FAQ

IRELAND

URL-1: https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-41a/41a-03-01.pdf

  1. Introduction

1.1. Corporation Tax – change in legislation:

Section 884 of the Taxes Consolidation Act 1997 extends the definition of a Corporation Tax return to encompass Financial Statements. This, coupled with the existing e-filing legislation,(1) establishes a statutory basis for the mandatory submission of electronic Financial Statements(2) as part of the tax return.

All companies that are required to prepare accounts under the Companies Act 2014 must submit their Financial Statements in iXBRL format to Revenue. However, Revenue has progressively mandated the submission of Financial Statements in iXBRL format on a phased basis for Corporation Tax filers. Sections 1.3 and 3 below explain in further detail who is affected by the requirements.

Further detail on the relevant legislative provisions is available in Appendix I of this document.

1.2. Why iXBRL?

Financial Statements contain key data needed for the purposes of assessing possible tax risks. The ability to accept Financial Statements in machine-readable format via ROS greatly enriches the data set available to Revenue for the purposes of risk analysis. The electronic data received allows Revenue to:

  1. a) Compare key accounting ratios across companies;
  2. b) Automatically prepare company profiles;
  3. c) Automatically generate statistical information for management purposes;
  4. d) Perform basic audit checks / reconciliations (e.g. reconciling loss relief/claims within a group); and
  5. e) Develop predictive analytical models to identify tax risk.

In addition, electronic Financial Statements will be available to help caseworkers prepare for audits and other Revenue compliance interventions.

(1)https://www.revenue.ie/en/online-services/support/help-guides/ros/mandatory-efiling.aspx

(2) Mandatory filing of Financial Statements is being phased in. Further details are set out in Part

1.3. Who is affected?

The obligation to file electronic Financial Statements was introduced on a phased basis. All Corporation Tax payers meeting the Phase I or Phase II criteria (outlined in Part 2.1 below) are affected by the changes. These include:

  • Irish Tax Resident Companies
  • Parents and Subsidiaries
  • Branches/Agencies of Non-Resident Companies
  • Companies not bound by the Companies Acts Inactive companies and companies in liquidation may not be required to file electronic Financial Statements with their Form CT1. However, in exceptional circumstances, Revenue retains the right to request electronic Financial Statements from such companies. The practical means of applying for these waivers are described in Parts 1.3.1, 1.3.2, 1.3.3 and 3 below.

1.3.1. Companies in liquidation

In general, it will be for Revenue Operational Branches to decide whether iXBRL Financial Statements in liquidation cases are required in addition to the Form CT1. The decisionmaking process in this regard should be the same as is currently applied in waiving the obligation to file a Form CT1 electronically. Revenue will apply the following where a Form CT1 is filed:

Companies in liquidation (not a voluntary liquidation)

For companies in liquidation, where there are no net assets for distribution, Revenue will accept that an iXBRL return need not be filed and the “Extracts from Accounts” on the Form CT1 should be fully completed instead.

However, Revenue retains the right to request that an iXBRL return is filed in specific cases. Specific requests for filing the iXBRL return are more likely to be made where the company is not compliant in respect of Form CT1 obligations up to the date of liquidation.

Companies in liquidation with no net assets for distribution should select Option 5 on the Form CT1; see Part 3 for further information.

Voluntary liquidations

For companies in voluntary liquidation, where the net assets for distribution do not exceed €25,000, and provided that all obligations under company law and all tax related requirements have been fulfilled up to the date of liquidation, applications to waive the iXBRL filing obligation may be made on a case-by-case basis to the relevant Branch Manager. Where the application is accepted, the waiver of the obligation to file the iXBRL return will be noted on Revenue’s systems. Applications for a waiver should be made via MyEnquiries – please select the “Corporation Tax” and “iXBRL” drop-down categories.

It should be noted that this applies to both the pre-liquidation and liquidation periods.

1.3.2. Inactive companies

At present all companies that are registered in Ireland have an obligation under the Companies Act 2014 (previously Companies Act 1963) to prepare and make out accounts. Revenue is willing to waive the obligation to file Financial Statements in iXBRL format where a company is inactive.

Revenue will classify a company “inactive” where there is no activity in the accounting period. It is considered that there is no activity in the accounting period and hence a company is not required to submit accounts in iXBRL format where the following conditions are met:

  1. No income or expenses on the Statement of Profit or Loss (annual CRO and audit fees can be ignored); and
  2. A Statement of Financial Position / Balance Sheet movement of less than EUR500, except in the first year after the company becomes inactive where it is paying off its trade creditors and has not been previously obliged to file Financial Statements in iXBRL format.

Inactive companies may select an option on the iXBRL page on the Form CT1 as follows:

‘The company is inactive and there is no income or expenses on the Profit and Loss account and there is a balance sheet movement of less than €500.’

Where this option is selected on the Form CT1, it will not be necessary to contact the local Revenue Office. It should be noted that companies who are in Revenue’s Large Cases Division (LCD) may also avail of this waiver.

1.3.3. Companies that have applied for voluntary strike-off

If a company has ceased to trade, or has never traded, and has no outstanding creditors, it can request that the Registrar strike off the company. Companies in this situation whose tax affairs are dealt with in Revenue’s Large Corporates Division (LCD) are obliged to submit a Detailed Profit and Loss account and Statement of Financial Position/Balance Sheet in iXBRL format. They should do this by selecting “Option 2” on the Form CT1:

Option 2: My tax affairs are dealt with in Revenue’s large corporate division or I am not excluded from filing financial statements in iXBRL format under options 3,4 or 5 below:

Figure 1 Option 2 on the Form CT1

Next, they should tick the following box on the “Company Category” panel and provide a Detailed Profit and Loss account and Statement of Financial Position/Balance Sheet in iXBRL format:

Form CT1 Filer Company Category

Auditors Report

Directors Report

DPL*

Balance Sheet

Disclosure Notes

Tax resident in Ireland – not required to prepare and publish financial statements under legislation in country of incorporation or in Ireland.

 

 

Yes

Yes

 

 

All other companies that have applied for voluntary strike-off may avail of a waiver from iXBRL filing by selecting Option 3 on the Form CT1:

Option 3 – My tax affairs are not dealt with in revenue’s large corporate Division and mandated under Phase II to file financial statements in iXBRL format because each of the following three criteria apply to me and I am claiming an exclusion

–  the statement of Financial Position/ Balance Sheet total (aggregate of assets without deduction of liabilities) of the company does not exceed 4.4 Million Euro and

– the amount of the turnover of the company does not exceed 8.8 million euro and

– The average number of persons employed by the company calculated in accordance with Sec. 317 of the Companies Act, 2014 does not exceed 50 

Figure 2 Option 3 on the Form CT1

1.4. The format of electronic Financial Statements

Revenue has adopted the internationally recognised iXBRL standard for accepting electronic Financial Statements. XBRL stands for eXtensible Business Reporting Language. This is a language that allows the presentation of financial information in a computer-readable format. This is achieved by tagging each piece of financial information with a label that identifies it in terms of standard accounting or tax concepts. The XBRL “language” is interpreted through “taxonomies”, which are essentially dictionaries that identify the meaning of each tag.

Standard XBRL is presented as a series of tags and numbers. iXBRL, or inline XBRL, is a more recent version of the language, which allows financial information to be presented in a format that is both human-readable and machine-readable. This is achieved by presenting the data (e.g. Financial Statements) in a normal document format but with XBRL “tags” embedded in the soft copy document.

It should be noted that iXBRL does not change accounting standards. It is simply a language for transmitting information that accurately reflects data reported under GAAP and IFRS.

Financial Statements in iXBRL format may be submitted in the Irish language through Revenue’s On-Line Service (ROS), which may be accessed and operated through Irish or English. However, it should be noted that the iXBRL taxonomies which Revenue will accept have been developed in English.

Financial Statements must be submitted in iXBRL format; other formats, such as PDF or Word documents, are not acceptable.

At present, tax computations cannot be submitted in iXBRL format.

The following material is either exempt from or not required to be published under the Freedom of Information Act 2014. […]

 

1.5. Tagging

Tagging involves the application of computer-readable ‘tags’ to business data. This enables the data to be processed and analysed automatically by software. For example, ‘tags’ allow items of data such as Gross Profit, Stock, Creditors, etc. to be identified for the production of management reports or Financial Statements.

Data which is listed in a Financial Statement but is not reported, such as data represented by a dash, zero or a blank in a table, need not be tagged. However, if, for example, a mandatory iXBRL item is represented in the Financial Statements / Detailed Profit or Loss as a dash or zero, it must be tagged, as otherwise the file will not pass basic validation. See Part 3.1.3 below for further information on mandatory items in iXBRL submissions.

The following material is either exempt from or not required to be published under the Freedom of Information Act 2014. […]

 

1.6. Taxonomies

iXBRL tags are interpreted by reference to “taxonomies”, which are open source documents published on the internet. A taxonomy is, in essence, a dictionary linking each tag with the accounting concept it identifies. Like the Financial Statements, taxonomies reflect the standards known as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). For example, in the Irish FRS 102 extension taxonomy, the tag ProfitLossOnOrdinaryActivitiesBeforeTax denotes a company’s profit or loss before the charge to tax.

In ROS it is only possible to submit iXBRL files that have been tagged by reference to specific taxonomies that are accepted by Revenue, and a list of these is shown below.

Taxonomy

Taxonomy Version

Schema Reference

Applies to Financial Statements

FRS 101 Irish Extension

Final

https://xbrl.frc.org.uk/ireland/FRS-101/2019-01- 01/ie-FRS-101-2019-01-01.xsd

For periods commencing on or after 1 January 2018

FRS 102 Irish Extension

Final

https://xbrl.frc.org.uk/ireland/FRS-102/2019-01- 01/ie-FRS-102-2019-01-01.xsd

For periods commencing on or after 1 January 2019

EU IFRS Irish Extension

Final

https://xbrl.frc.org.uk/ireland/IFRS/2019-01-01/ieIFRS-2019-01-01.xsd

For periods commencing on or after 1 January 2018

FRS 101 + DPL

Final

https://raw.githubusercontent.com/revenueie/

dpl/master/schemas/ct/combined/2017-09-01/IEFRS-101-IE-DPL-2017-09-01.xsd

For periods ending on or after 1 January 2015

FRS 102 + DPL

Final

https://raw.githubusercontent.com/revenueie/dpl/

master/schemas/ct/combined/2017-09-01/IEFRS-102-IE-DPL-2017-09-01.xsd

For periods ending on or after 1 January 2015

EU IFRS + DPL

Final

https://raw.githubusercontent.com/revenueie/dpl/master/schemas/ct/combined/2017-09-01/IEEU-IFRS-IE-DPL-2017-09-01.xsd

For periods ending on or after 1 January 2015

IE GAAP

Rec

http://www.xbrl-ie.net/public/ci/2012-12- 01/gaap/core/2012-12-01/ie-gaap-full-2012-12- 01.xsd

For periods ended on or before 31 December 2014.

IFRS

Rec

http://www.xbrl-ie.net/public/ci/2012-12- 01/ifrs/core/2012-12-01/ie-ifrs-full-2012-12-01.xsd

For periods ended on or before 31 December 2014.

 

The taxonomy list and versions accepted by Revenue may change over time, in line with changes to the accounting frameworks in operation in Ireland. Revenue believes it is desirable for all stakeholders to make use of new taxonomies at the earliest opportunity to ensure that Financial Statements are tagged using the taxonomy aligned to the accounting framework under which the Financial Statements are produced. Accordingly, as new taxonomies become available, Revenue will determine a schedule for the adoption of each new taxonomy and the restriction of superseded taxonomies on a case-by-case basis, affording reasonable time to stakeholders to update their software and practices. Restrictions of superseded taxonomies will be notified by way of eBrief.

No private taxonomy extensions will be accepted by Revenue. For further information on the taxonomies currently accepted please see the PDF ”Electronic Filing of Financial Statements – Technical Note’ document.

1.6.1. How do I know which taxonomy I should use?

The table in section 1.6 lists the available taxonomies and the accounting periods for which they are relevant. Where available, filers should use the taxonomy aligned to the accounting framework under which the Financial Statements have been produced.

For example, where a company’s Financial Statements for the year ended 31 December 2018 have been prepared in accordance with FRS 102, then the FRS 102 + DPL taxonomy should be used. The same company’s 2019 Financial Statements should be tagged using the FRS 102 Irish Extension, which takes account of changes to the FRS 102 accounting standard resulting from the Financial Reporting Council’s triennial review of FRS 102, effective for years commencing on or after 1 January 2019 (it should be noted that early adoption of these amendments is permitted).

Revenue may restrict the use of older taxonomies to ensure they are not used to tag Financial Statements that have been prepared under a newer accounting framework. For example, with effect from 1 August 2018, use of the IE GAAP and IE IFRS taxonomies is restricted to accounting periods ended on or before 31 December 2014. Filers cannot use the IE GAAP or IE IFRS taxonomies for any iXBRL submissions where the accounting period ends on or after 1 January 2015.

For further details on how this restriction affects Section 110 companies, please see Part 3.1.5.

1.7. iXBRL software packages and tagging services

Generally, Corporation Tax filers will require software to produce the Financial Statements in iXBRL format. It is not planned to develop a ROS solution for compiling the iXBRL files through input screens. However, a ROS development has been implemented to accept iXBRL files that have been created using externally sourced software.

If filers currently use a UK iXBRL software package and would like to use it to create iXBRL Financial Statements for submission to Revenue, they should check with their software vendor as to whether this is possible. However, filers should be aware that the UK iXBRL software package must be capable to use the accepted taxonomies set out in Part 1.6 above for this to be possible.

It should be noted that Revenue will not provide a list of tagging products or services, nor are there any plans to provide a tagging facility for small entities.

1.8. Keep up to date

The iXBRL page on the Revenue Website:

http://www.revenue.ie/en/companies-and-charities/submitting-financialstatements/index.aspx

For further information on non-routine iXBRL matters, please email

ixbrl@revenue.ie

1.9. Technical information

See the Electronic Filing of Financial Statements (iXBRL) – Error Messages Guide for further information on error notifications received and suggested remedies.

See the Electronic Filing of Financial Statements (iXBRL) – Technical Note for general technical information including:

  • what taxonomies and entity identifier schemes Revenue accepts;
  • what validation rules apply.

The Electronic Filing of Financial Statements (iXBRL) – Style Guide outlines the rules. It also provides guidance to software developers and those using iXBRL conversion tools.

Details on the ROS Public Interface Test (PIT) can be found in Electronic Filing of Financial Statements (iXBRL) – Public Interface Test (PIT).

  1. Electronic filing

One of Revenue’s key priorities in our Statement of Strategy is to establish the use of electronic channels as the primary way of conducting business with Revenue.

2.1. iXBRL – Mandatory Electronic filing of the Financial Statements

Since 2013, Revenue has implemented a phased introduction of the requirement to file electronic Financial Statements as part of the Form CT1. There will be a gradual transition until eventually all Corporation Tax payers will submit their Financial Statements in iXBRL format.

The table below sets out who is required to file iXBRL Financial Statements and when:

Commencement Date

iXBRL Filing

23 November 2012

Voluntary for all Corporation Tax payers

1 January 2013

Voluntary for all Income Tax payers

1 October 2013

Phase I

 

Mandatory for customers of Revenue’s Large Cases Division filing Corporation Tax returns (except Section 110 Securitisation Special Purpose Vehicles)

 

(i) on or after 1 October 2013

 

(ii) with respect to accounting periods ending on or after 31 December 2012

1 May 2014

Mandatory for customers of Revenue’s Large Cases Division Section 110 Securitisation Special Purpose Vehicles filing Corporation Tax returns

 

(i) on or after 1 May 2014

 

(ii) with respect to accounting periods ending on or after 31 July 2013

1 October 2014

Phase II

 

Except those meeting iXBRL deferral criteria*, mandatory for all Revenue customers filing Corporation Tax returns

 

(i) on or after 1 October 2014

(ii) with respect to accounting periods ending on or after 31 December 2013

Later phases to be confirmed

Mandatory for all Corporation Tax payers not covered by Phases I & II. The mandate may be extended in the future to some Income Tax filers.

 

*iXBRL deferral criteria

To be excluded from the Phase II filing obligation, a company must meet all three of the following criteria:

  1. The Statement of Financial Position/Balance Sheet total (3) of the company does not exceed €4.4 million; and
  2. The amount of the turnover of the company does not exceed €8.8 million; and
  3. The average number of persons employed by the company, calculated in accordance with s.317 of the Companies Act 2014, does not exceed 50.

Companies that meet the iXBRL deferral criteria for Phase II should select Option 3 on the Form CT1; see Part 3 for further information.

It should be noted that it is not appropriate to ‘pro-rate’ the iXBRL deferral criteria where a business has a long accounting period as turnover / revenue may not accrue evenly over the course of the accounting period, the balance sheet total at a particular Corporation Tax period end could not be known and the calculation of the average number of employees would be calculated over the whole of the long accounting period. Companies not yet subject to mandatory iXBRL filing, as well as Income Tax filers, may still file electronically on a voluntary basis.

2.1.1. Revenue’s current administrative practice regarding iXBRL filing deadlines Revenue’s current administrative practice regarding iXBRL filing deadlines allows for the filing of Financial Statements in iXBRL format either:

  • before the filing of the Form CT1;
  • at the same time as the filing of the Form CT1; OR
  • within 3 months after the due date for filing the Form CT1(4).

Should a company choose to file its iXBRL Financial Statements within 3 months after the due date for filing the Form CT1, it is important to note that the Form CT1/Corporation Tax Return is deemed to be incomplete where the iXBRL Financial Statements have not been filed during this 3-month period. This can affect refunds/repayments and can lead to refusal of applications for tax clearance. Therefore, companies should ensure to file their iXBRL Financial Statements on or before the due date of the Form CT1 if they wish to ensure that they are not affected by these issues.

(3) An issue that arose in relation to the meaning of Statement of Financial Position/Balance Sheet Total relevant to the criteria relating for the introduction of Phase II was addressed in eBrief 37/15, which issued on 27 March 2015. In summary, the definition of Statement of Financial Position/Balance Sheet Total is “the aggregate of assets without deduction of liabilities” in respect of all iXBRL submissions made since 1 November 2015. Prior to eBrief 37/15, filers had been able to measure the balance sheet total based on “total net assets”.

(4) Section 959A defines “specified return date for the chargeable period” as no later than the 21st day of the 9th month or 23rd day of the 9th month, where return is filed electronically (ROS) following the end of the accounting period.

This 3-month administrative practice was introduced from 18 July 2016 and applies for accounting periods ending on or after 1 December 2015. It will continue to apply to subsequent accounting periods until such time as Revenue changes the practice. The practice is subject to review on an ongoing basis and may be withdrawn at Revenue’s discretion. Should Revenue decide to change this practice, an eBrief will issue in advance of the change, affording reasonable time to stakeholders to update their practices.

2.1.2. Effect of Revenue’s current administrative practice regarding iXBRL filing deadlines on the Corporation Tax acknowledgement letter

The de-coupling of the submission of the Financial Statements from the Form CT1/Form 11 will not delay the issue of the Corporation Tax acknowledgement letter and the CT1/Form 11 must still be submitted within the prescribed timelines. Please note that where a customer has indicated that they intend to submit Financial Statements in iXBRL format but has not yet done so, the receipt of a Corporation Tax acknowledgement letter does not constitute confirmation that filing obligations have been satisfied.

Since the Corporation Tax filing obligation has not been satisfied, no refunds/tax clearance will issue until the iXBRL Financial Statements are filed, even during the 3-month period following the due date of the Form CT1.

  1. What Financial Statements must be filed?

The Form CT1 for accounting periods ending in 2013 or earlier contains a single tick box to indicate if an iXBRL file is being submitted by the filer.

When a taxpayer is completing a Form CT1 for accounts periods ending in 2014 or later they will be faced with several questions to determine whether they must complete the “Extracts from Accounts” section in the Form CT1 or whether they must file iXBRL Financial Statements.

Option 1) I am not mandated to file Financial Statements in iXBRL format, but I elect to do so.

Option 2) My tax affairs are dealt with by Revenue’s Large Cases Division or I am not excluded from filing Financial Statements in iXBRL format under options 3, 4 or 5 below.

Option 3) My tax affairs are not dealt with in Revenue’s Large Cases Division and I am not mandated under phase 2 to file Financial Statements in iXBRL format because each of the following three criteria apply to me and I am claiming an exclusion:

  1. The balance sheet total (aggregate of assets without deduction of liabilities) of the company does not exceed €4.4 million; and
  2. The amount of the turnover of the company does not exceed €8.8million; and
  3. The average number of persons employed by the company does not exceed 50.

Option 4) The company is inactive and there is no income or expenses on the Profit and Loss account and there is a balance sheet movement of less than €500.

Option 5) The company is in liquidation (not a voluntary liquidation where there are net assets for liquidation).

Taxpayers who fall into option 1 or option 2 must file iXBRL accounts. Taxpayers that neither opt, nor are obliged, to file Financial Statements in iXBRL format must complete the “Extracts from Accounts” on the Form CT1 in full.

It is important to note that abridged Financial Statements, which companies may prepare under company law, will not constitute a valid submission for Revenue purposes.

 

It is not acceptable to have the Financial Statements partially reported in iXBRL and partly entered on the Form CT1. The iXBRL return must, at minimum, include the full Financial Statements including the Detailed Profit or Loss account. Therefore, where a taxpayer has indicated that they are submitting iXBRL Financial Statements, then the “Extracts from Accounts” section of the Form CT1 is not available to that taxpayer to complete.

3.1. What items should be included in the iXBRL file to be submitted to Revenue?

In eBrief 85/14, which issued on 30th September 2014, Revenue clarified that the Detailed Profit or Loss account (refer to paragraph 3.1.2 for more details) must be included in the iXBRL file submitted. Around the same time an email was sent to all potential Phase II iXBRL Filers providing the same notification on an individual basis. The 2014 and later versions of the Form CT1 also set out the content required in the iXBRL returns to include the Detailed Profit or Loss account. This means that every Corporation Tax filer has been notified of Revenue’s requirements. Revenue does not require re-submission of returns submitted prior to the introduction of the DPL requirement.

Revenue has mandated the full tagging of Financial Statements. This includes the Directors’ Report, Auditor’s Report, Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position (Balance Sheet), Statement of Cash Flows, Statement of Changes in Equity, Notes to the Accounts and a Detailed Profit or Loss account (please note this list is not exhaustive). Detailed Pension Notes and Detailed Financial Instrument Notes do not have to be tagged.

With the exception of the aforementioned Pension and Financial Instrument Notes, all data items presented must be tagged, including comparators (previous accounting period figures). If a data item appears more than once then it must be tagged each time. In circumstances where a financial report data item or concept does not have a relevant taxonomy tag, the data concerned should simply be left as plain text.

Completion of the “Extracts from Accounts” section of the Form CT1 is not mandatory where the Financial Statements are submitted and fully tagged in iXBRL. There should be no loss of detail in the iXBRL Financial Statements in respect of items which previously would have been declared in the Form CT1.

Generally, vendors of accounting software are now including iXBRL tagging functionality in their products allowing the iXBRL version of a set of Financial Statements to be generated automatically. What this means in practice is that the move to iXBRL is relatively seamless for taxpayers and agents using standard accounting packages.

The following guide will assist in determining the minimum content and tagging in iXBRL returns required by Revenue:

Form CT1 Filer- Company Category

Auditors Report

Directors Report

Detailed Profit or Loss

Balance Sheet

Disclosure Notes

Preparation and publication of financial statements required under (ROI) Companies Act (CA)- subject to CA Statutory Audit

Yes

Yes

Yes

Yes

Yes

Preparation and publication of financial statements required under (ROI) Companies Act (CA)- Not subject to CA Statutory Audit

 

Yes

Yes

Yes

Yes

Preparation and publication of financial statements required under (ROI) legislation other than the Companies Act (e.g. Industrial and Provident Societies Acts 1893-2014)

Yes- if applicable

Yes- if applicable

Yes

Yes

Yes- if applicable

Tax Resident in ROI – not required to prepare and publish Financial Statements under legislation in country of incorporation or in ROI.

 

 

Yes

Yes

 

Tax Resident in ROI – Preparation and publication of Financial Statements required under legislation in another jurisdiction (e.g. UK incorporated company bound by the UK Companies Act)

Yes- if applicable

Yes- if applicable

Yes

Yes

Yes- if applicable

Not Tax Resident in ROI – Operating a Branch or Agency in ROI

 

 

Yes

Yes- if applicable

 

Group Holding Company (Consolidated Financial Statements prepared and published)

 

 

Yes

Yes

 

                                                                                                                                                   

3.1.1. Statement of Cash Flows

It is understood that, under Company Law, the following entities are exempt from preparing a Statement of Cash Flows:

  • Companies incorporated under the Companies Act and entitled to the exemptions available in the legislation for small companies when filing Financial Statements with the Companies Registration Office (CRO). Note that small companies in this context means a company that meets two of the following three criteria:
  1. The amount of turnover of the company does not exceed €12 million;
  2. The balance sheet total of the company does not exceed €6 million;
  3. The average number of employees, calculated in accordance with s.317 of the Companies Act 2014, does not exceed 50.
  • Mutual life assurance companies;
  • Retirement benefit plans;
  • Investment funds that meet all the following conditions:

(i) substantially all the entity’s investments are highly liquid;

(ii) substantially all the entity’s investments are carried at market value; and

(iii) the entity provides a statement of changes in net assets

Such entities will not be required to include a Statement of Cash Flows in their iXBRL Financial Statements.

3.1.2. Detailed Profit or Loss account (DPL)

Prior to the introduction of the “Extracts from Accounts” in the Form CT1, Corporation Tax payers generally provided Revenue with a paper DPL. It should be noted that where the Financial Statements of a company are submitted in iXBRL format, the “Extracts from Accounts” section of the Corporation Tax return is not available for completion. Instead, a Detailed Profit or Loss account (DPL) is required. This is on the basis that the format of the Statement of Profit or Loss, as required by the Companies Act, does not provide the level of detail required in the prescribed Form CT1. Therefore, the DPL is required in the iXBRL file.

Generally, the DPL will contain greater detail than the limited “Extracts from Accounts” section of the Form CT1. It is expected that businesses will have this greater level of detail in order to compute the net profit/loss figure in the Financial Statements. Even if the business is not required to produce Financial Statements, it is expected that this level of detail will be available in order to complete the Corporation Tax return. In keeping with Revenue’s requirement for full tagging of the Financial Statements, all the line items in the DPL should be tagged, including the prior year comparators.

All iXBRL filers are required to submit a fully tagged DPL (including prior year comparators) in all iXBRL submissions from 1 December 2015.

Revenue requires that a business fully breaks down its DPL income and expenditure items and uses all relevant DPL tags in the accepted taxonomies. By way of illustration, in the context of the formats of the Statement of Profit or Loss required under the Companies Act, the DPL should, at minimum, provide the following additional detail:

  • Income should, where applicable, be broken down into Sales/Receipts/Turnover; Receipts from Government Agencies – GMS etc.; Other Income.
  • Expenditure should, where applicable, provide Cost of Sales details and line item details for Administrative, Distribution and any other relevant costs.

3.1.3. Mandatory items in iXBRL submissions

For iXBRL submissions using the IE GAAP or IE IFRS taxonomies, only Profit or Loss Before Tax is mandatory.

However, on the basis that there should be no loss of data between those Corporation Tax filers who complete the CT1 “Extracts from Accounts” and those who file iXBRL Financial Statements, all other taxonomies contain mandatory items equivalent to the mandatory items on the CT1 “Extracts from Accounts”:

CT1 Mandatory Item

iXBRL Mandatory Item

Taxonomy

Sales / Receipts / Turnover

DPL Turnover Revenue

DPL

Receipts from Government Agencies – GMS, etc.

DPL Government Grant Income

DPL

Other Income

DPL Other Operating Income

DPL

Gross Trading Profits

DPL Gross Profit Loss

DPL

Salaries / Wages, Staff Costs

DPL Staff Costs Employee Benefits Expense

DPL

Sub-contractors

DPL Subcontractor Costs

DPL

Profit (loss) on ordinary activities before taxation

DPL Profit Loss Before Tax

DPL

Shareholder’s Funds

Equity

FRS/IFRS

 

Figure 3: Extracts from Accounts

If a company has no values for any of these items, then a zero value must be reported.

Please note that the mandatory iXBRL items which are required in the DPL are in no way intended to constitute a ‘pro-forma’ DPL or minimum tagging list. Please see Part 3.1.2 above for further information on the DPL format or layout required by Revenue.

The iXBRL mandatory items mirror the ‘required fields’ on the CT1 ‘Extracts from Accounts’, and as with the ’Extracts from Accounts’, they should reflect what is in the Financial Statements. The iXBRL mandatory items are intended for transcription, not recalculation or reclassification. Please see the table below for some general and specific guidance on how to use the iXBRL mandatory items.

 

 

iXBRL mandatory item

Guidance

DPLTurnoverRevenue

Companies should record the amount that they would normally term to be their “turnover” in their financial statements.

 

Insurance/Reinsurance/Life assurance companies: turnover is “earned premiums net of reinsurance” plus “net investment income”. Ignore claims, administration expenses and acquisition expenses.

 

Special Purpose Vehicles (SPVs) and leasing companies: turnover is gross income. Follow the accounts not the tax computation.

DPL Government Grant Income

This includes income from government departments, such as GMS payments, Free Legal Aid, Department of Agriculture payments etc. This is to facilitate filers who identify such income separately or whose income is solely derived from a government source.

DPL Other Operating Income

Do not enter income taxable under a separate heading such as investment income, rent, forex gains or losses, dividends or interest. The term Other Operating Income is used to facilitate filers who may not be happy to describe their main income as “Sales, receipts or turnover” or as GMS income.

DPL Gross Profit Loss

Companies should record the amount that they would normally term to be their “gross profit”. Insurance/Reinsurance/Life assurance companies: gross profit is “earned premiums net of reinsurance” minus “claims incurred net of reinsurance” plus “net investment income”.

DPL Staff Costs Employee Benefits Expense

This is the deduction for staff remuneration in the accounts, excluding remuneration paid to directors.

DPL Subcontractor Costs

This is the amount paid out to subcontractors during the accounting period.

DPL Profit Loss Before Tax

This is the profit or loss per the financial statements before the charge to tax.

Equity

This is the residual interest in the assets of the entity after deducting all its liabilities and is equivalent to Shareholder’s Funds under Irish GAAP before the introduction of FRS 101/102.

 

3.1.4. Submission of draft Financial Statements in iXBRL format

In certain limited circumstances Revenue recognises that it may be necessary to file draft/provisional Financial Statements. Revenue is prepared to accept that if the filer is satisfied that the only issue pending is that the Financial Statements have not been signedoff by the director(s), then it is in order to file the draft/provisional Financial Statements without prior permission from Revenue. In these circumstances, there is no need to resubmit the iXBRL Financial Statements, when they are signed-off later [unless the draft statements are different to the final ones submitted].

However, where there are any other issues giving rise to the draft/provisional Financial Statements, filers are required to contact the Revenue Branch which handles their affairs [using Revenue’s secure MyEnquiries facility; select the “Corporation Tax” and “iXBRL” dropdown categories], outlining the reason(s) for the draft Financial Statements and requesting permission to submit draft Financial Statements in that situation. If this is agreed with the Revenue Branch, then the final signed-off set of Financial Statements must also be submitted in iXBRL format.

If the Revenue Branch does not agree to allow the submission of the draft Financial Statements, then the obligation to file iXBRL Financial Statements remains and the company is required to file either the signed Financial Statements or draft Financial Statements, where they are satisfied that the only issue pending is that the Financial Statements have not been signed off by the director(s). Failure to do so before the due date for filing the iXBRL Financial Statements results in the Form CT1/Corporation Tax Return being deemed late, which may give rise to a surcharge and/or restriction of loss relief.

3.1.5. Section 110 companies and iXBRL

Section 110 companies are obliged to file iXBRL Financial Statements in respect of Corporation Tax returns made on or after 1 May 2014 and with respect to accounting periods ending on or after 31 July 2013.

Where a Section 110 company has elected to file its Corporation Tax returns on the basis of single entity IFRS Financial Statements or modified Irish GAAP, it is required to file these Financial Statements in an iXBRL format.

Where a Section 110 company has not elected to file its Corporation Tax returns on the basis of single entity IFRS Financial Statements or modified Irish GAAP, and instead decides to file its Corporation Tax return on the basis of single entity accounts prepared under Irish GAAP as applied at December 2004 (i.e. Old Irish GAAP), that Section 110 company should file an iXBRL version of the single entity Old Irish GAAP management accounts upon which it bases its return. These single entity Old Irish GAAP management accounts should, at a minimum, include a Detailed Profit or Loss account and Statement of Financial Position / Balance Sheet. In addition, the Auditor’s Report and the Directors’ Report that are included in the signed Financial Statements should be submitted (this information would not be prepared as part of the Irish GAAP as at 31 December 2004 management accounts).

Restriction of the IE GAAP and IE IFRS taxonomies and Section 110 companies

Revenue is aware that Section 110 companies who prepare their Corporation Tax returns on the basis of single entity accounts prepared under ‘Old Irish GAAP’ have usually used the IE GAAP taxonomy to tag their accounts.

On the basis that, from 1 August 2018, the use of the IE GAAP and IE IFRS taxonomies has been restricted to accounting periods ended on or before 31 December 2014, Section 110 companies are obliged to use the later FRS/IFRS taxonomies for their iXBRL submissions in respect of accounting periods ending on or after 1 January 2015.

It should be noted that the use of later FRS or IFRS taxonomies by a Section 110 company in no way constitutes an election to file its Corporation Tax returns on the basis of single entity IFRS Financial Statements or modified Irish GAAP. Revenue considers that the taxonomy used to tag the accounts is not relevant to such an election.

3.1.6. Groups of companies and iXBRL

Consolidated Financial Statements are prepared for an accounting period to represent the activity of a group of companies. Such consolidated Financial Statements will include the Directors’ Report, Auditor’s Report and Opinion, Statement of Profit or Loss and Other Comprehensive Income, Statement of Financial Position (Balance Sheet) and Notes to the accounts. However, companies within such a group, including the group holding company, are usually individually registered for Corporation Tax and are required file a tax return to Revenue based on financial information prepared and made out in respect of that company’s individual activity.

Many companies avail of the exemption under the Companies Act 2014 whereby separate holding company individual Financial Statements need not be submitted to the CRO. In such circumstances, the holding company Financial Statements are stated as a consolidation of the group accounts. A holding company individual Statement of Financial Position / Balance Sheet and the related holding company individual Statement of Financial Position / Balance Sheet disclosure notes are included in such consolidated Financial Statements. There is generally no separate Statement of Profit or Loss account for the holding company or disclosure notes. Only consolidated Statement of Profit or Loss and consolidated Statement of Profit or Loss disclosure notes need be included. Revenue requires individual sets of Financial Statements to be submitted in iXBRL format in respect of each company within a group. However, holding companies may submit consolidated Financial Statements to Revenue, provided the following are included:

  • A holding company individual Statement of Financial Position / Balance Sheet and the related holding company individual Statement of Financial Position / Balance Sheet disclosure notes; and
  • Separate Detailed Profit or Loss (DPL) account for the holding company containing, at a minimum, such level of information as would allow the chargeable profits of the entity to be assessed.

This individual holding company DPL account should be tagged and appended to the consolidated Financial Statements such that one document in iXBRL format can be submitted. In addition, Revenue expects the holding company individual Statement of Financial Position / Balance Sheet to be tagged. Notes to Accounts, Directors’ and Auditor’s Reports should include such tagged disclosures which are relevant to the holding company.

3.1.7. Branches, Agencies and iXBRL

Section 884 of the Taxes Consolidation Act (TCA) extends the definition of a return in respect of a company trading through a Branch or Agency to produce financial information containing sufficient information to enable the chargeable profits of that Branch or Agency to be determined. Section 76A TCA 1997 requires such financial information to conform to generally accepted accounting practice. In practice Revenue will require an iXBRL Detailed Profit or Loss account and a Statement of Financial Position / Balance Sheet (to the extent that one is prepared) in respect of the Branch or Agency. In determining if the Branch meets the iXBRL deferral criteria from Phase II of mandatory iXBRL filing, it is sufficient to look at the information referable to the Branch itself rather than the company.

  1. The iXBRL submission process

ROS includes screens allowing taxpayers or agents to submit their Financial Statements in iXBRL. This will be accessible at any time via the “My Services” or “Agent Services” screens in ROS and will also be available during the CT1 filing process. Financial Statements may be uploaded before, after, or alongside a CT1.

4.1. ROS: The iXBRL submission process

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Figure 4: My Services screens

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Figure 5: Agent Services screens

4.1.1. Testing iXBRL files

Revenue’s File Format Test Facility is available to allow customers to ensure that their iXBRL files are working satisfactorily in advance of submission. This can be accessed at:

https://rospublictest.ros.ie/rcw/xbrl/fftest/startUpload

Features of the File Format Test Facility:

  • File size limit of 1MB
  • Due to licensing restrictions on 3rd party products, the Revenue Business Rules, which are executed using XBRL Formula language, will not take place for test documents submitted via Revenue’s File Format Test Facility (see Part 2.5 of the iXBRL Error Messages document for further information).

If a company wishes to test a file exceeding 1MB in size, or test it against the Revenue Business Rules, it is recommended that they upload the file using their ROS digital certificate or ask their agent to upload it using their ROS digital certificate.

If the file contains any errors, a report will be generated, and the upload will not be recorded as the submission of a return as the file will not be accepted by ROS. If the file does not contain any errors, then the upload will be recorded as a submission of a return and there will be no requirement for testing.

If filers are concerned that the iXBRL Financial Statements that they wish to test are incomplete or not yet ready for submission through ROS, they should ensure that the document contains an error so that it is not accepted by ROS as the submission of a return. For example, the Companies Registration Office (CRO) number or Corporation Tax registration number in the document could be changed so that it does not match that of the company (e.g. to 0). If this is done, the document will not pass validation and filers will receive a message stating that the CRO number or tax number does not match Revenue records, in addition to messages concerning any other errors that may be in the document.

Developers who wish to conduct testing of iXBRL files may apply for a PIT Digital Certificate. Further information on how to do this is set out in Part 5.1 of the iXBRL Public Interface Test (PIT) document.

4.1.2. How will filers know that an iXBRL filing has been accepted by Revenue?

A message confirming a successful filing will be returned. If a filing is unsuccessful, an error message will be displayed to indicate the nature of the problem. This document contains a list of possible errors and the course of action to be taken when iXBRL filers receive error notifications:

https://www.revenue.ie/en/online-services/support/documents/ixbrl/error-messages.pdf

As set out in Part 7.4 of this document, Revenue staff are not expected to deal with specific tagging issues of iXBRL files, and filers should contact their software vendor in the first instance if they are unable to fix the errors in the document. Software vendors who have problems with validating iXBRL files that they are unable to resolve elsewhere can contact iXBRL@revenue.ie.

4.1.3. Amending iXBRL Financial Statements

Where amendments to iXBRL Financial Statements are required (e.g. a tagging error exists), it is possible to submit an amended or corrected version.

Where the adjustments to the Financial Statements do not also impact the information submitted in the CT1/Form 11, there is no requirement to re-submit the CT1 or Form 11.

4.2. Integrity checks

Revenue carries out the following ‘real-time’ integrity checks on all original or amended Forms CT1 submitted for account periods ending in 2014 or later:

  1. Turnover: A check is carried out at the time of filing the Form CT1 to determine whether the turnover declared in CT1 “Extracts from Accounts” of the company exceeds €8.8 million. If the turnover exceeds this turnover limit it will not be possible to proceed without selecting the iXBRL option on the Form CT1.
  2. Statement of Financial Position / Balance Sheet total (aggregate of assets without deduction of liabilities): A check is carried out, at the time of filing the Form CT1, on shareholder funds in the CT1 “Extracts from Accounts”. If this total exceeds €4.4 million it will not be possible to proceed without selecting the iXBRL option on the Form CT1. Not all cases where the Statement of Financial Position / Balance Sheet total exceeds €4.4 million will be picked up by this check. Ultimately, it is the company’s responsibility to determine whether they are obliged to file iXBRL Financial Statements.

Revenue also carries out integrity checks following the submission of the Form CT1 as follows:

  1. Check if Large Cases Division (LCD) Case† : When the Form CT1 is accepted by Revenue a subsequent check is carried out to determine if the case is dealt with in LCD. Where this check indicates that the case is an LCD case, the obligation to file iXBRL Financial Statements remains and this may affect any tax refunds, tax clearance, liability to surcharges etc.

Note:

† It should be noted that LCD companies who have selected Options 4 or 5 on the Form CT1 stating that they are inactive or in liquidation (not a voluntary liquidation where there are net assets for distribution) will not be subject to this check. For iXBRL purposes, inactive companies are those companies with no income or expenses in the Statement of Profit or Loss and a Statement of Financial Position / Balance Sheet movement of less than €500.

4.2.1. Integrity checks that no longer operate

Selecting Number of Employees: When the Form CT1 was accepted by ROS, Revenue formerly carried out a subsequent check on the number of employees included in the most recently filed Form P35L. Where this check indicated that the number of employees was greater than 50, the obligation to file iXBRL Financial Statements remained.

This check was turned off from 1 August 2018 as Revenue now accepts the method of calculating the average number of employees as set out in Section 317 of the Companies Act 2014; that is, the number of persons employed by a company in each month of the financial year, aggregated and then divided by the number of months in the financial year of the company.

It should be noted that any companies still being affected by this check should use MyEnquiries (select the “Corporation Tax” and “iXBRL” drop-down categories) to request that the iXBRL Financial Statements are marked as not required where the average number of employees in the statutory Financial Statements does not exceed 50.

Companies should note that their Revenue office may require a copy of the statutory Financial Statements in a non-iXBRL format such as Word or pdf as evidence that the average number of employees declared in the statutory Financial Statements does not exceed 50.

Should the average number of employees in the statutory Financial Statements exceed 50, the obligation to file iXBRL Financial Statements will remain.

The only circumstance under which it will be necessary to contact Revenue in respect of the average number of employees is when the turnover does not exceed €8.8 million and the Statement of Financial Position / Balance Sheet total does not exceed €4.4 million.

4.3. Validation checks

Uploaded iXBRL Financial Statements are subject to validation checks. The status of iXBRL files uploaded in ROS are viewable in an ‘iXBRL Results Screen’. The results of the checks will automatically be displayed when available. If any submissions fail this process, a notification will be sent to the customer’s ROS inbox informing them of the errors.

Taxpayers will then have the option to amend and re-submit their accounts. Further details on the types of validation checks carried out can be found in the iXBRL Technical Document “Error Messages”.

4.4. Uploading multiple Financial Statements

Changes have been made to ROS to enable Agents to upload multiple Financial Statements in iXBRL format simultaneously. The “Manage Financial Statements” section on the Agent Services page has two options; “Manage Financial Statements” and “Upload Multiple Files”. The “Manage Financial Statements” option facilitates uploading of a single iXBRL file. The “Upload Multiple Files” option enables the Agent to upload multiple iXBRL files.

It should be noted that multiple iXBRL files can be uploaded and multiple Forms CT1 can be uploaded, but it is not possible to upload both iXBRL and Form CT1 files within the same upload session.

4.5. iXBRL Financial Statements stuck in “Processing”

If filers have attempted to upload iXBRL Financial Statements and the file displays as “Processing” for a number of hours or more, they should contact the ROS Helpdesk (ROSOnLineHelp@revenue.ie) to request that the file is released from “Processing” before re-submitting it.

If the due date for filing the iXBRL Financial Statements should pass while filers are awaiting the release of the file, they should also use MyEnquiries (select the “Corporation Tax” and “iXBRL” drop-down categories) to contact the Revenue Branch which handles their affairs if they intend to:

(A) Request that any surcharge that arises as a result of this issue is waived; OR

(B) Proceed with a claim for Group Relief

Filers should state whether they are requesting the waiver of a surcharge and/or that they intend to proceed with a claim for Group Relief in their message, and it should be accompanied by:

  • A screen-grab showing that the iXBRL Financial Statements are stuck at “Processing”; and
  • A copy of the email sent to the ROS Helpdesk requesting that the iXBRL file be released; and
  • A copy of the iXBRL file that was being uploaded.

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Figure 6: The image above illustrates how the screen-grab should appear

On condition that filers re-submit the iXBRL Financial Statements in a timely manner following their release by the ROS Helpdesk, the Branch will waive any surcharge arising as a result of this issue, nor will a Group Relief claim be restricted.

  1. iXBRL and sole traders

It is recognised that, in addition to maintaining books and records, a sole trader may prepare a Statement of Profit or Loss in order to complete a tax return.

While there is no general statutory obligation for sole traders to prepare Financial Statements on the basis of a recognised accounting standard, Revenue recognises that sole traders may wish to file Financial Statements in iXBRL format. To facilitate this body of taxpayers and their agents, those filing Income Tax returns have been able to submit their Financial Statements in iXBRL format via ROS since 1 January 2013.

Taxpayers choosing this option may omit the accounts menu data currently required as part of their return, where all the information required at present in the “Extracts from Accounts” menu is included and fully tagged in the iXBRL Financial Statements filed.

In the event that the Form 11 box is ticked in error and there is no iXBRL filing of Financial Statements, then the customer is required to fill in the “Extracts from Accounts” section on the Form 11.

  1. Compliance issues

The following material is either exempt from or not required to be published under the Freedom of Information Act 2014. […]

 

6.1. Changes to accounting periods

 As set out in Part 1.1, iXBRL Financial Statements are encompassed within the definition of a Corporation Tax return. Accordingly, ROS periods for the filing of iXBRL Financial Statements are aligned to the corresponding Corporation Tax periods.

For example, if a company has a 12-month accounting period ending on 31 December, it will have a Corporation Tax (ROS CT1) period of 1 January to 31 December, with dual requirements to file both the Form CT1 and the iXBRL Financial Statements for the period. If the periods in the iXBRL Financial Statements do not match up when the file is uploaded in ROS (subject to small tolerances to allow for weekends etc.), the file will be rejected and an error message will be generated. Please see errors 2 & 3 in Table 2.5 of the Error Messages document for specimen error messages.

It is possible to change the Form CT1 period while completing the Form CT1 (please see Part 3.1 of Tax and Duty Manual 38-02-01 for further information). Alternatively, requests for changes to accounting periods may be made by contacting the Revenue Branch which deals with the taxpayer’s affairs (preferably through Revenue’s MyEnquiries facility, using the “Corporation Tax” and “iXBRL” drop-down categories).

If you have changed the ROS period for the Form CT1, the corresponding iXBRL period will also change to the new period, although it may take a couple of days for the changes to be visible in ROS.

6.1.2 iXBRL filing where a company has a long or short accounting period

Where a company has a long accounting period, Revenue will accept that the iXBRL Financial Statements for that long accounting period will be filed together with the latest Form CT1 due for the long accounting period.

For example, if a company has an 18-month accounting period running from 1 January 2017 to 30 June 2018, it will have two ROS CT1 periods for 1 January 2017 to 31 December 2017 and 1 January 2018 to 30 June 2018. The iXBRL Financial Statements for the whole of the Tax and Duty Manual Part 41A-03-01 33 long accounting period are required to be filed against the second ROS CT1 period of 1 January 2018 to 30 June 2018.

In these circumstances, the obligation to file iXBRL Financial Statements for the earlier ROS CT1 period remains, which may affect a company’s application for refunds, repayments and tax clearance. Therefore, filers will need to notify the Revenue Branch which handles their affairs (preferably through Revenue’s MyEnquiries facility, using the “Corporation Tax” and “iXBRL” drop-down categories) where there are multiple Forms CT1 being filed in respect of a long accounting period so that the requirement to file iXBRL Financial Statements can be switched off for the earlier ROS CT1 period(s).

Where a company has a short accounting period of less than 1 year in duration, it will be obliged to file iXBRL Financial Statements that cover the short accounting period.

Note: Where a ROS accounting period is adjusted after filing iXBRL Financial Statements, the iXBRL filing(s) previously submitted in respect of such period(s) will no longer be valid and consequently iXBRL Financial Statements must be re-submitted for the adjusted period(s).

6.2. Surcharge (s.1084)

Section 1084(1)(b)(i)(I) provides that if a person has carelessly or deliberately filed an incorrect return, and they do not remedy it without unreasonable delay, then they will be deemed not to have filed a tax return by the due date.

Section 1084(1)(b)(ia) provides that if a return which should have been delivered electronically is delivered in another format (e.g. paper), then it is an incorrect return.

Section 1084(2) then imposes a late filing surcharge on such returns.

Therefore, if a taxpayer has carelessly or deliberately failed to file their Financial Statements electronically, then a late filing surcharge is applicable.

This link bring you to the Taxes and Duties Manual “Surcharge for late submission of Returns”.

6.3. Corporation Tax – late returns (s.1085)

Failure to submit the iXBRL accounts as part of the return also results in an incorrect return for the purposes of section 1085. This impacts upon the availability of certain reliefs such as loss relief or group relief.

6.4. Repayments of tax (s.865)

A right to a repayment of tax only arises where a valid claim has been made. In the context of Corporation Tax repayments, officers should not generally consider that a valid claim has been made until any iXBRL Financial Statements have been filed. Accordingly, in the absence of iXBRL Financial Statements no repayments of Corporation Tax will generally be made.

The restrictions set out in 6.1, 6.2 and 6.3 above will apply in the same way as currently applies to the Form CT1. Branches will continue to have the right to remove loss restrictions or surcharges as currently applies with the Form CT1.

Information on loss restrictions can be found here

Information on surcharges can be found here

Branches will need to manually apply loss restrictions and/or late filing surcharges for accounts periods ending in 2013 or earlier. In these situations, Branches should consider if there are genuine iXBRL filing difficulties that may warrant concessional treatment.

6.5. Penalty for failing to e-file (s. 917EA)

Where mandatory filing of the Financial Statements in iXBRL format applies and the 3 months have elapsed without the filing of Financial Statements in iXBRL format, the issue of a €1,520 penalty under section 917 EA (7) may apply.

6.6. iXBRL and the Companies Registration Office (CRO)

It is not necessary for companies who are iXBRL filers to make a separate submission of Financial Statements in iXBRL format to the CRO; the obligations and process for filing Financial Statements with the CRO remain unchanged.

  1. The role of…

7.1. …Revenue Operational Branches

Revenue Operational Branches will deal with iXBRL queries that are customer specific such as:

  • Helping customers to decide whether they fall into Phase I, Phase II or Phase III.
  • Waiving of obligation to file iXBRL returns in specific circumstances. This concerns dropping the obligation to file iXBRL return for a particular period. Examples of these are companies in liquidation and inactive companies.
  • Difficulties in meeting iXBRL filing deadlines.
  • Being familiar with this Tax and Duty Manual and the iXBRL webpage; directing customers to the technical documents on the Revenue iXBRL page where, for example, the taxonomies accepted by Revenue are listed.

7.2. …iXBRL Helpdesk

The iXBRL Helpdesk (ixbrl@revenue.ie) now deals only with non-routine iXBRL issues. The service is also available to software vendors who have problems with validating iXBRL files that they cannot resolve elsewhere.

7.3. …ROS Helpdesk

The ROS Helpdesk will assist customers with routine uploading of iXBRL files and accessibility of ROS services. Any issues relating to use of the ROS iXBRL services should be referred to this Helpdesk ROSOnLineHelp@revenue.ie.

7.4. …iXBRL issues which Revenue staff are not expected to handle

Revenue staff are not expected to deal with specific tagging issues of iXBRL files. These are generally accounting and/or software issues which should be handled by taxpayers, their agents, or software providers. Taxpayers encountering such difficulties should be referred to these agents or software providers instead of the iXBRL Helpdesk.

  1. Viewing and working with iXBRL files

The following material is either exempt from or not required to be published under the Freedom of Information Act 2014. […]

 

Appendix I – Legislative analysis of obligation to provide accounts

Persons who are registered for tax must maintain books and records. This obligation is dealt with in TDM Part 38-03-17.

Obligation to provide accounts information

A Corporation Tax payer must provide the accounts information required by notice or specified in the prescribed form (the Form CT1). The information required is limited to such accounts, documents annexed to accounts, further information, reports or further particulars as required which enable the chargeable profits of a company to be determined. This obligation is provided by section 884(2) and (2A), (Return of profits).

Section 959 I(4), (Obligation to make a return), provides that, under self assessment, notwithstanding that a notice to file a return was not received, a return under section 884 must be delivered by a chargeable person. Section 959K (Requirements for returns for corporation tax purposes) provides that for the purposes of Part 41A (Assessing rules including rules for self assessment) the return required for Corporation Tax purposes should include any of the information that would be contained in a return delivered pursuant to a notice delivered under section 884. This includes such “information, accounts, statements, reports and further particulars” as are required by the Form CT1.

Appendix II – List of former iXBRL FAQs and where they have been incorporated into this Tax and Duty Manual

FAQ No.

Narrative

Incorporated into Tax and duty Manual Part

1

What is iXBRL?

1.4 Para 1

2

What is difference between iXBRL and XBRL?

1.4 Para 2

3

Does iXBRL cause a change in accounting standards?

1.4 Para 3

4

Do revenue provide a test facility for iXBRL filers?

4.1.1

5

Why must I submit Financial Statements in iXBRL format?

1.1 Para 1

6

Am I obliged to submit tax Computations iXBRL format?

1.4 Para 6

7

Will the de-coupling of the submission of the Financial Statements from the CT1/Form 11 delay the issue of the notice of Assessment?

2.1.2 Para 1

8

Do I have to make a separate submission of Financial Statements in iXBRL format to the Companies registration office (CRO)?

6.6

9

Can I submit Financial Statements in iXBRL format in the Irish language?

 

10

If I file Financial Statements in iXBRL format during the optional phase, will I be subject to any additional Revenue scrutiny?

Deprecated

11

Does Revenue carry out any iXBRL integrity checking of Forms CT1?

 

12

What items should be included in the iXBRL file to be submitted to Revenue?

 

13

Will I meet my obligations if I provide details from the Financial Statements partly through the iXBRL return and partly through the “Extracts from Accounts” section of the Form CT1?

3.Para 5

14

From what date should the tagged iXBRL Detailed Profit & Loss Account (DPL) be filed?

3.1.2, Para 3

15

Why does Revenue require a DPL in the iXBRL file?

3.1.2, Paras 1 & 2

16

The CT1 “Extracts from Accounts” menu requires mandatory fields for Turnover, Gross Profit and Profit (Loss) Before Tax etc. Are there any mandatory fields for iXBRL submissions?

3.1.3

17

How should I use the iXBRL mandatory items?

3.1.3, Para 6

18

What format or layout does Revenue require for the iXBRL DPL?

3.1.2, Paras 4-6

19

If I file my Financial Statements in iXBRL format, do I still have to complete the CT1 “Extracts from Accounts” menu? Deprecated

 

20

Can sole traders submit Financial Statements in iXBRL format?

5, Para 2

21

What is the process for submitting Financial Statements via iXBRL?

4, Paras 1-2 22

22

How will I know that my iXBRL filing has been accepted by Revenue?

4.1.1

23

If I submit my Financial Statements in iXBRL format, do I still have to file a Corporation Tax return (CT1) or Income Tax return (Form 11)?

Deprecated

24

Is it sufficient to submit my Financial Statements in PDF format?

1.4, Para 5

25

Will there be a penalty for not filing correct iXBRL accounts?

6.2

26

Can I submit revised Financial Statements if an error is identified (perhaps due to a tagging mistake)?

4.1.3, Para 1

27

Is it permissible to submit abridged Financial Statements in iXBRL format?

3, Para 4

28

Where I submit amended Financial Statements, do I also need to re-submit my CT1 or Form 11?

4.1.3, Para 2

29

What should I do if I need to adjust my ROS accounting period and /or my Financial Statements cover more than a single ROS accounting period?

6.1

30

What are tags?

1.5, Para 1

31

What is a taxonomy?

1.6, Para 1 32

32

What taxonomies will Revenue accept?

1.6, Paras 1, 6 & 7

33

How do I know which taxonomy I should use?

1.6.1

34

What items within the Financial Statements need to be tagged?

3.1, Paras 2 & 3

35

Do I need to tag data which is listed in a Financial Statement but is not reported, such as data represented by a dash or a blank in a table?

1.5, Para 2

36

In my Financial Statements, the narrative of the Directors’ Report and the Auditor’s Report is unstructured; how should I tag these?

Deprecated

37

If I currently use a UK iXBRL software package, can I use it to make iXBRL filings to Revenue?

1.7, Para 2

38

In the UK, HMRC provide a list of software products and services for tagging purposes. Will Revenue be providing similar lists?

1.7, Para 3

39

In the UK, HMRC provide a tagging facility for small entities, will Revenue provide a similar facility?

1.7, Para 3

40

Do draft/provisional Financial Statements have to be iXBRL tagged?

3.1.4

41

41 Should S110 companies that elect to re-cast their accounts to a differing accounting standard for a given accounting period submit the revised accounts with their filing?

3.1.5, Paras 2-3 42

42

I note that Revenue is restricting the use of the IE GAAP and IE IFRS taxonomies to accounting periods ended on or before 31 December 2014. How will this affect Section 110 companies who file their Corporation Tax returns on the basis of single entity accounts prepared under Irish GAAP as applied at December 2004 (i.e. Old Irish GAAP)?

3.1.5, Paras 4-6 43 44

43

Under the ’94 – Countries and Regions’ domain, I cannot find or select ‘Jersey’ as a dimension for the tag “Country of incorporation” in the IE GAAP or IE IFRS taxonomies; what should I do?

Deprecated

44

Who is required to submit Financial Statements in iXBRL format and when?

2.1

45

45 What does Revenue mean by “Balance Sheet Total”?

2.1, Footnote 46

46

Must I file Financial Statements at the same time as my Form CT1 [or Form 11]?

2.1.1

47

If a business has a long accounting period covering more than one CT1 period, is it appropriate to ‘pro-rate’ the iXBRL deferral criteria when deciding whether the business has an obligation to submit Financial Statements in iXBRL format?

2.2, Para 4

48

When are S.110 Companies obliged to file their accounts in iXBRL format?

3.1.5, Para 1

49

Are all entities obliged to submit Financial Statements in iXBRL format?

1.1 and 5

50

Do audit-exempt companies have to file Financial Statements in iXBRL format?

1.1, Para 2

51

Where consolidated accounts are prepared for a group of companies, can these Financial Statements be submitted in iXBRL format to Revenue?

3.1.6

52

Are companies that are not resident but are trading through a Branch or Agency required to submit Financial Statements in iXBRL format?

3.1.7

53

Are Companies in liquidation required to prepare and file Financial Statements in iXBRL format?

1.3.1

54

Do inactive companies have to file statements in iXBRL format?

1.3.2

55

What criteria will Revenue use to deem a company inactive and therefore waive their filing obligation?

1.3.2

 

Appendix III – List of changes to this Tax and Duty Manual

Part

Changes that have taken place

1.3.3

Guidance added for companies that have applied for voluntary strike-off

6.1

Guidance on changing accounting periods amended for clarity and link to Tax and Duty Manual 38-02-01 inserted

6.1.2

Guidance on filing requirements for short and long accounting periods separated from Part 6.1 for clarity