In this second and final part of our myth busting mini-series we’ll be looking at 3 more common misconceptions regarding iXBRL for Ireland.
Myth 3: Non Resident Companies Don’t Need To File in iXBRL
The Truth: A company that is not resident but is trading through a Branch or Agency is required to submit accounts containing sufficient information to enable the chargeable profits of that company’s trade to be determined. In practice Revenue will require an iXBRL Profit and Loss account in respect of all companies trading through a branch or agency and a balance sheet to the extent that one is prepared in respect of the branch or agency. Filers need to be aware that these will still need to pass Revenue Online Service validation; for example there are a number of mandatory-tag items which will be required in order for submission to succeed.
Next Steps: Email a meeting request to email@example.com and I’ll help you identify the most suitable method of dealing with the number and type of entities you have in your group.
Myth 4: Franchisees have to file in iXBRL for 2013
The Truth: Whilst the company selling the franchises may itself qualify as a Large Cases Division company and therefore be affected by the mandate, franchisees are considered separate to the franchise seller and therefore do not have to file in iXBRL just because the seller does. Most franchisees will not fall within the LCD and therefore will only have to file in iXBRL for the 2014 year end.
Next Steps: If you are a franchisee and you wish to receive accurate information about preparing your business for the 2014 iXBRL mandate affecting all other Irish businesses, email firstname.lastname@example.org and ask to be added to that list.
Myth 5: Section 17 Exclusion Rules
The Truth: In a consolidated Group certain subsidiaries can avail of Section 17 and do not have to file financial statements with the Companies Registration Office (‘CRO’). There are no absolute in/out rules as to whether exemption will apply to these subsidiaries in relation to the new IXBRL Revenue filings as well. Revenue say exceptions are possible for some but this will depend very much on the specific circumstances involved including the method you are using to supply your other iXBRL filings.
Next steps: If you think some of your entities should be exempt from iXBRL filing under section 17, please contact Revenue ASAP to discuss this and verify whether this is the case for your business or not.