Completion of Returns for cases with turnover in excess of e20 million

This e-Brief sets out guidelines for practitioners on the completion of Returns for cases with turnover in excess of €20 million. As these cases filed full accounts they were not obliged to make entries on the accounts menu in their Form 11 or CT 1 Return. This position is now changed.

Through TALC, Revenue has reached agreement with practitioners that all cases with turnover in excess of €20 million will now provide entries in a specific selection of fields from the accounts menus in their Returns.

In addition, LCD cases will continue to file full paper accounts. Other cases with turnover in excess of €20 million will file full accounts when requested.

All other cases must continue to complete all relevant data fields on the accounts menus on their Return, as heretofore.

The €20 million refers to Corporation Tax returns CT1 beginning with accounting periods commencing on or after 1st August 2007 and Income Tax returns Form 11 2006 filed on or after 1st September 2007.

The agreed fields are:

Item	CT1 2007 reference	Form 11 2006 reference
Sales/Receipts/Turnover	1.42	125
Gross Trading Profit	1.46	129
Salaries & Wages	1.47	130
Subcontractors (Construction Industry)	1.49	131
Shareholders Funds	1.66	N/A
Profit/Loss on Ordinary Activities
Before Tax	1.67/1.68	150/151

If paper returns are received, and these fields are not completed, the form will be returned to the practitioner or customer for completion.

Corporation Tax

Groups and/or companies with a turnover of greater than €20 million are only required to complete the five, or six where relevant, fields as detailed below. The chart below gives guidance on the definitions for these fields for Corporation Tax cases. Note that it is based on the format of accounts for conventional businesses. Industries of a specialized nature, specifically in the areas of Financial Services-Banking, Insurance, & Pensions, should contact the relevant business units in the Large Cases Division if in any doubt as to filing requirements.

Guidance chart Corporation Tax:

CT1(2007) Ref	Accounts Item	Definitions for Cases with Turnovers > €20m (including cases filing with Large Cases Division)
	Agreed Fields	Required
1.42	Sales/Receipts/ Turnover	As required by the schedule to the Companies Amendment Act 1986, Part 1, Profit & Loss A\C formats, format 1(1), format 2(1), format 3(b)(1), format 4(b)(1)
1.46	Gross Trading Profits	As is commonly understood under generally accepted accounting practice & as required for companies adopting Profit and Loss A\C format 1, Companies (Amendment Act) 1986
1.47	Salaries/Wages, Staff costs	As required by Paragraph 42, Part IV of Companies (Amendment) Act 1986
1.49	Sub-contractors	This relates to building, meat-processing and forestry businesses. Sub-contractors are those defined by Section 531 TCA 1997 and are commonly included in the expense schedules to the statutory accounts
1.66	Shareholders’ Funds	The aggregate of called up share capital and all reserves, excluding minority interests.
1.67	Profit on ordinary activities before taxation	As required to be disclosed in Profit and Loss Account or notes by Section 4(14) Companies (Amendment) Act 1986
1.68	Loss on ordinary activities before taxation	As required to be disclosed in Profit and Loss Account or notes by Section 4(14) Companies (Amendment) Act 1986

Income Tax

The data to be entered in the agreed fields for Income Tax will be the same as that required for any Form 11 being filed. The notes for guidance on completion of Form 11 apply and are reproduced in the chart for ease of reference.

Guidance chart Income Tax:

Form 11 2006 Ref	Accounts Item	Definitions for Cases with Turnovers > €20m (including cases filing with Large Cases Division)
	Agreed Fields	Required
125	Sales / Receipts / Turnover	This is gross trading income receivable excluding Government payments
129	Gross Trading Profits	This is the gross profit of the business after adjusting for opening and closing stocks and input costs
130	Salaries / Wages, Staff costs	This includes all staff remuneration (taxed and untaxed), staff training, redundancy payments, PRSI, pensions, etc. The owners wages should not be included but should be input in Drawings”
131	Sub-contractors	This relates to building, meat-processing and forestry businesses. Sub-contractors are those defined by Section 531 TCA 1997
150	Net Profit per Accounts	Excluding exempt income and related expenses
151	Net Loss per Accounts	Excluding exempt income and related expenses

2. Facsimile Returns:

Revenue eBrief 25/2005 announced the withdrawal of this facility.

Following representations from practitioners, through TALC, a transitional arrangement has been agreed to allow some additional time to make necessary adjustments.

Revenue will now accept facsimile versions of Corporation Tax returns CT1 2007 for accounting periods up to and including 31/7/2007.