Personal Tax Compliance & Planning
Revenue “Cancellation of Income Tax Registrations” Notice
Cancellation of Income Tax – Chargeable Person – Tax Agents and Tax Advisors
From 10th February 2023 the Revenue Commissioners are posting out letters to taxpayers who are currently registered for Income Tax but who have not submitted Income Tax Returns for years of assessment up to and including 2021. The individuals affected are those who are currently registered for IT but have not filed Form 11 Tax returns for years up to and including 2021. The Revenue Commissioners are now notifying them of their filing obligations as “chargeable persons” under the self-assessment rules. For further information on chargeable persons, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-41a/41a-01-01.pdf
The letters state:
“Based on a review of your Income Tax records, you have not filed any self-assessed Income Tax returns for years up to and including 2021.”
Taxpayers should start receiving such letters from 13th February onwards.
Please be aware that your Tax Agent won’t receive a copy of this notice.
What are you required to do?
In the event that the taxpayer is no longer deemed to be a “chargeable person” and, therefore, is no longer required to file an Income Tax Returns, he/she/they should cancel the Income Tax registration.
The term “chargeable person” applies to an individual who:
- Is self employed or
- Is a Director of an Irish company or
- Has other sources of income in addition to a PAYE salary.
An individual who is in receipt of PAYE income as well as non-PAYE income will not, however, be regarded as a “chargeable person” provided:
- the total gross income from non-PAYE sources is less than €30,000 and
- the net assessable income is less than €5,000 and
- the tax is collected by reducing his/her/their tax credits through the PAYE system.
A chargeable person is obliged to file an annual IT Return through the self-assessment system.
How can you cancel your IT registration?
This can be done online via ROS or by completing a Form TRCN1 which is available on the Revenue website.
What happens if you are considered to be a “Chargeable Person”?
If the taxpayer is considered a “chargeable person” but has not filed Income Tax Returns up to 2021, the letter is deemed to be a Final Reminder to file all outstanding income tax returns.
If the taxpayer does not file the outstanding IT Returns or cancel the registration within 21 days of the letter, Revenue will cease the IT registration without further notice.
Once the Income Tax registration is ceased, if the taxpayer wishes to re-register for IT he/she/they will be required to submit an online application via ROS.
Final Points
The Notice states:
“You should note that, where further information comes to Revenue’s attention that you were a chargeable person for any relevant tax year, Revenue reserves the right to reinstate your Income Tax registration.
The non-filing of a required tax return by chargeable persons can result in further contact from Revenue, including a follow-up compliance intervention. Non-filing of a return where required is also an offence for which a person can be prosecuted.”
For further information, please click: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-38/38-01-03c.pdf
If you have received a Cancellation of your Income Tax Registration Notice and you require assistance filing outstanding Income Tax Returns, please contact us at queries@accountsadvicecentre.ie
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so.. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
Form 46G – filed in addition to CT1 and Form 11 IT Return
Business Tax. Income Tax for Professionals. Personal Taxes for Farming businesses. Form 46G, Income Tax Return. Corporation Tax Return.
Traders (including farmers), professionals and other persons carrying on a business, as well as non-trading or non-profit making organisations and bodies of persons (including charitable organisations and statutory bodies) are required to file Forms 46G annually containing details of payments made by them to third parties for services provided. This form must be filed in addition to the Form 11 Income Tax Return and the CT1 Corporation Tax Return.
For individuals / persons (other than companies) the return should include payments made
- in the twelve month period to 31st December each year or
- up to the date on which accounts of the trade or profession are normally prepared
The Form 46G must be filed on or before 31st October of the following year.
For companies, the Form 46G should cover all relevant payments in an accounting period and be submitted no later than 9 months following the end of the relevant accounting period.
A non-compliant taxpayer (i.e. where a taxpayer fails to deliver a true and correct return) may be liable to a penalty of €3,000. In addition to which a tax clearance certificate may not be granted and tax refunds may be withheld.
Details of payments must be returned where the total amount paid to one individual or company in the year exceeds €6,000.
Relevant payments include:
- Payments for services provided in connection with the trade, profession, business etc.
- Payments for services provided in connection with the formation, acquisition, development or disposal of the trade or business
- Periodical or lump sum payments made in respect of any copyright.
Revenue provides a list of services that must be specifically disclosed. This list should be reviewed prior to filing a Form 46G on an annual basis.
The following categories of services were recently added:
- Call Centre/Customer Service
- Childcare
- Fitness, Sport & Leisure Services
- Fleet Management Services
- Health & Safety Services
- HR/Recruitment Services
- Internet & Information Technology related services (including website design or re-design, cloud services etc.)
- Landscaping/Gardening/Horticulture
- Marketing /Business Analysis
- Printing & Publishing
- Research
Certain payments are not required to be disclosed such as:
- Payments for essential services/utilities such as electricity, gas and telephone
- Payments from which income tax has been deducted
- Payments from which withholding tax has been deducted. This includes payments which are subject to PAYE, fees paid subject to withholding tax, payments subject to Relevant Contracts Tax (RCT), etc.
- Payments to non-residents
- Payments for services where the value of any goods provided as part of the service exceeds two thirds of the total charge
For further details, please follow the link:
Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.