Ireland Taxonomy explained

 
01 Feb, 2020  Posted By Priyadarshini   Posted in Revenue
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Ireland is one country that has quite the confusing taxation policy, to begin with. Add the hurdle of compliance to the mix and you’ve got yourself a problem. In a previous blog of ours Ireland Gets Its Own Taxonomy we had summarized the details of the XBRL and the iXBRL – (in-line) the acceptable language in the word of financial reporting and tax compliance.  In Ireland and the UK, this language has been in use to submit financial reports and statements relating to Corporation Tax (CT1) filing for a few years now through the Revenue Online Service (ROS).

Often used tax or accounting concepts use particular labels that make information easily readable by humans and machines alike. The details of these labels is called Taxonomy. Think of it as a dictionary. Each tag is linked with the accounting term it denotes. And the tag itself reflects the standards known as Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). Through the years, there has always been a need to periodically update the taxonomy to ensure that in the process of complying with regulations, there is no data missing or lost. In pursuit of overcoming the subtle differences in accounting between the two island sister countries – UK and Ireland, the Financial Reporting Council (FRC) released the Irish extension in the 2019 taxonomy suite.

From June 2019, only iXBRL submissions tagged using the FRS 101 Irish Extension, the FRS 102 Irish Extension and the EU IFRS Irish Extension are being accepted. These new labels or taxonomies take account of changes to the accounting frameworks applicable in Ireland. A couple of examples below:

Taxonomy Schema Reference Applies to
FRS 101 Irish Extension https://xbrl.frc.org.uk/ireland/FRS-101/2019-01- 01/ie-FRS-101-2019-01-01.xsd For periods commencing on or after 1 January 2018
FRS 102 Irish Extension https://xbrl.frc.org.uk/ireland/FRS-102/2019-01- 01/ie-FRS-102-2019-01-01.xsd For periods commencing on or after 1 January 2019
EU IFRS Irish Extension https://xbrl.frc.org.uk/ireland/IFRS/2019-01-01/ieIFRS-2019-01-01.xsd For periods commencing on or after 1 January 2018

 

The Tax and Duty Manual Part 41A-03-01 has been updated to reflect the release of three new iXBRL taxonomies. This lists the available taxonomies and the accounting periods for which they are relevant. Where available, the taxonomy is aligned to the accounting framework under which the Financial Statements have been produced are to be used.

For example, a company’s Financial Statements for the year ended 31 December 2018 have been prepared in accordance with FRS 102, then the FRS 102 + DPL taxonomy should be used. The same company’s 2019 Financial Statements should be tagged using the FRS 102 Irish Extension, which takes account of changes to the FRS 102 accounting standard.

Usually, if you’re looking to file Corporation Tax, you will require a software to produce the Financial Statements in iXBRL format. There are no plans in the future to develop a ROS solution for compiling the iXBRL files through input screens either. However, the ROS has developed then capability to accept iXBRL files that have been created using externally sourced software.

And that is where, Data Tracks comes into the picture. We have the capability to provide you with all the assistance you need to be prepared to face the task of compliance, head on! Interpersonal consulting sessions, technical support and even until execution, we are always by your side ensuring a seamless iXBRL tagging journey. Get in touch with us for a free consultation today!

 

 

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