6.6 Taxation Requirements

15 May 2009


Tax Registration

You should advise your local tax office when you start in business. You can do this by filling in one of the following forms:

  • Registration Form TR1 (sole traider/partnership) / TR2 (companies)
  • PREM Reg. - Employer (PAYE /PRSI ) Tax Registration Form

 

 

Registration Forms:

Form TR1 TR2 PREM Reg.
Tax Income Tax
PAYE/PRSI
VAT		 Corporation Tax
PAYE/PRSI
VAT		 PAYE/PRSI
(payroll taxes)
Status - Individuals
- Partnerships
- Trusts
- Unincorporated Bodies		 Limited Company Persons/company already registered for income/ corporation tax


Shortly after registration you may receive a visit or you may request a visit from a Revenue official to assist you in operating the tax system. Any difficulties or queries will be dealt with and general assistance will be given to help you comply with your tax obligations. You can request a "New Business Visit" from your local district office. A NGB might not be obliged to pay all of the taxes listed above. Your local tax office can advise on which taxes apply to your organisation.

 

 

Revenue On-line Service (ROS)

The Revenue commissioners have a website www.revenue.ie that contains all the taxation compliance information required by any business. Revenue also has a Revenue on-line service (ROS) www.ros.ie where relevant taxes can be submitted and paid on line.

  • Once registered with ROS, you can access your tax details and file returns on-line.
  • ROS is available 24 hours a day, 365 days a year. It is easy, instant and secure.
  • For further details on ROS, visit the website at www.revenue.ie or call the ROS Information Desk at LoCall 1890 20 11 06.

 

 

Tax Clearance

A Tax Clearance Certificate is a written confirmation from Revenue that a company's tax affairs are in order at the date of issue of the Certificate. A Certificate may be issued to a customer who has tax arrears provided such arrears are covered by an instalment arrangement agreed with Revenue.

The requirement to produce a Tax Clearance Certificate usually arises in the context of an organisation seeking State money (e.g. Government contracts, grants) in excess of €10,000.

Customers requiring a Tax Clearance Certificate should ensure that their tax affairs are in order before submitting an application for a Certificate.

Assuming a customer's tax affairs are in order, the TC1 form can be obtained from the Revenue Commissioners.

A NGB should normally require a General Tax Clearance Certificate. Sport Ireland may get access to the Revenue Commissioner's database of organisations with tax clearance, if we receive prior authorisation from NGBs.

 

 

Register as a Tax-Exempt Sporting Body

Relief from income tax and corporation tax is available for certain sporting bodies. In order to avail of these exemptions the "Approved Body of Persons" must be established for and exist for the sole purpose of promoting athletics or amateur game sport and whose income is applied for the sole purpose of promoting athletics or amateur sport. Sports organisations must apply to the Revenue for this exemption by submitting a completed Declaration to the Revenue Commissioners.

 

 

Choose a Solicitor

A Solicitor should be appointed to represent the NGB.

 

 

Choose an External Auditor

The Board should appoint a member of a recognised professional body to conduct audits on the NGB's financial procedures and its accounts. See the Chartered Accountants Website for a list of its members. All of the members listed on this are registered Auditors, and there would be other Auditors included in the Golden pages.

 

 

Sport Ireland Requirements

Listed below are some important steps the NGB should take to ensure compliance with Sport Ireland requirements.

The terms and conditions governing the NGB grant will issue with the annual grant application form. NGBs wishing to avail of grant-in-aid are required to sign up to those terms and conditions. It is Sport Ireland's practice to alert NGBs to any major changes. However it is the responsibility of the NGBs to be familiar with and adhere to all terms and conditions. Please note, however that these requirements are subject to change. To receive a copy of the most up to date terms and conditions that apply to funding, please contact the NGB Support Unit on 01 8608800.

Sport Ireland have collated a list of the most important requirements which the NGB should note when compiling annual accounts. The terms and conditions set out in each year's grant application form exactly what information should be submitted in the annual accounts.

 

 

Submission of Annual Accounts:

  • The NGB must submit a copy of the annual statement of the accounts after the end of the current accounting year, i.e. a copy of the NGB's accounts for 2016 must be submitted to Sport Ireland by the end of July 2017.
  • The annual statement of the accounts must;

    (a) include all financial transactions of the organisation during the course of the accounting year in question;
    (b) identify separately and categorise each grant paid by either Sport Ireland or any other body during the accounting period in question;
    (c) include a Balance Sheet, Profit and Loss (Income and Expenditure) Account and a full set of detailed notes.
  • The NGB must retain all receipts and documentation in relation to grant expenditure for inspection by Sport Ireland.
  • All grants received from Sport Ireland must be separately identifiable as income in the NGB's annual statement of accounts. This income should be referred to as "Sport Ireland Grant".
  • The expenditure of these grants must also be included in the annual statement of accounts using the headings set out in the grant application form, e.g. International Training and Competition. Any unexpended grants at the year-end should be included in the Balance Sheet as Deferred Income.
  • Accounting policies for the treatment of grants must be disclosed in the annual statement of accounts.
  • Organisations in receipt of the following total amounts must include in their financial statements:

    (a) below €25,000, an independent accountant's report from an accountant with a recognised accountancy qualification;
    (b) in excess of €25,000, accounts fully audited by a registered auditor to include a signed audit opinion specifying the auditor's name and address;
    (c) in excess of €200,000, a statement from the NGB's auditor that each grant was expended for the purpose for which it was intended by Sport Ireland.
  • The NGB shall give appropriate public recognition to Sport Ireland for the funding provided under the grant scheme. This applies to publications, websites, letterheads, etc.
  • The NGB shall also give appropriate public recognition to the National Lottery for the funding provided under the Grant Scheme. Again this applies to publications, websites, letterheads, etc.


We would strongly advise you to contact your auditor and/or accountant and inform them of the financial reporting terms and conditions contained in these guidelines in the annual grant application process.