New Tax Clearance System
Tax Clearance is confirmation from the Revenue Commissioners that an organisation’s tax and customs affairs are in order at a particular date. From the 1st January 2016, Revenue will be changing their tax clearance application and verification systems. This is to be known as eTax Clearance. Revenue will move to providing for real-time ongoing tax clearance.
With electronic Tax Clearance, real-time on-going review means that an organisation’s tax clearance status will be re-assessed at different stages throughout the year and an organisation’s clearance certificate can be withdrawn if their tax affairs are not kept in order. Paper Tax Clearance Certificates will no longer be issued for a 12 month period.
Please note if you have sent your TCAN details to Pobal and you are still seeing a red flag for your Tax Clearance status this does not necessarily mean Pobal have not received the information or that you will not receive payment. The PIP red flag system is based on the previous paper based system and it will take a number of weeks before the red flag system can be updated on PIP to match the new eTax Clearance system.
So what does this mean for Early Years Services?
- Services must apply online to receive a Tax Clearance Access Number (TCAN). In general most services as they are regarded as business/self-employed will be doing this through Revenue Online Service (ROS).
- Further information on ROS can be found at www.revenue.ie and http://www.revenue.ie/en/online/ros/index.html . (If you use an accountant you may also get them to apply for this on your behalf through ROS).
- Following the ROS application process for eTax Clearance, if the applicants tax affairs are in order a Tax Clearance Certificate will appear on the screen. This contains two key pieces of information; the PPSN or Tax Reference number and the Tax clearance Access Number which together give permission to a third party (Pobal) to verify an applicant’s tax status.
- Pobal are requesting that you forward these two numbers on the Organisational Details Template, alongside the name of the organisation and the service DCYA reference number. This form must be returned to firstname.lastname@example.org
It is your responsibility to become familiar with this new eTax Clearance process and to forward this information on to Pobal to ensure there are no delays in Pobal making payments to services.
Further information on eTax Clearance can be found at: