Tax Returns for Directors 2005

Directors have been chargeable persons for the purposes of Self-Assessment since 1992/93. Revenue’s Statement of Practice, SP - IT/1/93, excluded non-proprietary directors (who were otherwise not a chargeable person and whose income had been subject to PAYE) from these self-assessment provisions. All proprietary directors remained chargeable persons and were required to submit a return of income by the return filing date. A proprietary director is a director of a company who is the beneficial owner of, or is able either directly or indirectly to control more than 15% of the ordinary share capital of the company. There is no change to this position as outlined in this Statement of Practice.

The purpose of this note is to advise practitioners that for the tax year 2005 and following years the Form 12 Directors will no longer be produced and all proprietary directors will be issued with a Form 11.

Directors, both proprietary and non-proprietary, who have previously been issued a Form 11 will continue to receive a Form 11.