We reported in tax.point last month Revenue's further consultation on the tax implications of receiverships. This consultation was based on a series of new proposals, derived at least in part from the points already made by Chartered Accountants Ireland and the other representative bodies within CCAB-I. While there is merit in aspects of these new proposals, there are some gaps and therefore CCAB-I responded to the invitation for further comment.

We have reiterated that reform of the tax legislation and guidance is vital to address the uncertainty in the tax treatment of receivership cases. The proposed approach will contribute to providing the certainty needed, however, we have reservations about a number of legislative provisions in the draft legislation and administrative matters.

The three key areas of concern highlighted in the submission are; the meaning of net receipts, practicalities of the refund mechanism and administration of the proposals. We request that such concerns are addressed by either guidance and/or legislation to achieve the certainty needed in receivership cases.

Our submission is published on here of this issue of tax.point. We are grateful to several accountants from our member firms that specialise in this difficult area for their contribution to the points made in the submission.

The Revenue's response and relevant supporting documents are available from the Department of Finance website.