Business Tax Registration

The purpose of this article is to highlight the need for a correctly completed tax registration form when applying for Tax Registration. The article deals with registration for business taxes, that is, Income Tax (self-assessment), Corporation Tax, Relevant Contracts Tax, VAT, and PREM (employer's liability to PAYE/PRSI) registrations.

The article identifies some of the issues that cause difficulty in Revenue's Central Registration Units and offers tips that practitioners can take to avoid these problems.

Tax Registration Forms

When submitting an application for a tax registration Revenue expects a fully completed Tax Registration Form. Applications for registration in any other format, e.g., letter, fax, etc. will not be accepted. There are a number of different registration forms, each catering for a specific category of taxpayer. You should ensure that you are using the correct form for the person who is registering.

Form TR1 - is completed by the following customer types to register for Income Tax (self-assessment), PAYE/PRSI (PREM), RCT & VAT:

• An individual or unincorporated body
• A partnership, trust or foreign business (Not a limited company - see Form TR2)
• A charity or voluntary body.

Form TR2 - is completed by a Company to register for Corporation Tax (CT), PAYE/PRSI (PREM), RCT & VAT.

Form PREM Reg - Employer (PAYE/PRSI) Registration Form - is completed for a PREM only registration application, e.g., where a person (including a partnership, company, etc) who is already registered for Income/Corporation Tax becomes an employer or where a PAYE customer employs a childminder, home carer, or domestic.

Income Tax Registration Form for Collection Agents acting on behalf of non-resident landlords - This form is only to be used to register a collection agent for a non-resident landlord for income tax.

Registration Form for voluntary non-profit making organisations - This form should only be used where a voluntary, non-profit making organisation wishes to register for tax for Tax Clearance purposes.

The full and accurate completion of the registration form will ensure a speedier processing of the application for tax registration. The form acts as a checklist, ensuring that no information is omitted from the application in error. Completed registration forms should be submitted to the Customer Registration Unit in the customer's Revenue District. In the past, applications for registration by letter only have not provided all relevant information, resulting in delays in the registration process. Letters can be misdirected away from the registration unit and may not get the priority treatment afforded registration forms. As mentioned above, application for tax registration on the basis of a letter/fax only will not be accepted.

Supplies of registration forms

All registration forms are available on www.revenue.ie under Forms/Registration Forms. Supplies of forms TR1, TR2, and PREM Reg. are also available from Revenue's Forms & Leaflets Service at LoCall 1890 306 706 or from any Revenue office. Old versions of registration forms (e.g., Form STR) should not be used, as these do not provide sufficient information to process the registration in all cases.

The registration forms for Collection Agents and for Voluntary Bodies are, due to their limited customer base, only available on www.revenue.ie. If you do not have access to the internet you can request your Revenue office to download a copy for you.

Where to submit the Registration Form

The completed application form should be sent to the correct Revenue office. This is the Revenue district for the area in which the customer resides, or, in the cases of a business, where it is managed and controlled (in general this is where the main business activity is carried on). Full contact details for all Revenue offices can be found on www.revenue.ie under Contact Details.

Allocation of Registration Numbers

One of the difficulties experienced in Revenue districts is that of missing or invalid PPS or CRO numbers. The position regarding the allocation of registration numbers is as follows:

An Individual must have a Personal Public Service Number (PPSN) to register. The PPSN is allocated by the Department of Social & Family Affairs.

A Company must be incorporated in the Companies Registration Office before it can register for Tax.

A Partnership, Trust, and Unincorporated Body - the registration number is allocated by the Revenue District at the time the case is registered.

A Foreign company exercising a trade in the State is obliged to register for VAT. The Revenue District allocates the registration number at the time the case is registered.

Declaration

The declaration on page one of the application form must be completed in all cases.

• The applicant who is seeking registration should sign the form
• In the case of a partnership the precedent acting partner should sign the form
• In the case of a company the company secretary or director should sign the form

Occasionally an agent may sign the form; however the agent must provide confirmation that they have been authorised by the applicant to sign the form. Where the agent signs the form, the signature must be that of an authorised official and not the name of the firm or practice.

Difficulties encountered in the Central Processing Units

Some of the recurring problems encountered by Revenue Districts in attempting to register a case are as follows.

• Application for registration by letter or fax
• Missing or invalid PPSN or CRO number
• Registration form not signed
• No turnover figure provided; the turnover figure should be provided in all cases. The turnover figure, or an estimated figure, is required for processing the application.
• No description of trading or business activity provided
• Vague description of trading or business activity
• No dates entered for commencement of registration
• Forms sent to the wrong district
• PPSN of directors/partners, and directors' shareholding not supplied.
• The section Property details for VAT Purposes not completed where a Property Development/Property rental registration required
• Bank details not supplied in the case of a VAT registration application.

Any of the above problems will cause delays with the registration. In most instances the registration cannot be processed without further information from the customer/tax practitioner.

How to ensure a speedier registration

Practitioners are reminded that in many instances delays in registration can be avoided if full and detailed information is provided at the time of application for registration. Unnecessary delays can be avoided if practitioners:

• Use the correct registration form - see relevant section above - and ensure that the form is fully completed; incomplete forms will be sent back for completion in full.
• Ensure that the form is correctly signed; if it signed by the agent, provide confirmation that the applicant has authorised the agent to do so.
• When registering either an individual or a company make sure you quote the PPSN or CRO number as appropriate.
• If there is anything 'unusual' in the registration or the business activity further information may be provided in a covering letter with the TR1/TR2
• Do not apply for the tax registration on the basis of a letter only.