Answer ... Corporation tax returns must be submitted within nine months of the end of the tax accounting period in order to avoid a surcharge (maximum of €63,485) or a restriction of 50% of losses claimed (maximum of €158,715).
Corporation tax payment dates are different for ‘large’ and ‘small’ companies. A small company is one whose corporation tax liability in the preceding period was less than €200,000.
For large companies, the first instalment of preliminary tax totalling 45% of the expected final tax liability, or 50% of the prior period liability, is due six months from the start of the tax accounting period.
The second instalment of preliminary tax is due 31 days before the end of the tax accounting period. This payment must bring the total paid up to 90% of the estimated liability for the period.
The balance of tax is due when the corporation tax return for the period is filed (ie, within nine months of the end of the tax accounting period).
Small companies are required only to pay one instalment of preliminary tax. This is due 31 days before the end of the tax accounting period
The company can choose to pay an amount of preliminary tax equal to 100% of the corporation tax liability for its immediately preceding period or 90% of the estimated liability for the current period, with the final instalment falling due when the corporation tax return is filed.
Answer ... Interest is due at a daily rate of 0.0219% on late payments or payments that are not made in full. The interest is calculated by multiplying the amount of tax a company has underpaid by the number of days the tax is late by the interest rate.
If the return is submitted after the deadline, the company will also have to pay a surcharge of:
- 5% of the tax due up to a maximum of €12,995 if filed within two months of the filing date; or
- 10% of the tax due up to a maximum of €63,485 if filed more than two months after the filing date.
If the return is submitted after the deadline and the company has no tax liability, there will be restrictions. Claims for excess capital allowance, loss relief or group relief will be restricted by reference to the length of the delay in filing.
Answer ... In line with international standards, Ireland has implemented the automatic exchange of information to contribute to the exchange of information regarding non-Irish resident taxpayers with the tax authorities in the taxpayer’s country of residence.
Regulations implementing country-by-country reporting have applied in Ireland since 1 January 2016. Groups with an Irish presence and turnover exceeding €750 million are required to generate reports which are then shared by the Revenue with relevant foreign tax authorities.
The US Foreign Account Tax Compliance Act and the Common Reporting Standard have both been implemented into Irish national law and financial account information supplied by Irish financial institutions will be shared with relevant foreign tax authorities.