT) obligations. These are taxpayers who have an active ROS digital certificate. This would include taxpayers who may, for example, prepare their own VAT and/or PAYE/PRSI returns but have an adviser who deals with their income tax returns.
An interesting note from the Institute of Tax re an Appeals Commissoners decision on 12 March 2013.
“Appeal Commissioners Decision of 12/3/2013
As a result of a Tax Audit estimates on a re-grossed basis for PAYE/PRSI were made on a Company which had discharged third party liabilities of a Director. The Appeal Commissioner held that re-grossing was not appropriate and that PAYE/PRSI only applied to the amounts actually paid by the Company. The Revenue Commissioners have expressed dissatisfaction.”