Release of Form CT1 for accounting periods ending in 2015 and Revised Form CT1 for accounting periods ending in 2014; iXBRL filing obligations

The Corporation Tax Return for accounting periods ending in 2015 will be released over this weekend.

A revised Corporation Tax Return for accounting periods ending in 2014 is also being released. The main changes in each Return are to the “Extracts from Accounts” section and are in respect of iXBRL filing obligations. The effects of the changes are as follows:

• All filers are notified of the requirement to file iXBRL returns with the Form CT1.
• Filers will be assisted in determining if they are in a category obligated to file iXBRL returns.
• For those obligated to file an iXBRL return, clarity will be provided about the fully tagged content required in the iXBRL return.

The 2014 and 2015 Forms CT1 will contain details of the Phase 2 iXBRL exclusion criteria and make reference to the “Aggregate of Assets without deduction of liabilities” in the “Balance Sheet Total” criterion. Notwithstanding this, the Phase 2 transitional arrangements outlined below will apply.

Filers of 2014 and 2015 Forms CT1 should also note that limited data integrity checks will be carried out on the Form CT1 to determine if an iXBRL return should be filed. These will centre on the turnover, shareholder funds and employee details in addition to a check to establish if the case is dealt with in Revenue’s Large Cases Division.

Considering the limited nature of the online checks carried out by Revenue’s systems, it should be noted that a Form CT1 accepted by Revenue does not remove the obligation to file an iXBRL return. It remains the sole responsibility of the filer to ensure that there is no obligation to file an iXBRL return.

Additional iXBRL information

Changes to Phase 2 exclusion criteria from mandatory iXBRL filing:

Phase 2 of Revenue’s schedule for mandatory iXBRL filing was introduced on 1st October 2014 in respect of accounting periods ending on or after 31 December 2013. This extended iXBRL mandatory filing to Corporation Tax cases other than those dealt with in Revenue’s Large Cases Division. To be excluded from Phase 2 filing obligation, Corporation Tax filers have to meet all three of the following criteria:

• The balance sheet total 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.

The meaning of Balance Sheet Total has given rise to many queries and to allay confusion, Revenue is changing its meaning from “Total Net Assets” to “Aggregate of Assets without deduction of liabilities”. This brings the threshold of €4.4 million into line with the way it is applied by the Companies Registration Office. There are no changes to the other two criteria and all three will still have to be met to avail of exclusion from mandatory iXBRL filing under Phase 2.

As a result of this change, the following transitional arrangements will apply in respect of the Phase 2 “Balance Sheet Total” criterion:

1. No changes are required by Corporation Tax filers that used the ‘Total Net Assets’ test on Corporation Tax returns filed to date.
2. For the period from the date of this eBrief to 31st October 2015, Corporation Tax filers may use either the “Total Net Assets” test or “Aggregate of Assets without deduction of liabilities” test when determining if they are excluded from mandatory iXBRL filing under Phase 2.
3. From 1st November 2015, the “Aggregate of Assets without deduction of liabilities” is the only test that should be applied when considering if the balance sheet total of the company does not exceed €4.4 million.

Companies in Liquidation

For companies in liquidation, where there are no net assets for distribution, Revenue will accept that an iXBRL return need not be filed and the accounts extract on the Form CT1 should be fully completed instead. However, Revenue retains the right to request that an iXBRL return is filed in specific cases. Specific requests for filing the iXBRL return are more likely to be made where the company is not compliant in respect of Form CT1 obligations up to the date of liquidation.

Release of Form 46G (Company) for accounting periods ending in 2015

The ROS online and ROS offline Form 46G (Company) for 2015 is also being released this weekend. An updated version of the 46G Return Tool (spreadsheet) will be available shortly and a further eBrief will issue advising of this release. Customers may continue to use the existing 46G Return Tool. Requests for this spreadsheet and any queries in relation to the completion or uploading of this spreadsheet should continue to be mailed to 46gspreadsheet@revenue.ie.

Tax Clearance Certificate expiry dates

In line with recent changes introduced in the Finance Bill 2014, electronic Tax Clearance (eTC) will be introduced from 1st January 2016. In advance of this, Revenue wishes to advise that Tax Clearance Certificates issued from the 1st of April 2015 will have an expiry date of the 31st of December 2015.

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