Ireland's Revenue Introduces Phase 2 Of Mandatory E-Filing

by Jason Gorringe, Tax-News.com, London

29 January 2010

The Irish Revenue Commissioners released an eBrief on January 22, 2010, on mandatory electronic filing requirements affecting large businesses, under certain conditions, that did not fall under the initiative’s scope when it was first introduced in August 2008.

The mandatory e-filing regulations were first launched in 2008 following a public consultation process, and introduced requirements that Government Departments and Offices, State Bodies and Ireland’s largest companies should file and pay certain taxes and tax liabilities electronically.

Revenue decided to introduce these obligations in two phases. Government Departments, certain named Government Offices and companies whose tax affairs are dealt with by Large Cases Division came within Phase 1, with effect from January 1, 2009.

Revenue’s intention for Phase 2, now in force, was to include larger companies which are obliged to file audited accounts with the Companies Registration Office (CRO). The selection of the CRO audit exemption was largely based on the thresholds for turnover, assets and number of employees – which are the primary factors in determining a cut-off point between larger companies and other businesses. In view of difficulties encountered in identifying those companies which did not qualify for the CRO audit exemption, and satisfied the larger companies criteria, Revenue determined the case base for Phase 2 on the following criteria:

• turnover greater than EUR7.3m; and
• number of employees greater than 50.

Revenue has made direct contact with all companies which satisfied the turnover and employee numbers criteria included in Phase 2, which came into effect from January 1, 2010. The Revenue is aware that certain types of company may be required to submit audited accounts to the CRO without meeting the turnover and employee numbers criteria. According to the eBrief, these companies will not be required to file and pay electronically under Phase 2 of the Mandatory Electronic Filing Regulations.

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