The Institute, under the auspices of the CCAB-I, made representations on behalf of members at recent meetings of the Tax Administration Liaison Committee (TALC) Direct and Capital Subcommittee and TALC Indirect Taxes Subcommittee. Among the issues that the Institute raised were the filing requirements for Investment Limited Partnerships and the VAT treatment of microgeneration of electricity.
TALC Direct and Capital Subcommittee meeting
Filing requirements of an Investment Limited Partnership
CCAB-I raised a query on the filing requirements for Investment Limited Partnerships (ILPs). An ILP is regulated by the Central Bank of Ireland as a Qualifying Investor Alternative Investment Fund (QIAIF). The partners of an ILP are similar to shareholders in an investment company or unitholders in a unit trust. Section 739J(3) TCA 1997 requires an ILP to file a return on or before 28 February in the year following the year of assessment. This is known as the Form ILP1. Our members were reporting confusion as to whether an ILP is also required to file the Form 1 (Firms) partnership return. In our view, a Form ILP1 should be the appropriate form.
Revenue confirmed, however, that an Investment Limited Partnership is required to complete both a Form 1 (Firms) and a Form ILP1. A new tax and duty manual on partnerships will issue in the coming months.
Partnerships and association for the purposes of certain ATAD measures
CCAB-I raised a query on the meaning of “associated entities” and the impact on partnerships for the purposes of the Outbound Payments Defensive Measures. This concept is also discussed in guidance on Anti-Hybrid Mismatches and on the Interest Limitation Rule. We requested clarification on whether guidance in the latter manuals pertaining to partnerships would be updated to reflect the guidance in the Outbound Payments Defensive Measures manual. Revenue noted that future guidance will cover the general tax implications of partnerships and specific provisions which should address the query raised.
Residential Zoned Land Tax
An update was provided by Revenue on the recent meeting of the Residential Zoned Land Tax Subcommittee. The issue regarding the lack of a clearance mechanism for certain property transactions was raised and consequent expected delays were outlined to Revenue.
TALC Indirect Subcommittee meeting
VAT on the microgeneration of electricity
Revenue confirmed that the application of VAT on the microgeneration of electricity by businesses can be managed by the business itself or by the electricity supplier receiving the excess energy via customer self-billing.
VAT in the Digital Age update
Revenue also outlined the measures which form part of the VAT in the Digital Age (ViDA) proposal which aims to significantly modernise the EU’s VAT system. The three pillars to the proposal cover e-invoicing and digital reporting, platform economy, and single VAT registration with all proposals expected to be fully implemented by 2030.
VAT scheme for small enterprises
Revenue confirmed that the directive on the special VAT scheme for small enterprises (Directive 2020/285) will be transposed soon, after which guidance will be issued. This scheme is operating by Revenue on an administrative basis since 1 January 2025.
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