Revenue to begin consultation process on mandatory electronic filing of tax returns and payments
The Revenue Commissioners announced today (13/09/07) that they are to begin a detailed and wide-ranging consultation process with tax practitioners, industry representative bodies, software providers and customers with a view to introducing a requirement that tax returns and payments for specific categories of taxpayers must be made electronically through ROS, the Revenue Online Service. ROS has already achieved significant electronic return filing and payment rates to date - but a considerable number of fully computerised businesses still remain outside the ROS system. The aim is to bring these businesses within ROS, on a phased basis, commencing with certain returns and payments due by larger companies in 2009.
Commenting on the initiative, Frank Daly, Chairman of the Revenue Commissioners, said:"There has been continuous and steady growth in the number of returns being filed online through ROS since its introduction in 2000 and there are clear benefits from using ROS in terms of efficiency and reduced compliance costs for taxpayers. The time has now come to proceed on a phased basis to mandatory electronic filing and payment of tax for all substantial businesses."
He went on to say that "The consultation process will aim to achieve as much consensus as possible on the scope of mandatory electronic filing and payment as regards who will be affected, what returns will be included and the timescale over which it will be implemented. It will allow legitimate concerns to be raised and give those likely to be affected every opportunity to put their views directly to us".
The Revenue Chairman added that "Revenue accepts that there will always be small businesses where mandatory electronic filing and payment would be inappropriate and Revenue intends to devise a much simplified paper return for these businesses so as to make their tax compliance easier."
Legislation providing for mandatory electronic filing and payment was passed by the Oireachtas in the 2003 Finance Act, subject to a Commencement Order to be made by the Minister for Finance. Once the consultation process announced today is completed and the necessary Commencement Order has been made by the Minister, Revenue and will then make regulations governing the implementation of mandatory electronic filing and payment.
[Ends 13/09/07]
Note for Editors.
(1) Electronic filing of returns
The legal framework for making electronic tax returns was introduced by section 209 of the 1999 Finance Act (now Chapter 6 of Part 38 of the Taxes Consolidation Act 1997 (TCA1997)). Electronic filing has taken place on a roll-out basis through the Revenue Online Service - ROS.
Section 164 of the 2003 Finance Act (now section 917EA of the TCA 1997) is an enabling provision dealing with the mandatory electronic filing and payment of tax which will only come into operation following the making of a Commencement Order by the Minister for Finance. Essentially the section allows Revenue to make regulations to oblige those taxpayers specified in the regulations to file their tax returns and pay their tax liabilities electronically. In making the regulations, Revenue have to provide for the exclusion of persons who cannot reasonably be expected to have the capacity to file and pay electronically.
(2) Revenue Online Service - ROS
ROS is an internet-based system that enables Revenue customers and their agents to conduct their business electronically with Revenue.
Some 2.6 million returns or forms were filed via ROS in 2006 and €16.6 billion in payments made.
The main features include facilities to:
- File returns and make payments
- Obtain online details of own or clients’ Revenue Accounts
- Calculate tax liability
- Claim repayments.
Registration with ROS is a simple process at the end of which a Digital Certificate issues which enables the customer to access ROS and utilise its full range of services in a secure and confidential manner.
In addition to allowing access to customers’ Revenue accounts, ROS also provides the following benefits:
- Instant acknowledgement
- Effective and efficient use of time
- Elimination of clerical errors
- Secure 24 - 7 access
- Online calculation facility
- User-friendly return forms
Additional information on ROS, including the range of returns and payments that can be filed electronically, can be found on our website.