The Republic's tax authority has led the way in the euro zone, offering businesses the most flexible possible approach in the changeover to EMU, the Revenue Commissioners said yesterday. From January 1st, companies and self-assessment taxpayers will be able to switch their bills to euros, but will not be obliged to do so until January 2002.
The Revenue Commissioners said it had tried to build the maximum flexibility into the changeover period, and would also allow taxpayers to switch some elements of their bills - such as VAT or employers' PAYE - while leaving others in pounds.
Yesterday, the Revenue Commissioners released a new booklet, called Revenue and the Euro - a Business Guide.
Initially, the agency had said it wanted to give taxpayers the opportunity to switch to the euro only at the start of each tax year, Mr Gerard Moran, strategy manager for the euro with the Revenue Commissioners, said yesterday. However, after consultations with software programmers and others, the agency decided to allow businesses to switch at any time.
"Unless you complete and return the appropriate election form, we will assume that you will continue to conduct your Revenue affairs in Irish pounds," the document tells businesses.
Once the change to the euro is made, however, businesses will not be allowed to revert to pounds.
"An irrevocable election to switch to euro will be required for each tax, duty and statistical return, except for Customs & Excise declarations, stamp duties and capital acquisitions tax," the Revenue Commissioners said.
