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CT1 Filings – Accounts Menus

Following discussions with Revenue, we have now received clarifications on the figures to be included when completing mandatory accounts menus. The use of accounts menus is mandatory for CT returns for accounting periods ending on or after 1 August 2007.

The Revenue Guidance Note is reproduced at Section 2.02.

Chartered Accountants will recall that the original proposal was to make the use of accounts menus mandatory for all accounts ending on or after 1 January 2007. Following discussions at TALC, Revenue have recognised the systems difficulties this presented, and deferred the introduction of the mandatory use of accounts menus. ICAI TALC representatives also felt that the description of the required items on the accounts menus could give rise to ambiguity. As can be seen from the Guidance Note, Revenue have now confirmed that the figures required correspond directly with the line items on the set of accounts. ICAI understands that this Guidance Note has also been circulated within Revenue.

The transition from the use of accounts menus for businesses with a turnover of less than €20m to an all case approach will undoubtedly cause difficulties. However this development, representing as it does an effective phasing in of the move coupled with essential clarifications of what will be required, demonstrates some Revenue appreciation of what is involved for Chartered Accountants in the compliance process.

Revenue will argue that the use of accounts menus assists them in populating their REAP system, used to screen cases in the selection process for Revenue audit. Equally it should be noted that it extends the possibility of ROS filing to all cases irrespective of size. Both objectives are valid, particularly from a Revenue standpoint, but attaining universal e-filing to the detriment of the accuracy of the audit screening process would be counter productive for all concerned. Hopefully a reasonable balance has been arrived at with the approach now proposed.

Lastly the principles being established in relation to CT1 filings are applied to Form 11 filings, while acknowledging that the vast majority of cases affected will be incorporated businesses.