David Moran, Tax Associate Director with Grant Thornton is joined by Ken O’Connell, Tax Manager, with Grant Thornton Ireland.
David discusses the latest developments in the world of tax. Ken shares his insights into the Irish Aviation Industry including how the industry is bouncing back from the Covid-19 pandemic and how it is dealing with the Ukraine crisis.
On the 10th of May, Minister for Finance Paschal Donohoe TD announced the extension to the 9% VAT rate for the tourism and hospitality sector for a further six months, which will see the rate extended to the 28th of February 2023.
This extension will cover the same goods and services as the original measure; restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, and hairdressing, as well as certain printed matter such as brochures, leaflets, programmes and catalogues.
Revenue released an eBrief on the 17th of May outlining the tax treatment of the pandemic special recognition payment to be made to frontline healthcare workers.
The Government have committed that any payment under the Pandemic Special Recognition Payment scheme is exempt from income tax, USC and PRSI. Payments up to a maximum of €1,000 per individual will be exempt and the exemption only applies to payments made under the scheme.
Social Protection Minister Heather Humphreys announced on the 19th of May a series of measures designed to remove barriers facing social welfare customers who choose to accommodate people in their homes.
This new measure will allow social welfare recipients to receive up to €14,000 per annum free from income tax where accommodation is offered. The measure is in line with the Rent-a room relief as provided for under tax legislation.
In practice, this means that a social welfare customer will be able to rent out a room in their home for up to €14,000 per annum and will not see their means-tested social welfare payment impacted, including the Fuel Allowance or the Household Benefits Package.
Minister Humphreys also announced that this measure would be extended to those receiving the Living Alone Allowance noting that where a person living alone rents a room in their home, their Living Alone Allowance will not be impacted.
On the 11th of May, Revenue announced the publication of its Annual Report for 2021.
The report reflects an exceptional year for Revenue against the backdrop of a fundamentally changed trading environment between Ireland and Great Britain, and the continued significant economic and social disruptions associated with the Covid-19 pandemic, Revenue collected a record amount of tax and duty in 2021. Revenue also put all the necessary measures in place to effectively administer the changes to the Local Property Tax for the new valuation period which began on the 1st of November last and continued to play a significant role in the delivery of key Government supports to businesses as part of the national response to the Covid-19 pandemic.
Alongside the 2021 Annual Report, Revenue also published a number of other reports, including research reports on Corporation Tax, Income Tax, VAT and VRT; summaries of the 2021 National Random Sampling Programme for marked mineral oil products and the results of the Tobacco Products Research Survey 2021.
As noted on last month’s Podcast, Revenue’s new Code of Practice for Compliance Interventions came into effect on the 1st of May. The revised code outlines Revenue’s approach to compliance interventions and essentially categories their interventions into three levels.
The most notable update is the introduction to Risk Reviews, which are on all floors similar to a Revenue Audit; however, it focuses on a specific issue identified by Revenue.
Practitioners are recommending that a close eye be kept on any Compliance Intervention letter received from Revenue to first identify the Level of the intervention as this may affect any tax mitigation options available and also the date of the letter to ensure that tax payers have sufficient time to prepare for the intervention and / or request an extension to prepare a qualifying disclosure.
Please see below link to see Jim Kelly, Tax Director, discuss the changes in the Code of Practice and what tax payers should be considering.
On the 27th of April Revenue released an eBrief outlining changes made to their Tax and Duty Manual surrounding the taxation of crypto-asset transactions. The manual has been updated to provide clarity on the tax treatment of transactions involving crypto-assets, including through the provision of worked examples.
Ken O’Connell, Tax Manager with Grant Thornton Ireland, gives tax insights into the Irish Aircraft Leasing sector and how the Covid-19 pandemic and the war in Ukraine have impacted the industry, including: