Phase 2 – Revenue Communication

Corporate taxpayers are subject to phase 2 of mandatory iXBRL filing since 1^st October. We are aware that Revenue has issued communication to corporate taxpayers and their tax agents advising them of the mandatory phase 2.

Taxpayers filing corporation tax returns on or after 1 October 2014 in respect of accounting periods ending on or after 31 December 2013 must also file iXBRL financial statements. However, corporate taxpayers who satisfy three specific criteria will be excluded from phase 2 of mandatory iXBRL filing. A company meeting all of the following three criteria will be excluded:

• The balance sheet value of the company does not exceed €4.4 million;
• The amount of the turnover of the company does not exceed €8.8 million; and
• The average number of persons employed by the company does not exceed 50.

We have clarified with Revenue that the above exclusion also applies in the context of a branch. Therefore where the branch meets all three criteria; phase 2 of mandatory iXBRL filing does not apply.

Revenue issued an email to all corporate taxpayers and tax agents, excluding those dealt with by Revenue’s Large Cases Division, setting out the iXBRL requirements under Phase 2. eBrief No. 85/14 issued from Revenue with details of the email communication for phase 2.

We have been engaging with Revenue, and made representations, on the filing obligations of corporate taxpayers under phase 2. Following members’ feedback on the P&L a/c items, we have requested clarification from Revenue on the term “detailed Trading Profit & Loss A/C”. We will be engaging with Revenue on the publication of a FAQ on this matter.

Phase 1

Corporate taxpayers dealt with by Revenue’s Large Case Division are subject to phase 1 of mandatory iXBRL filing. This means that such corporate taxpayers must file iXBRL financial statements where they are filing corporate tax returns since 1 October 2013.

iXBRL Financial Statements must be filed within 21 days of the filing of the Form CT1 on Revenue Online Service (ROS) or after the due date for the return, whichever is later.

iXBRL Filing for Holding Companies

Revenue has published a revised FAQ dealing with the iXBRL filing requirements for Holding Companies. Publication of this revised FAQ follows protracted engagement between the Institute and Revenue, which included written representations.

The revised FAQ, published on the Revenue website, states that consolidated accounts in iXBRL format will be accepted by Revenue provided that these include:

• A holding Company only balance sheet and the related holding company only balance sheet disclosure notes, and
• Separate P&L account for the holding company containing, at a minimum, such level of information as would allow the chargeable profits of the entity to be assessed.

The FAQ also includes clarification on the level of detail in iXBRL format required by Revenue.

In eBrief No. 85/14 Revenue advise that Holding companies that have deferred filing their financial statements in iXBRL format pending confirmation from Revenue of their requirements, have 8 weeks from the issue of the eBrief (eBrief No. 85/14 published on 30th September 2014) to submit such financial statements in order to avoid the imposition of a penalty or other sanction.

Representations

We continue to consult with Revenue on iXBRL and, at the time of writing, some of the specific areas we are making representations on are:

• iXBRL filing requirements for non-Irish incorporated entities
• Revenue requirements for P&L a/c information in iXBRL format
• Clarification on the iXBRL requirements for section 110 companies

Revenue eBrief No. 85/14 is published on here of this issue of tax.point.

For more information on iXBRL visit our iXBRL centre at www.charteredaccountants.ie/iXBRL