Form 46G – filed in addition to CT1 and Form 11 IT Return

Business Tax. Income Tax for Professionals. Personal Taxes for Farming businesses. Form 46G, Income Tax Return. Corporation Tax Return.

Traders (including farmers), professionals and other persons carrying on a business, as well as non-trading or non-profit making organisations and bodies of persons (including charitable organisations and statutory bodies) are required to file Forms 46G annually containing details of payments made by them to third parties for services provided.  This form must be filed in addition to the Form 11 Income Tax Return and the CT1 Corporation Tax Return.

For individuals / persons (other than companies) the return should include payments made

1. in the twelve month period to 31st December each year or
2. up to the date on which accounts of the trade or profession are normally prepared

The Form 46G must be filed on or before 31st October of the following year.

For companies, the Form 46G should cover all relevant payments in an accounting period and be submitted no later than 9 months following the end of the relevant accounting period.

A non-compliant taxpayer (i.e. where a taxpayer fails to deliver a true and correct return) may be liable to a penalty of €3,000. In addition to which a tax clearance certificate may not be granted and tax refunds may be withheld.

Details of payments must be returned where the total amount paid to one individual or company in the year exceeds €6,000.

Relevant payments include:

• Payments for services provided in connection with the trade, profession, business etc.
• Payments for services provided in connection with the formation, acquisition, development or disposal of the trade or business
• Periodical or lump sum payments made in respect of any copyright.

Revenue provides a list of services that must be specifically disclosed. This list should be reviewed prior to filing a Form 46G on an annual basis.

The following categories of services were recently added:

• Call Centre/Customer Service
• Childcare
• Fitness, Sport & Leisure Services
• Fleet Management Services
• Health & Safety Services
• HR/Recruitment Services
• Internet & Information Technology related services (including website design or re-design, cloud services etc.)
• Landscaping/Gardening/Horticulture
• Marketing /Business Analysis
• Printing & Publishing
• Research

Certain payments are not required to be disclosed such as:

• Payments for essential services/utilities such as electricity, gas and telephone
• Payments from which income tax has been deducted
• Payments from which withholding tax has been deducted.  This includes payments which are subject to PAYE, fees paid subject to withholding tax, payments subject to Relevant Contracts Tax (RCT), etc.
• Payments to non-residents
• Payments for services where the value of any goods provided as part of the service exceeds two thirds of the total charge

For further details, please follow the link:

https://www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-38/38-03-13.pdf

Please be aware that the information contained in this article is of a general nature.  It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so. This information should not be acted upon without full and comprehensive, specialist professional tax advice.