Following enabling legislation in Finance Act 2012, Revenue opened consultations on the mandatory use of iXBRL technology to file accounts and computations. iXBRL is a technology, both comparable to, and compatible with, Internet technologies, which allows for the electronic “tagging” of items in the accounts. This enables electronic systems to more easily read and analyze data transmitted between them – in this instance between accounts preparation software and the Revenue ROS and Risk (REAP) systems.

CCAB-I responded to the Revenue consultation document, entitled Proposed implementation of electronic filing of Financial Statements and Tax Computations with Revenue using iXBRL in writing in April last. We have followed up the submission at subsequent meetings, and amplified some of the points in further correspondence. The second submission made by CCAB-I is reproduced on here.

Per the original consultation document, the iXBRL project was to extend not just to accounts, but to tax computations and returns both for Income Tax and Corporation Tax. Its use was to be mandatory for taxpayers handled by Large Cases Division by September 2013. Over the course of our discussions with Revenue, it has been clarified that the focus of the iXBRL project is to be accounts rather than on returns; the standard ROS system will continue to apply for Forms 11 and Form CT1 for the foreseeable future.

It is also intended that in so far as iXBRL usage becomes mandatory, it will be mandatory from October 2013 for companies in respect of filing dates on or afterwards. In effect, for the majority of corporate taxpayers, the first filing season for which iXBRL will be mandatory falls in 2014. These clarifications will assist LCD cases in preparing for the changeover by ensuring that the focus is on the accounts process. For most practical purposes, the changeover will first apply where the accounts year end date is in 2013. We understand that ROS facilities to accept iXBRL filings will be available towards the end of this year.

Having obtained the above clarifications, our representations focus will now be on ensuring that there are clear and fair checks and balances in place in relation to the iXBRL filing process. We are also anxious to ensure that the transition can take place with the minimum cost, risk and disruption to taxpayers and the firms that represent them. Revenue have asked us to invite firms to participate in a pilot trial of the iXBRL filing process. If this is of interest to you, please contact Brian Keegan, Director of Taxation with Chartered Accountants Ireland.