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Written Answers - Tax Code

Thursday, 19 April 2012

Dáil Éireann Debate
Vol. 762 No. 1

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 76.  Deputy Heather Humphreys Information on Heather Humphreys Zoom on Heather Humphreys  asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan  if, in view of the cash flow problems caused to businesses by payment of value added tax he will consider putting in place a mechanism whereby payment of VAT to Revenue for debtors accounts not yet settled could be delayed for a reasonable period of time or until payment is received. [19648/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I am advised by the Revenue Commissioners that the legislative provisions for the payment of VAT as set out in the Value-Added Tax Consolidation Act 2010 is subject to the requirements of EU VAT law with which Irish VAT law must comply. The general position is that the VAT Directive defines a supply for VAT purposes, the time of supply and when the tax authority becomes entitled under law to claim the tax. Section 76 of the VAT Consolidation Act requires a trader to furnish a return with the appropriate remittance to the Collector-General within 19 days of the month immediately [170]following a taxable period but section 78 of the Act extends this period to 23 days in the case of electronic remittances and returns.

Section 80 of the VAT Consolidation Act allows a VAT-registered person to opt to account for VAT by reference to the amount of money which the person receives where:

the person’s supplies of goods or services are almost exclusively (at least 90%) made to unregistered persons. This would apply in practice mainly to retail outlets, public houses, restaurants, hairdressers and any similar type of business, or

the person’s annual turnover (exclusive of VAT) does not exceed or is not likely to exceed €1,000,000 a year.

Two thirds of registered VAT traders avail of this option and therefore account for and pay VAT to Revenue only on their cash receipts.

In the event that exceptional or once off factors giving rise to tax payment difficulties arise for otherwise viable businesses, they are encouraged to be proactive in approaching Revenue on how those factors will be overcome and timely compliance quickly restored. Revenue has published extensive information on its website on the matter of handling tax payment difficulties.

 77.  Deputy Jack Wall Information on Jack Wall Zoom on Jack Wall  asked the Minister for Finance Information on Michael Noonan Zoom on Michael Noonan  if a person (details supplied) in County Kildare is in receipt of all their entitlements and if they are being deducted the proper taxes; and if he will make a statement on the matter. [19660/12]

Minister for Finance (Deputy Michael Noonan): Information on Michael Noonan Zoom on Michael Noonan I have been informed by the Revenue Commissioners that based on the information available the person is exempt from both Income Tax and Universal Social Charge. The person was notified of this in writing on 14 February 2012. An Amended Tax Credit Certificate — 2012 giving the same information was issued to the pension provider on 4 February 2012.


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