CCH Corporation Tax 2015.3 - Release Notes
Release Highlights
The 2015.3 release launched our go forward Irish Corporation Tax system which replaced the legacy Compad software and includes 2015 CT1 tax return filing. This document provides a summary of the system, and of the changes that have been introduced in the CT1 form.
Overview of the system
The software system is based on the ROS layout and is intended to provide a greater focus on meeting tax management requirements within your practice. The main application window provides a summary dashboard highlighting all client companies with outstanding returns, returns not created as well as the status of their returns such as 'Sent to client for signing' or 'Submitted'.
Client companies' CT1 data input is designed to emulate the ROS system, breaking the tax return down into the same sections and sub-sections as are provided for in ROS. When inputting tax data you can configure the system to display the data for current and previous Accounting Periods side-by-side, helping to ensure that nothing is missed. The corporation tax information that you input for your clients is stored within the application's database; the tax computation and the display of the CT1 form are carried out at the touch of a button using the ROS web service - the system uploads the data to Revenue's online calculation engine; the web service then returns the computation and summary Form CT1 in a similar format to that used by ROS. Because the calculations are carried out by ROS, this eliminates differences arising in the calculation when the CT1 is actually filed.
When the tax return is signed off by your client, you can click the Create CT1 button and the system will then create the .ct1 file for submission. The package can be configured to automatically open the ROS login portal so that you can proceed immediately to upload the file. A conversion utility has been included in this release of the software to allow you to import your existing list of Company Names and Client Codes. It was not possible to import historic tax return data from the legacy Compad product, but you can import data using previous years' saved ROS CT1 files. This can also include a rollover of the data sources so that you can quickly and easily start work on your client's new Corporation tax return.
Detailed guidance on this is available in our Compad data conversion guide. For existing users of our legacy Corporation tax software, we will provide an open ended licence to enable you to view previous year's tax data. A full User guide for the system is available here.
Installation
Please pay particular attention to the installation. To help you with this we have provided a Standalone Installation Guide and a Server Installation Guide
There are three basic options for installing the software:
Self managed option
You can choose to install the software yourself using our installation guides and your own in house expertise; for standalone systems the installation is relatively straightforward, however for networks it may be more complex and we are therefore offering two very reasonably priced remote installation service options to help you get up and running as efficiently as possible:
Part managed option €95.00 + VAT Under this option we will
- Install the software, the database, and all other required components on your server.
- Install on one workstation PC
- Link that PC to your server database and
- Show you how to complete the setup for any other workstations on your user network.
Fully managed option €295.00 + VAT
This will include:
- Installing the software, the database, and all other required components on your server
- Installing on all your workstation PC's and
- Linking your PC's to your server database
Hardware and Software Requirements
- Existing users of our legacy CCH Compad product should ensure version 2014.3 is installed; this is required to ensure that your data can be converted over to the new system.
- You should also make a backup copy of your CCH Compad database before starting, or confirm that you have a backup to which you can revert in the unlikely event it is necessary.
- Before proceeding with this install ensure your PC(s) meet the minimum hardware and software specifications. Full details can be found in the System Requirements Specification.
Note: As with all software upgrades, we cannot over-emphasise the importance of taking a backup of your data before performing the upgrade. If you are in any doubt about this or require assistance in doing so, please create a case and our CCH Software Support team are available to help.
CT1 changes
ROS filing for accounting periods ending in 2015
This release provides the facility to create a 2015 ROS compatible form CT1 Tax Return file, which can be uploaded to the Revenue’s ROS system. The file created from the data held in CCH Corporation Tax IE’s database is in accordance with the file format schema as supplied by Revenue for 2015 Corporation tax returns.
Schema changes for 2015
In addition to the normal annual changes to the CT1, Revenue have implemented a complete restructuring of the xml schema definition for the 2015 CT1 return. This was carried out to ensure compatibility with other internal Revenue Systems. This restructuring entailed the addition of new layers of sub-elements, distribution of existing attributes within these new structures, modification of attribute names and the addition of new complex data types.
Tax return changes
Below we have given a brief description of the main changes to the tax return for 2015, showing how they are handled in the new system.
Company details - Mandatory disclosure
A new field has been added in the Company Details section to return the transaction number assigned by Revenue in respect of a transaction determined to be a disclosable transaction under the mandatory disclosure rules. The transaction number can be input by selecting the Company Details link under the main Company Details section.
Accounts extract data and iXBRL
Note: the iXBRL changes described below have also been applied retrospectively to the format required for 2014 CT1 returns - this will affect any remaining returns to be filed for Accounting Periods ending in 2014. Also, when viewing or calculating a 2014 return within the new system, the relevant iXBRL fields must be completed, otherwise the data will not validate using the ROS web service.
There are new disclosure requirements due to the roll-out by Revenue of mandatory filing of iXBRL Financial Statements for Corporation Tax. Phase 2 of this process extended iXBRL mandatory filing to all Corporation Tax Payers unless they meet the three criteria below; it applies to Corporation Tax returns filed from 1 October 2014 for accounting periods ending on or after 31 December 2013.
All three of the criteria below must be met for a company to be excluded from the Phase 2 iXBRL filing obligation:
- The Balance Sheet Total (aggregate of assets without deduction of liabilities) does not exceed €4.4 million;
- Turnover does not exceed €8.8 million; and
- The average number of persons employed does not exceed 50
These changes are reflected within the CT1 form (Extracts from Accounts section) as follows:
- The existing tick box to indicate if you are choosing the option to submit financial statements in iXBRL format is removed
- You must select one of the following five iXBRL options that apply to the company:
1. The company is not mandated to file financial statements in iXBRL format but is electing to do so
2. The company's affairs are dealt with in Revenue’s Large Cases Division or it is not excluded from filing financial statements in iXBRL format under options 3, 4 or 5 below
3. The company's tax affairs are not dealt with in Revenue’s Large Cases Division and it is not mandated under phase 2 to file financial statements in iXBRL format because the three Phase 2 criteria (see above) apply and the company is claiming an exclusion:
4. The company is inactive and there is no income or expenses on the Profit and Loss account and there is a balance sheet movement of less than €500.
5. The company is in liquidation (not a voluntary liquidation where there are net assets for distribution).
If you have selected option 1 or 2 above, you are then required to indicate which category the company falls into to determine the minimum content and tagging in iXBRL returns required by Revenue. The company categories are as follows:
- Preparation and publication of financial statements required under (ROI) Companies Act (CA) - subject to CA Statutory Audit
- Preparation and publication of financial statements required under (ROI) Companies Act (CA) - not subject to CA Statutory Audit
- Preparation and publication of financial statements required under (ROI) legislation other than the Companies Act (e.g. Industrial and Provident Societies Acts 1893-2014)
- Tax Resident in ROI - not required to prepare and publish financial statements under legislation in country of incorporation or in ROI.
- Tax Resident in ROI - Preparation and publication of financial statements required under legislation in another jurisdiction (e.g. UK incorporated company bound by the UK Companies Act)
- Not Tax Resident in ROI - Operating a Branch or Agency in ROI
- Group Holding Company
All of the above fields are included in the software, select Trading Results, and then click the Extracts from Accounts link.
Capital Gains - Windfall gains
Windfall gains arising from the disposals of land made on or after 01/1/2015 are subject to capital gains tax at the standard rate of 33% rather than 80% as applied previously. For accounting periods ending in 2015, only gains arising in the 2014 part of the accounting period (if any) must be returned in this section as these continue to be taxable at the 80% rate. There are only two 80% fields to be completed - for such gains arising in the initial period (up to 30 Nov 2014), and in the final period (Dec 2014).
These can be input by selecting the Capital Gains Tax link under Capital Gains (Development Land)
System Administrator
Install and Upgrade
Please refer to the CCH Corporation Tax IE 2015.3 Install Guides for full installation instructions.