CREDIT UNIONS INTEREST REPORTING (EXTENSION OF VOLUNTARY DISCLOSURE INITIATIVE)

The Revenue Commissioners have extended their voluntary disclosure initiative for undisclosed income or funds held in banks and building societies to credit unions.

Taxpayers who had €100,000 or more in aggregate in credit union accounts (which included funds not previously declared for tax) at any time between 1 January 2005 and 31 December 2008 have until 31 March 2010 to make a voluntary disclosure.

• Persons who wish to make a voluntary disclosure will receive the following benefits:
  The penalty for underpaid tax will be substantially mitigated
• Their name and settlement amount will not be published by Revenue in the quarterly list of tax defaulters in Iris Oifigiúil
• Revenue will not initiate an investigation with a view to prosecution

Taxpayers who are already under enquiry or who failed to disclose these accounts in a previous investigation are precluded from making a qualifying disclosure.

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RENT TO BUY SCHEMES

Rent to Buy schemes provide incentives for individuals to purchase a property, using part or all of the rent paid, as a deposit. The most common variation of this scheme gives tenants the opportunity to live in the property for a trial period while paying rent and gives them a discount on the purchase price should purchase take place within an agreed period of time. While the prospective buyer is paying rent, he or she is entitled to claim rent relief. The current reliefs are as follows for rent paid in 2009:

Under 55:
Single Person: up to €400 (€2,000 x 20%)
Married Couple or Widowed Person: up to €800 (€4000x 20%)

Over 55:
Single Person: up to €800 (€4,000 x 20%)
Married Couple or Widowed Person: up to €1,600 (€8,000 x 20%)

The European payment services directive took effect on 1 November 2009. It removes many of the risks associated with paying direct debit. The new directive now requires banks to refund direct debits on request within eight weeks of payment. For example, if a client has a dispute with the ESB, that client can request the bank to refund all direct debit payments made to the ESB in the preceding eight weeks. It is not necessary to provide the bank with a reason and the money should be back in the clients account even before ESB is advised of the claim.

GOOD NEWS FOR START-UP CUSTOMERS

The Bank of Ireland has launched a new €26m fund to invest in start-up and early stage companies. In addition the fund will go to support patent and patent pending projects within Irish universities. This fund is part of a five-year Enterprise Ireland seed and venture capital programme. The fund will focus on the technology, green technology, food and financial services sectors, which are export focused.

TRAVEL AGENTS VAT MARGIN SCHEME

From 1 January 2010, VAT will be accounted for on the basis of the travel agent’s margin rather than on the full amount the travel agent receives for the supply of services. This EU scheme will enable a travel agent to account for VAT in one Member State on all the travel services that he/she has supplied. The place of supply is the place where the travel agent has established his or her business, or has a fixed establishment. The scheme applies to travel agents or undisclosed agents established in Ireland who supply travel packages. Other businesses may come within the terms of the scheme when they add accommodation or passenger transport to a package, e.g.:

• Organisers of sporting events, training courses, incentive travel or conference organisers
• Hotels buying in additional services for their guests and selling them on