Two issues involving the ROS 2011 Form CT1 have come to light.

1. Calculation error where there is manufacturing relief and excess deductions

The amount of manufacturing relief due is not calculating correctly where there are any of the following deductions: excess management expenses, excess deductions, excess case V capital allowances, excess non-trade charges.

Due to the limited number of cases affected by this issue, there is no planned release of a new version of this return. Companies or their agents submitting Forms CT1, which might be affected by this error, should advise their Revenue Office that there may be an adjustment required to the manufacturing relief. Revenue will amend these cases to ensure that the correct amount of manufacturing relief is granted.

2. Loss/Group relief on a value basis

When claiming group relief on a value basis, the amount of the relief to be claimed must be shown as an excess relief in the trade panel. The Form CT1 will automatically offset any group relief claimed in the trade panel against any other trade income in that panel before calculating any excess loss available on a value basis.

In certain circumstances, a company may not wish to use the group relief against other trading income, but may wish to use the excess of this relief only against other income. Where this situation arises, the following approach should be adopted. The group relief should not be claimed in the Relief on Value Basis section of the return; instead it should be claimed as Other Reliefs. The net amount of the value basis relief should be entered at Amount of Other Reliefs and a description “Group Relief on a Value Basis” entered in the Specify Details of Other Reliefs field. Note: it is important to restrict the loss relief to the net value of the relief due when entering it in this field. This issue will be resolved in the 2012 ROS Form CT1.

Source: Revenue Website www.revenue.ie. Copyright Acknowledged