CCAB-I, recently wrote to the Minister for Finance, Paschal Donohoe, on
aspects of the Finance Bill 2021 which require amendment. A key issue is the requirement for claimants of Working from Home Relief under the new section 114A to provide details of bills to Revenue to validate a claim. The CCAB-I notes that there is no distinction in the legislation to accommodate self-assessed taxpayers who provide information as and when required under verification checks.
The CCAB-I also raised concerns that the new interest limitation rules operate a cliff-edge de-minimis amount of €3 million which will give rise to substantial additional tax where the taxpayer breaches the threshold.
The correspondence notes that many of the measures introduced under Finance Bill 2021 are helpful to businesses such as the expansion of the Tax Debt Warehousing Scheme to proprietary directors who are impacted by the provisions of section 997A TCA 1997 and the extension of the Employment Wage Support Scheme. The letter goes on to note that Working from Home Relief must be amended to align with the self-assessment system which does not require the automatic provision of documentation on submission of tax returns. The CCAB-I also call for important refinements to the Interest Limitation legislation and asks the Minister to bring forward legislation on the taxation of leasing transactions.
The Finance Bill is currently before Dáil Éireann, Third Stage.