Form 46G: When must the Form 46G be filed

Background

Revenue recently updated their manual on the Form 46G. The Form 46G is a return of certain payments (payments for services or copyright) made in the course of business which exceed €6,000 in aggregate in the period covered by the return.

Details required on Form 46G in relation to service provider

  • Full name
  • Address
  • Tax Reference
  • Payments/consideration given
  • Nature of consideration if not money
  • Nature of services/rights provided
  • Whether figures are VAT inclusive/exclusive

Payments not required to be returned on Form 46G

  • Payments aggregating to less then €6,000 in a return period
  • Payments from which income tax has been deducted
  • Payments by a principal contractor registered for Relevant Contracts Tax
  • Payments where goods exceeds 2/3 of the total charge
  • Payments to non-residents
  • Payments for essential services (electricity, gas and telephone)

When must the Form 46G be filed

For individuals and bodies of persons other than companies, a Form 46G is required in respect of payments up to 31 December each year or, if more convenient, up to the date of the accounts prepared for the business.

The Form 46G must be returned annually before 31 October following the relevant year.

For companies, a Form 46G (Company) must be returned not later than 9 months from the end of the accounting period.

Form 46G/Form 46G (Company) must be filed under Self Assessment provisions.

The Form 46G should be filed electronically using ROS.

Consequences of Non-filing Form 46G

A penalty of €3,000 can apply where no return is filed or an incorrect return is filed.

Tax clearance and repayments may be withheld.

It could lead to a Revenue Audit.

What questions do you have?

We are happy to help. Please post your comment below or contact Gerry Higgins, Tax Partner on 01 677 9000 or by email: ghiggins@cooneycarey.ie.

If this article helped you, please share it with other businesses.

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    Posted on June 14, 2018 by Gerry Higgins

    Local Property Tax

    Background

    The revaluation date for Local Property Tax (LPT) is 1 November 2019.

    Public Consultation

    The Minister for Finance announced a review of LPT IN Spring 2018 to include:

    • Basis for future review as property values change
    • Relationship between property price movements and tax liability
    • How to achieve stability in flow of tax
    • LPT exemptions and deferrals

    Issues in relation to LPT

    • Since LPT was introduced in 2013, property values have increased by 75%
    • There is need for more regular reviews of property valuations, tax rates and band structures
    • Should first time buyers in 2013 be still exempt from LPT
    • LPT should be a tax deductible expense for landlords
    • The cities (particularly Dublin) and the countryside property valuations
    • Should deduction be permitted for house mortgages

    Conclusion

    The 6 year gap in revaluing property is likely to lead to large increases in LPT. This suggests that valuations and tax rates should be reviewed on a more regular basis.

    There is no justification for not allowing LPT as an expense in calculating taxable rental income.

    What questions do you have?

    We are happy to help. Please post your comment below or contact Gerry Higgins, Tax Partner on 01 677 9000 or by email: ghiggins@cooneycarey.ie.

    If this article helped you, please share it with other businesses.

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      Posted on June 12, 2018 by Gerry Higgins

      Blockchain part 5 of 6 – How Do I Implement my First Blockchain?

      If you have read our previous blogs on Blockchain, you are probably now wondering what steps you and your business might undertake to incorporate Blockchain. Below are 6 steps to assist you in implementing Blockchain into your business:

      Step 1. Deciding if Blockchain is applicable to your Industry

      If you are uncertain how Blockchain can help your business, it can be useful to ask yourself the following questions:

      • Is my current system prone to errors due to manual input
      • Do I need to track transactions more efficiently.
      • Is my current system too complex.
      • Is my current system too costly.
      • Can a new network provide greater transparency.

      If any of the above answers are applicable to your business, Blockchain is likely to benefit your business.

      Step 2. Examining your Current Business Process

      By placing your current business process under scrutiny – you will be able to identify inefficiencies or areas that are prone to delay.

      Step 3. Determining How Blockchain Can Help

      After identifying inefficiencies in your business process – the next step is to identify how Blockchain can alleviate these inefficiencies. For example, if a lack of trust is causing friction in your business. Blockchain can assist by providing a shared ledger, thereby increasing transparency.

      Step 4. Is Blockchain Appropriate

      Before implementing Blockchain you will need establish if it can provide real value, could the process be achieved by using an alternative system.

      Step 5. Determining How Blockchain can Help You Achieve Your Goals

      Ask yourself what you want to achieve by implementing Blockchain. How can your business measure how affective its initial implementation has been.

      Step 6. Choosing the Appropriate Provider

      Consider who would be your most appropriate Blockchain provider, it might be beneficial to consider the following:

      • Do you have frequent exchanges with the same individual, cold these exchanges be automated to free up time and money.
      • Do you require a permissioned network.
      • Do you need to know your clients, for example to adhere to KYC (Know your client) AML (anti money laundering legislation)

      What questions do you have?

      We are happy to help. Please post your comment below or call Colin O’Brien, Corporate Finance Director at Cooney Carey, on 01 677 9000. Alternatively, send him an email: cobrien@cooneycarey.ie

      To keep in touch, connect with our friendly team on LinkedIn.

      If you found this article interesting, please share it with other businesses. 

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        Posted on June 6, 2018 by Colin O'Brien

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