TAX E-NEWS
Monthly Update
31-10-2013
Dear Client,
In order to ensure there is in place a clear and
streamlined engagement between Revenue on the
Welcome to our monthly tax newsletter designed
one hand and various other stakeholders on the
to keep you informed of the latest tax issues.
other such as the Practitioners and the Insolvency
Service of Ireland, Revenue have decided that the
We hope you enjoy reading the newsletter;
first point of contact for ALL queries in this area will
remember, we are here to help you so please
be the dedicated Insolvency Unit of the Collector
contact us if you need further information on any
Generals office in Limerick. This can be contacted
of the topics covered.
by secure email or by telephone on 061/488061.
Best wishes
Where an Approved Intermediary (AI) or Personal
DKC
Insolvency Practitioner (PIP) makes contact with
the Insolvency Unit in relation to a specific case,
REVENUE
GUIDELINES
FOR
INSOLVENCY
PRACTITIONERS
arrangements will be made by that Unit for the
relevant
Revenue
caseworker
to
discuss
the
specific tax issues arising with that Practitioner.
The Personal Insolvency Act 2012 introduces
The Unit will monitor progress on all cases from a
fundamental reforms to Irelands insolvency and
Revenue compliance perspective and will ensure
bankruptcy laws as it introduces three different
that statutory deadlines are met. However while it
types of debt resolution process including a Debt
may advise the Revenue caseworkers as to issues
Relief
Settlement
that may arise, it will be the caseworker in
arrangement ( DSA) and Personal Insolvency
consultation with his/her management team within
Arrangement (PIA).
the Revenue District that will decide whether
Notice
(DRN)
Debt
Revenue “opt in” or “opt out” of a debt settlement
This is a brief note to highlight the how Revenue
resolution process.
will expect Practitioners in this area to deal with
taxation maters that may arise in relation to
By “opting in” in a DRN case Revenue will be
these processes.
consenting to a Debt Relief Notice in relation to a
Revenue Debt. IN the case of a DSA or PIA, an opt
By way of
background it will be noted that
in will mean that Revenue are consenting to the
Revenue through the auspices of the Collector
inclusion
Generals office in Limerick have already well
settlement arrangement that may be formalised.
of
Revenue
debt
in
an
proposed
developed procedures and processes to deal with
taxpayers who either fall behind in submitting
Tax Returns and/or fail to settle any tax liabilities
as and when they become due for payment. This
can include allowing outstanding taxes to be
settled through a series of phased instalment
payments over time, the imposition of interest,
and debt recovery through enforcement etc.
www.dkc.ac | [email protected] | Unit 3, Harmony Court, Harmony Row, Dublin 2, Ireland | + 353 1 6311 400
TAX E-NEWS
Monthly Update
31-10-2013
Information Required by Revenue Caseworkers
It should be noted that a 70 day protective notice
period will be applied by Revenue in all cases so that
In the published guidance Revenue have helpfully
a
outlined the information they will require as a
enforcement action for 70 days from the date that
Revenue
caseworker
will
not
initiate
any
minimum when engaging in a process that involves
formal notification of a debtors intention to seek a
Revenue debt. It is stressed that if this information is
DRN etc is received.
not forthcoming Revenue will have no option but to
opt out of any relieving proposals that may be
Revenue have also stated that they will only
proposed.
consider any arrangement that provides for all
current taxes to be kept up to date as provided for
i.
Information required for Revenue to
in legislation. Where a Revenue audit is ongoing or
decide whether to opt in/out of process
indeed scheduled to commence in any case applying
for personal insolvency the AI/PIP should contact
a.
Name
address
PPS
number
and
confirmation of PIP/AI appointment
the Insolvency Unit which will then determine
internally within Revenue whether it is appropriate
to “opt in” while the audit is ongoing. If there is any
b.
All Tax Returns must be up to date
suspicion that there are undeclared assets/sources
of income Revenue will have no choice but to opt
c.
A
specified
prescribed
financial
out of any proposed arrangement.
statement must be prepared and in
the case of a DSA/PIA arrangement
It is understood that if Taxes are under Appeal
details of PIP fees must be included
Revenue will take the view that it has no option in
the short term but to opt out of any proposed
ii.
Additional information required
once
arrangement until that Appeal is concluded as it is
initial decision to “opt in” has been
only at that time that the tax can be accurately
made
quantified.
a.
Details and supporting schedule of
Assets
including
charges/liabilities
of
debt
arising
b.
Details
how
has
been
addressed to date
c.
Details of future projections/expected
gifts/ other income etc
d.
Where the Revenue debt exceeds
€20,000 details of any other debt
outside of the DSA/PIP process will
be required also
Please contact a member of our Tax Team if
you would like to discuss any of the issues
raised.
Contact Us: [email protected]
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www.dkc.ac | [email protected] | Unit 3, Harmony Court, Harmony Row, Dublin 2, Ireland | + 353 1 6311 400