The filing of iXBRL financial statements now forms part of the corporation tax compliance process. Therefore, as well as filing a Form CT1 via ROS, a taxpayer now also has to file its iXBRL financial statements via ROS.
The iXBRL requirement applies to all companies in respect of tax returns filed on or after 1 October 2014, relating to accounting periods ending on or after 31 December 2013 unless the company meets all three of the following exemption criteria;
- The Balance Sheet total of the company does not exceed €4.4 million;
- The turnover of the company does not exceed €8.8 million;
- The average number of employees does not exceed 50.
Revenue have confirmed that up to 31 October 2015 the balance sheet total of a company will be based on the “total net assets” of the company. This is the total assets of the company less the company liabilities.
However, after 31 October 2015 the balance sheet total must be calculated based on the “Aggregate of Assets without deduction of liabilities”. This amounts to the total assets of the company without deduction of liabilities.
Therefore, this new method of calculating the balance sheet total of the company is likely to bring many more entities within the requirement to file iXBRL financial statements where the balance sheet total under the new calculation method exceeds the €4.4million threshold.
A recent publication from Revenue in respect of iXBRL has also noted the following;
- An additional 21 days after the corporation tax return filing dates is applied to the filing of iXBRL statements;
- Where financial statements are prepared for a long accounting period (in excess of 12 months) the iXBRL financial statements are only required to be filed with the CT1 for the latter period;
- From 1 December 2015 a fully tagged detailed Trading & Profit & Loss Account must be included with every iXBRL return filed.
If you were unaware of these upcoming requirements and wish to get a greater understanding of what is involved or the steps you need to take to mitigate risk of non – compliance, please do not hesitate to contact us