Domestic business tax

Estimated assessment to tax  

The Bill contains a provision which will enable an Inspector of Taxes to raise an estimated assessment for income tax or corporation tax as appropriate, if a tax return is not filed on or before the return filing due date.

Under existing law, when a taxpayer files a tax return under self-assessment principles, the Inspector of Taxes can subsequently issue an amended notice of assessment to the taxpayer. In addition, an Inspector of Taxes can raise a notice of  assessment with regard to a period of assessment if no return is filed or if they have reasonable grounds to consider that a tax return is incomplete for the amount of tax which according to the Inspector’s best judgment ought to be charged.

The estimated assessment will be the higher of the average tax liability included on the two most recent tax returns delivered by the chargeable person, or €1,000. The chargeable person can displace the estimated assessment if, within 30 days of receipt of the estimated assessment, the taxpayer submits the relevant return to Revenue and pays the tax due, together with any related interest, penalties and surcharges, or informs Revenue that they are not a chargeable person for that period. A similar provision for estimated assessments already exists in VAT legislation.

Agri-business measures

Capital gains tax

Relief from capital gains tax is available where qualifying agricultural land is sold and the proceeds from the sale are reinvested in acquiring new farmland within 24 months where relevant conditions are met. Qualifying agricultural land is agricultural land (i.e. land used for the purposes of farming excluding buildings on the land) with respect to which a farm restructuring certificate has been issued by Teagasc and not withdrawn.

The Bill proposes that the relief, which was due to expire for farm restructuring where the first transaction in the restructuring is not carried out on or before 31 December 2025, will be extended to 31 December 2029. In addition, the definition of agricultural land has been expanded to include land suitable for occupation as woodlands on a commercial basis, and land suitable for occupation as woodlands (other than on a commercial basis) used for the purpose of conservation.

The amendments will be subject to the passing of a Ministerial commencement order.

Agricultural stamp duty reliefs

Relief from stamp duty is available in respect of transfers of agricultural land to young (i.e. under the age of 35) trained farmers where certain conditions are satisfied. The Bill provides for a four year extension of the relief until 31 December 2029. In the absence of this relief, such conveyances would generally be charged to stamp duty at a rate of 7.5%. The extension will be subject to the passing of a Ministerial commencement order.

Farm consolidation relief applies a 1% stamp duty charge (instead of the normal stamp duty rate of 7.5%) on the net consideration where land holdings are consolidated by way of linked disposals and acquisitions of qualifying land within a 24-month period. The Bill proposes to extend the relief until 31 December 2029. It is also proposed that the scope of the relief will be broadened to include non-commercial woodland. Both the extension and amendment will be subject to the passing of a Ministerial commencement order.

Accelerated capital allowances – farm safety equipment & capital expenditure on slurry storage

Accelerated capital allowances of 50% per annum over two years are available for expenditure on certain eligible farm safety equipment and slurry storage where conditions are met.

The Bill proposes to extend the date by which qualifying expenditure on slurry storage must be incurred from 31 December 2025 to 31 December 2029, subject to the passing of a Ministerial commencement order.

The Bill also proposes some technical amendments to include references to updated relevant EU regulations in the case of accelerated capital allowances for farm safety equipment.

General anti-avoidance rules

Irish tax law contains complex and wide ranging general anti-avoidance rules which can deny or withdraw a “tax advantage” arising from tax avoidance transactions. The provisions can apply where a transaction was undertaken primarily to give rise to a tax advantage.

The Bill proposes amendments to the general anti-avoidance rules which would widen the circumstances in which Revenue can remove the tax advantage. Currently, Revenue can do so where a taxpayer has submitted a return, declaration, statement or account or makes claim purporting to obtain the benefit of the tax advantage. The proposed amendments provide that Revenue will also be entitled to deny or withdraw the tax advantage where a taxpayer takes any other action, or fails to take any other action, and that action or failure directly or indirectly purports to obtain the tax advantage.