The Irish Revenue is planning to scrap traditional P60 and P45 forms and replace them with a new approach to the Pay As You Earn (PAYE) tax reporting system.
For employers, the new system will change current end-of-year reporting practices, requiring them to report payroll data to the Revenue at each pay period from 1 January 2019. Employees will also be able to view all of the data that their employers report to Revenue on their behalf.
According to The Journal, the shift will eliminate the need for P30, P45 and P60 forms, along with end-of-year returns. The Revenue believes it will ensure that ongoing employee tax deductions and contributions are accurate.
The government agency’s annual report said it has already collected €50.76 billion (US$60.73 billion) in taxes, duties and levies this year. Income taxes rose by 4% last year, while VAT increased by 7% and corporation tax by 11%. The Revenue also said that voluntary compliance rates remained high at more than 90% across all tax areas.
Niall Cody, the Revenue’s chairperson, added that the organisation saw a 13% reduction in the amount of debt available for collection. He said that early intervention when tax payment and filing obligations were not met had made a difference and that the Revenue has helped more than 10,000 taxpayers to deal with temporary payment problems by providing instalment arrangements worth a total of €94 million (US$112.5 million).
During 2017, some €212.4 million (US$254.1 million) was collected in more than 37,000 debt enforcement cases. Cody said: "The small minority who either refuse to engage with us or refuse to pay their tax are met with determined enforcement and collection action, and the additional cost of that action."
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
The Irish Revenue is planning to scrap traditional P60 and P45 forms and replace them with a new approach to the Pay As You Earn (PAYE) tax reporting system.
For employers, the new system will change current end-of-year reporting practices, requiring them to report payroll data to the Revenue at each pay period from 1 January 2019. Employees will also be able to view all of the data that their employers report to Revenue on their behalf.
According to The Journal, the shift will eliminate the need for P30, P45 and P60 forms, along with end-of-year returns. The Revenue believes it will ensure that ongoing employee tax deductions and contributions are accurate.
The government agency’s annual report said it has already collected €50.76 billion (US$60.73 billion) in taxes, duties and levies this year. Income taxes rose by 4% last year, while VAT increased by 7% and corporation tax by 11%. The Revenue also said that voluntary compliance rates remained high at more than 90% across all tax areas.
Niall Cody, the Revenue’s chairperson, added that the organisation saw a 13% reduction in the amount of debt available for collection. He said that early intervention when tax payment and filing obligations were not met had made a difference and that the Revenue has helped more than 10,000 taxpayers to deal with temporary payment problems by providing instalment arrangements worth a total of €94 million (US$112.5 million).
During 2017, some €212.4 million (US$254.1 million) was collected in more than 37,000 debt enforcement cases. Cody said: "The small minority who either refuse to engage with us or refuse to pay their tax are met with determined enforcement and collection action, and the additional cost of that action."
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
