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.

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.

Posted on June 12, 2018 by Gerry Higgins

VAT Adjustment – Unpaid Consideration

Errors in the preparation and submission of VAT returns can be very expensive for businesses.   It is important that businesses review their VAT returns regularly and have sound internal procedures in place to ensure that VAT returns are completed correctly.

One common item that businesses overlook is the requirement to repay VAT reclaimed in respect of creditors outstanding for more than six months.

If within six months of the end of the VAT return in which the VAT was repaid, the invoice has not been repaid there is a requirement for the VAT to be repaid to Revenue.

As part of a Revenue aspect query / audit, Revenue will routinely review the creditors ledger to ensure that the appropriate adjustment has been made.  If the adjustment has not been made the VAT will be need to be repaid.  Interest on the late payment of VAT and a penalty may also be levied by Revenue.

What questions do you have?

We are happy to help. Please post your comment below or call Eamonn Madden, Tax Manager at Cooney Carey, on 01 677 9000. Alternatively, send him an email: emadden@cooneycarey.ie

To keep in touch, connect with us on LinkedIn.

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

Posted on May 22, 2018 by Eamonn Madden

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