There have been significant changes to the administration of CAT. The main ones are

• previously, returns and payment for a gift or inheritance were due 4 months after the "valuation date" e.g grant of probate.the new return date is 31st October for all dispositions in the previous 12 months.
• after 14/6/2010 electronic returns will be required for all but the most basic returns.
• Your solicitor or tax advisor can assist in this area.

The issue of locums such as doctors, opticians etc has been the cause of much debate. The current revenue position appears to be that for 2010 onwards locums must be treated as employees.

If different treatment is revealed at an audit they will seek to have the net payments to the locum grossed up.  Practices employing locums need to act on this to avoid significant costs.

Revenue continue to focus on cash businesses. They continue to do random visits to cash businesses. This includes

• inspection of tills including data extraction
• making a purchase and returning later to see that it was recorded
• questioning of employees

Remember, within reason, they must allow the proprietor to be present rather than question junior staff.

You can also, if time permits get your accountant/tax advisor to attend

These visits are not a formal Revenue Audit. These must always be preceded by am audit letter

Tills

Where tills are used you must

retain till rolls or electronic backups for 6 years

Z readings alone are insufficient

transactions must clearly show dat, time and amount

Voids/refunds should not be suppressed on reports

The Revenue leaflet issued recently details requirements http://www.revenue.ie/en/tax/vat/leaflets/cash-registers-info-leaflet.pdf

Elderly Relatives

Many taxpayers have payents relating to elderly relatives. some key points are

Employing a carer

Payments to carers are deductible at the higher rate up to €50,000 per annum

Payments to elderly/incapacitated relatives

Consider using covenant mechanisms to maximise deductibility and tax credits. Professional advice should be used

Trusts

For significant sums these can be useful for incapacity situations. Legal and tax advice is however, essential