Introduction. This is a summary guide to outline: Key issues for SPSV licence holders to be aware of

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1 etax Clearance for SPSV licence holders Introduction In December 2015 Revenue introduced electronic tax clearance (etc); this meant that from 1 January 2016, applications for paper tax clearance are no longer accepted. Applications for tax clearance must be made through the new etax Clearance system which is accessible through ROS or myaccount. An online etax Clearance Certificate will show the applicant s PPSN/Reference Number and Tax Clearance Access Number; both of which they should provide to a third party so that third party can verify their tax clearance. These tax clearance certificates will be reviewed and can be rescinded (or withdrawn) where a taxpayer is found to be non-compliant with their tax obligations. This is a summary guide to outline: the key issues for SPSV licence holders to be aware of the application process what is real-time assessment what the electronic output will look like and what is the ongoing review and verification of tax clearance Key issues for SPSV licence holders to be aware of Prior to applying:- applicants will need to register for ROS (self-employed/business applicants) or MyAccount (PAYE registered applicants). Further information on both ROS and MyAccount is on self-employed licence holders will require a live/current income tax registration licence holders who are employees will need their employer s Tax Reference Number all applicants will require the Tax Reference Number or Property ID of their other relevant connected parties Applications in etax Clearance will be processed in real time. Where customers and their connected parties are tax compliant the customer will receive a Tax Clearance Access Number. etax Clearance will produce electronic output - in ROS or myaccount and customers will have the facility to print their tax clearance certificate from the screens, if required. Holders of the SPSV driving licence and holders of an SPSV vehicle licence are required to prove tax compliance for SPSV licensing purposes. 1

2 An agent (or accountant) can apply for tax clearance on behalf of a client through ROS but myaccount does not have an Agent facility, so the applicant using myaccount is applying for themselves only. Connected parties Tax clearance processing assesses both the applicant s tax affairs and those of any connected parties. For SPSV licence holders, their potential connected parties include:- spouse/civil partner properties partners partnerships or companies employer (for some SPSV drivers); as relevant. In order to complete the application, the applicant will require the Tax Reference Number or Property ID of their relevant connected parties. Application process What follows is a walk-through of the application process for the typical applicant. (Note, however, that applicants with more complex tax affairs may be presented with additional screens to verify their tax records.) Applicants will be asked to review the details held on file by Revenue, this includes any connected parties. If any of those details are incorrect, the applicant should get those details corrected prior to proceeding. If the details are correct then the applicant should click on Next. Figure 1 Review Your Details 2

3 Applicants will be asked to select the reason why they are applying for a tax clearance certificate. If you are self-employed follow the directions below, click here if you are an employee. Self-employed After selecting Licence, a self-employed applicant should select Small Public Service Vehicle (SPSV) license holder (Self Employed/Business). Please note that the system will then verify the applicant s income tax registration; if the applicant does not have a valid income tax registration they will be directed to register for income tax before proceeding further. Figure 2 - Selection for SPSV (Self Employed/Business) 3

4 Employee An applicant licence holder who is an employee should select Small Public Service Vehicle (SPSV) Driver license holder (Employee) from the screen. Employee applicants will be asked for their Employer Tax Reference Number which the system will validate prior to proceeding. Figure 3 - Selection for SPSV (Employee) All applicants will be asked to confirm if they are a member of any partnerships prior to proceeding. If you are a member of a partnership you will be asked to supply details of this partnership before a tax clearance certificate issues. Clicking Next will open a screen for you to supply the details of any partnerships or if you are not a member of a partnership it will open up the summary screen. Summary The summary screen outlines the application and the recorded connected parties. All applicants will be asked to accept a declaration confirming the following two assertions. The information provided in this form is true and correct to the best of my knowledge and belief. I have included all information relevant to this application. I also confirm my agreement that by completing this application and by providing both my PPSN/Tax Reference and my Tax Clearance Access Number to a third party, that that third party may verify my Tax Clearance Certificate. Once the applicant has accepted the declaration, their application can be assessed. 4

5 Figure 4 Application Summary Real-Time Assessment Assessment for a typical applicant will take a couple of seconds. If the applicant s tax affairs are in order they will be presented with their electronic Tax Clearance Certificate on the screen. It will contain two key pieces of information; namely the PPSN/Reference Number and the Tax Clearance Access Number. The applicant should ensure they take note of both of these numbers, as the NTA and/or An Garda Síochána may require them in the future. The existing NTA process for checking tax clearance directly via a secure link with Revenue will remain. What does the electronic output look like Revenue will not be printing tax clearance certificates. However, the applicant has the option to print the screen results if they want to have a paper copy of either the electronic tax clearance certificate or the refusal reasons. 5

6 Figure 5 - etax Clearance Certificate If the applicant s tax affairs are not in order, they will be notified that their application for a tax clearance certificate has been refused. They will be presented with the reasons why their application was refused. In order to obtain a tax clearance certificate, the applicant will need to put their tax affairs in order by dealing with the outstanding issues. They will also need to ensure that any outstanding issues are addressed in the tax affairs of any connected parties. After addressing any outstanding issues, they will be required to submit a new etax Clearance application. 6

7 Figure 6 - etax Clearance refused Ongoing re-assessment and ongoing verification As part of etax Clearance an applicant will be periodically re-assessed in a given year to determine if they have kept their tax affairs in order. Applicants who are no longer compliant will have their tax clearance certificate rescinded. Should this occur, they will be informed that their tax clearance certificate was rescinded. Depending on which system the applicant used to apply for etax Clearance, the notification will be sent to either their ROS inbox or to MyEnquiries in myaccount. Applicants who have their tax clearance certificate rescinded will be informed of the reasons it was rescinded. Once those issues are sorted and their tax affairs are in order, the applicant must submit a new etax Clearance application. Public sector bodies will carry out ongoing and periodic verification of an applicant s tax clearance certificate. Section 95 of the Finance Act 2014 provides for real-time ongoing tax clearance and is the legislative basis for the changes to the tax clearance system outlined in this guidance document. June