Mandatory Electronic Filing and Payment of Tax - New Regulations made

The Revenue Commissioners have recently made new Regulations entitled Tax Returns and Payments (Mandatory Electronic Filing and Payment of Tax) Regulations 2008 (S.I. No. 341 of 2008). These Regulations have been made under the provisions of section 917EA of the Taxes Consolidation Act 1997 (No. 39 of 1997). The making of these Regulations followed a public consultation process which concluded earlier this year.

The Regulations provide for mandatory electronic filing and paying of certain tax returns and tax liabilities by Government Departments and Offices, State Bodies and larger companies.

These obligations are being introduced in 2 phases. Government Departments, certain named Government Offices and companies, and certain State bodies whose tax affairs are dealt with by the Large Cases Division of the Revenue Commissioners come within Phase 1, with effect from 1 January 2009. All other State agencies and other companies which are obliged under the Companies Act to produce audited accounts come within Phase 2, with effect from 1 January 2010. Details of the persons to whom the Regulations apply are set out in Schedules 1 and 2 to the Regulations.

The tax returns and related tax liabilities covered by the Regulations are listed in Appendix 1 to this e-Brief.

Under the Regulations, the Revenue Commissioners may exclude a person from the obligation to pay and file electronically if they are satisfied that the person does not have the capacity to do so. In this context “capacity” is defined to mean access to the requisite technology, both hardware and software. A person may appeal a decision not to exclude them to the Appeal Commissioners.

Finally, provision is made to determine the time at which payments and repayments made by electronic means are to be taken as having been made.

Full details of the provisions are contained in the new Regulations.

The question of a generally available incentive to e-file/e-pay, as mentioned in the consultation document issued by Revenue last April, will be considered further in the context of Budget 2009.

Revenue already offers customers a wide range of contacts for ROS-related queries and will be happy to make their expertise available to businesses and agents requiring help with the transition to mandatory e-filing and payment. Details of the various contact points and means of communicating with Revenue on ROS-related issues are set out in Appendix 2 to this e-Brief.