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Deadline Dates
 Corporation
Tax
7 December 2005
Budget Day 2006. Anti-avoidance measures (if any) may take
effect from this date.
14 December 2005
Dividend withholding tax return filing and payment date
(for distributions made in November 2005).
21 December 2005
Due date for payment of preliminary tax for companies with
a financial year ended 31 January 2006 and due date for
payment of 2nd instalment of preliminary corporation tax
for companies with a financial year ended 30 June 2005.
21 December 2005
Last date for filing corporation tax return CT1
for companies with a financial year ending on 31 March 2005
with the Collector General’s Office.
Due date for balancing payments for the same period.
31 December 2005
Last date for filing third party payments return 46G for
companies with a financial year ending on 31 March 2005.
31 December 2005
Latest date for payment of dividends for the period
ended 30 June 2004 to avoid Sections 440 and 441 TCA97 surcharges
on investment/rental/professional services income arising
in that period (close companies only).
31 December 2005
Certificates for IFSC and Shannon companies are due to expire
on 31 December 2005. All trading income arising thereafter,
will be taxable at the standard rate of tax at 12.5%. Some
of the implications arising from the expiration of the IFSC
certificates are outlined below.
There are certain restrictions imposed by IFSC certificates
which will no longer apply once the certificates have expired.
Transactions with connected persons will no longer be required
to be conducted at arms length. There will no longer be
any restriction on the types of activities that a company
may engage in, which will facilitate expansion into other
types of business.
Apart from the reduced corporation tax rate, the main advantage
available to IFSC companies is that they can do business
with foreign companies irrespective of where those companies
were resident, with minimal withholding tax or interest
recharacterisation issues. Non-IFSC certified companies
conducting business with non-EU or non-treaty partner countries
are exposed to recharacterisation and withholding tax issues.
Companies losing their IFSC certificates will need to address
these issues.
Currently, it is possible to claim 100% accelerated capital
allowances on certain assets used for the purposes of an
IFSC or Shannon trade which qualifies for the 10% rate of
tax. These accelerated allowances will cease to be available
post 31 December 2005 when the IFSC and Shannon regimes
expire.
31 December 2005
Contributions made by employers to approved occupational
pension schemes are tax deductible on a payment basis. Companies
with 31 December year ends should review their position
to ensure minimal pension accruals/provisions at the year
end.
Charges on income (e.g., patent royalties and certain interest)
are also deductible on a paid basis. Trade interest accrued
on a liability between connected persons may also need to
be paid by 31 December 2005 to avoid a denial of the tax
deduction for that period.
31 December 2005
A two year time limit applies to many corporation
tax group relief and loss relief claims. Potential claims
for the period ending 31 December 2003 may need to be considered
prior to 31 December 2005. A similar time limit applies
to certain income tax claims.
31 December 2005
The time limit for claiming a repayment of tax is 4 years.
A claim for repayment of tax for the tax year 2001 must
be lodged with the Revenue by 31 December 2005.
31 December 2005
Every ‘paying agent’ is required to make an
annual return providing details of interest payments falling
within the ambit of the EU Savings Directive. The first
such return covers the period 1 July 2005 to 31 December
2005 and is required to be submitted by 31 March 2006.
1 January 2006
On 12 April 2005 a new double taxation agreement between
Ireland and Canada entered into force. The revised agreement
will apply from 1 January 2006.
The new treaty will cover transactions subjected to CGT
for the first time. In addition, new articles dealing with
dividends, interest and royalties generally provide for
lower withholding taxes than apply at present. On a less
positive note certain tax exemptions will be removed and
the tax credit available on Canadian dividends paid to Irish
individuals will be substantially reduced.
A tax treaty with Chile was signed in 2005. If ratification
procedures are completed in 2005, this treaty will also
be in force from 1 January 2006.
14 January 2006
Dividend withholding tax return filing and payment
date (for distributions made in December 2005).
21 January 2006
Due date for payment of preliminary tax for companies
with a financial year ended 28 February 2006 and due date
for payment of 2nd instalment of preliminary corporation
tax for companies with a financial year ended 31 July 2005.
21 January 2006
Last date for filing corporation tax return CT1
for companies with a financial year ending on 30 April 2005.
Due date for any balancing payment in respect of the same
accounting period.
31 January 2006
Last date for filing third party payments return
46G for companies with a financial year ending on 30 April
2005.
31 January 2006
Latest date for payment of dividends for the period ended
31 July 2004 to avoid Sections 440 and 441 TCA97 surcharges
on investment/rental/professional services income arising
in that period (close companies only).
31 January 2006
Transitional measures were introduced in Finance
Act 2005 to provide for companies' first-time adoption of
International Financial Reporting Standards (IFRS) or equivalent
Irish GAAP.
One of the transitional measures provided for special rules
re the first instalment of preliminary corporation tax for
the first accounting period for which relevant standards
are adopted. For example, for a company with a 31 December
2005 year end, unrealised gains and losses on financial
assets and liabilities arising in the period 1 November
2005 to 31 December 2005 may be disregarded in ascertaining
if the payment represents 72% of the tax due on 21 November
2005. However, any shortfall in the payment to bring it
up to 72% must be paid over to Revenue by 31 January 2006.
All other preliminary tax obligations must be met by 21
November 2005.
31 January 2006
If a company with a 31 December year end realises
chargeable gains in the period 22 November 2005 to 31 December
2005, i.e., gains arising after the due date for the first
instalment of preliminary tax, a ‘top-up’ facility
is available. No interest will be charged if the ‘top-up’
payment is made by 31 January 2006. The aggregate of the
payments, i.e., the first instalment of preliminary tax
plus the ‘top-up’ payment, must be at least
72% of the final tax liability for that period.
Income
Tax and Capital Gains Tax
7 December 2005
Budget Day 2006. Anti-avoidance measures (if any) may take
effect from this date.
31 December 2005
The Revenue Commissioners indicated in Tax Briefing Issue
60, that with effect from 31 December 2005, capital allowances
will no longer be available for capital expenditure incurred
on the construction of buildings or structures in caravan
parks (whether registered with Failte Ireland or not). Allowances
in respect of expenditure incurred before that date will
not be affected.
31 December 2005
End of the 2005 income tax year. Appropriate tax
shelters such as ‘Section 23’ property or film
investments must be acquired by this date to be effective
for 2005. Also, some exemptions and allowances are required
to be claimed in a specific tax year including claims for
artist exemption (Section 195 TCA 97) and tax relief for
expenditure on significant buildings (Section 482 TCA 97).
31 December 2005
Every individual is entitled to a small gains tax
exemption of €1,270 per annum. This exemption cannot
be transferred and is lost if not used by the end of the
tax year. The first €3,000 of the total value of gifts
received from any one individual in any tax year is exempt
from gift tax. Unused exemptions cannot be carried forward
to later years so the timing of gifts should be considered.
31 December 2005
An employees’ PRSI threshold of €44,180
applies for 2005. In view of this PRSI ‘holiday’
the timing of payments to employees earning over this cap
should be considered, particularly if it is anticipated
that employees will earn less than the 2006 cap (not yet
announced).
31 December 2005
Capital losses arising on or before 31 December
2005 may be offset against gains arising in 2005. Unused
capital losses may be carried forward, there is no provision
to carry capital losses back. Therefore, if capital gains
arise in 2005, it may be more advantageous to crystallise
losses in 2005 rather than in 2006.
31 December 2005
Under ‘margin of error’ provisions,
individuals may make income tax top up payments by 31 December
2005 in respect of 2004 and thereby avoid an interest liability
on underpayment of income tax (subject to certain parameters
and conditions).
1 January 2006
On 12 April 2005 a new double taxation agreement
between Ireland and Canada entered into force. The revised
agreement will apply from 1 January 2006.
The new treaty will cover transactions subjected to CGT
for the first time. In addition, new articles dealing with
dividends, interest and royalties generally provide for
lower withholding taxes than apply at present. On a less
positive note certain tax exemptions will be removed and
the tax credit available on Canadian dividends paid to Irish
individuals will be substantially reduced.
A tax treaty with Chile was signed in 2005. If ratification
procedures are completed in 2005, this treaty will also
be in force from 1 January 2006.
1 January 2006
With effect from 1 January 2006, ATM cards, Laser
cards and combined cards will be exempt from a second or
subsequent charge to stamp duty arising from the switching
of accounts within a financial institution or from one financial
institution to another, in the same year. (The change in
relation to credit cards and charge cards took effect from
2 April 2005).
31 January 2006
The payment of capital gains tax (CGT) arising
on disposals in the period 1 October 2005 to 31 December
2005 is due by 31 January 2006.
Indirect
Taxes
7 December 2005
Budget Day 2006.Anti-avoidance measures and changes
to excise duties (if any) may take effect from this date.
1 January 2006
A new Generalised System of Preferences (GSP) scheme
will come into operation on 1 January 2006. The GSP is a
system whereby the European Union (EU) grants preferential
treatment to eligible products which originate in one or
more of 174 developing countries, so that exports from developing
countries would be competitive in the EU. The new GSP scheme
will operate until 31 December 2008.
1 January 2006
With effect from 1 January 2006, provided certain
requirements are met, there will no longer be a requirement
to notify or seek prior permission from the Revenue when
undertaking electronic invoicing.
Stamp
Duty
31 December 2005
Stamp duty relief on the transfer of land to certain young
trained farmers is due to expire on 31 December 2005 (unless
renewed in Budget 2006).
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