Third party returns: Revenue requirement to report information automatically

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Traders, businesses and companies are required to file returns to Revenue containing details of payments made by them to third parties for services provided.

Those required to file include:

• traders (including farmers)
• professionals and other people carrying on a business
• non-trading or non-profit making organisations or bodies (including charitable organisations and statutory bodies).

Revenue eBrief No. 106/19 issued on 28 May 2019, advised that the Tax and Duty Manuals on third party returns have been consolidated into Part 38-03-13 and updated. These are returns of information about certain payments made by traders and other persons carrying on a business activity, including statutory bodies. There are no material changes to procedures, however, the content has been amended for clarity and the avoidance of duplication.

It is important that traders (individual and companies) should ensure that their business records are adequate to supply the above information. They should ensure that persons providing services also provide their tax reference number (their VAT registration number or PPS number may be used).

It should be noted that where a taxpayer fails to deliver a true and correct return, they can be liable to a penalty of €3,000 and the withholding of tax clearance and/or repayments.

Who should make a 46G return?

Trusts, partnerships, and unincorporated bodies (including charities and statutory bodies), and self-employed individuals (including farmers and professionals) must return payments of the kind outlined below using a Form 46G. Companies must return the same types of payment using a Form 46G (Company).

What payments must be returned?

Subject to certain exclusions, details of the following payments must be returned:

 · Payments for services rendered in connection with the trade, profession, business etc., whether paid on the filer’s own behalf or on behalf of someone else;

 · Payments for services rendered in connection with the formation, acquisition, development or disposal of the trade or business;

· Periodical or lump sum payments made in respect of any copyright.

Where a consideration is given otherwise than in the form of money, particulars of the value and type of consideration should also be given.

The following payments need not be returned:

· Payments for services/activities which are not on the list set out in Appendix 1 of the manual;

· Payments to a single entity, where the aggregate of such payments in the period covered by the return does not exceed €6,000 in the period;

· Payments from which withholding tax has been deducted (e.g. payments subject to PAYE, fees paid subject to withholding tax, payments subject to Relevant Contracts Tax, etc.);

· Payments for services in which the value of any goods provided as part of the service exceeds two thirds of the total charge;

 · Payment to non-residents (however, where a Third Party operates from a business or private address in the State, he or she should be regarded as - resident);

· Payments for essential utilities such as electricity, gas, and telephone.

What details must be given on a 46G return?

Filers must submit the following details:

· Identifying details of payee:

-  Full name/full title of company

-  Private address o Business name (if any)

-  Business address

-  Tax Reference Number

· Total amount of payments made, or value of consideration given.

· Nature of consideration, if not money.

· Nature of services or rights provided.

· An indication of whether the figures are VAT inclusive or exclusive.

How should the 46G return be filed?

46G returns should be filed electronically using the Revenue Online Service (ROS). The 46G return can be completed online, or by downloading the Revenue Offline version of the returns, or in MS Excel format. In all cases the return should be filed through ROS.

If you require any further details on filing third party returns on form 46G to Revenue or in relation to our audit and accounting services please contact OSK on 01 439 4200.

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