Phase 3B of mandatory electronic filing will be introduced on 1 October 2011. During August Revenue issued letters to over 5,000 taxpayers, identified as Phase 3B mandatory electronic filers. Revenue will also send advisory copies of these letters to tax advisors together with a list of their Phase 3B clients.

The obligations under Phase 3 are introduced in two stages-Stage 1 (Phase 3A) was introduced on 1 June 2011 and Stage 2 (Phase 3B) will apply from 1 October 2011. Employers with more than 10 employees will be subject to Phase 3B of mandatory electronic filing. This means that such taxpayers, if not already subject to mandatory electronic filing, must make returns/payments, due on or after 1 October 2011, on-line.

The Tax Returns and Payments (Mandatory Electronic Filing and Payment of Tax) Regulations 2011 provides that returns and payments due on or after 1 October 2011 must be filed electronically by employers with more than 10 employees.

Further details on Phase 3B of mandatory electronic filing is set out in Revenue's eBrief No. 46/11 which is available at http://www.revenue.ie/en/practitioner/ebrief/2011/no-462011.html