Supreme Court Decision in ACC Loan Management DAC Case in Sight

We don’t often comment on legal cases but there is a judgement due to be given by the Supreme Court next week which could have long lasting consequences for various groups as well as litigation into the future.  You should keep an eye out for the judgement when it is issued. 

The case is ACC Loan Management DAC V Rickard & Ors and is a long running case.  Briefly, the back ground to the case is that ACC got a judgement against borrowers and in 2011 succeeded in getting a receiver by equitable execution appointed over Single Farm Payments.  Following changes in the farm support payments structure, the appointment of the receiver was challenged.  ACC succeeded in the High Court and again in the Court of Appeal. 

The Supreme Court will now give its decision on the continued appointment of a receiver by equitable execution over Basic Farm Payments.  The main question in this case will be whether or not the Basic Farm Payments are future income payments.  If these payments are deemed to be future income the existing case law says that a receiver cannot be appointed over income. 

There should be answers to other technical questions about the Courts’ power to appoint a receiver over equitable or legal interests.

For details on the sitting see below link:

Enforcement Powers Seminar

Our Director of Restructuring Services, Barry Donohue will be discussing and presenting a seminar on enforcement powers together with Cork County Sherriff, Sinead McNamara on the 1 May 2019 in UCC’s recently renovated Cork University Business School (CUBS) historic building in the heart of Cork’s Business District at 1, Lapps Quay, Cork.

Barry has over 30 years’ experience working with financial institutions, regulatory bodies, creditors and Revenue authorities on enforcement and restructuring assignments. He is currently trustee in bankruptcy over a number of Irish-based bankruptcies.

Employment Law Updates

The Employment (Miscellaneous Provisions) Act 2018 came into force on the 4 March 2019. The primary purpose of the Act is to limit the use of zero hour contracts and provide better protection to employees on casual contracts. You can check out the key changes on the DEASP website by clicking the link below:



Are you ready for PAYE Modernisation?

From 1 January 2019 Revenue will be rolling out a new real-time system which will completely change the way PAYE currently operates. The importance of understanding and correctly adopting the new system cannot be underestimated as non-compliance or continuous errors will likely result in Revenue intervention.

What is the aim of the new system?

  • Improve the streamlining of current business processes
  • Reduce the administrative burden currently experienced by employers to meet their PAYE reporting obligations.
  • Ensure Revenue, employers and employees have the most accurate, up to date information relating to pay and statutory payroll deductions so that the right amount of tax is being deducted at the right time from the right employees.

What is changing?

  1. Employers will have to report payroll information to Revenue on or before making a payment to an employee.
  2. P60s, P45s, P30s, P35s and End of Year Returns will be abolished.
  3. The current tax credit certificate (P2C) is being replaced by a Revenue Payroll Notification (RPN) which will provide employers with all necessary information regarding tax credits and cut-off.
  4. An “Employment Identifier” will be used to distinguish between multiple employments of an employee with the same employer and different periods of employment with the same employer.
  5. An “Employer Reference Number” must be reported to Revenue for every payment made to an employee who has not provided a PPSN.
  6. Revenue will issue monthly statements to employers which will show a summary of total liability.

Getting PAYE Modernisation ready!

Employers should: –

  1. Register all their employees with Revenue
  2. Have the right PPS numbers for all employees
  3. Have up to date tax credit certificates for all employees
  4. Complete the P45 process for any employees no longer employed with them
  5. Have adequate controls in place to ensure benefits/notional pay are being accurately calculated during the year
  6. Have their ROS digital certificate ready for the 1 January 2019.

Anything else to note?

  1. It is not recommended to have a net pay arrangement with employees. We have no option but to use the credits and cut off provided to us by Revenue, and therefore employers with net pay arrangements can be exposed to an additional liability due to reallocation of credits by the employee.
  2. Grossing up of drawings to repay overdrawn directors’ loans will result in us having to amend prior periods rather than filing a supplementary return (which previously was the option selected) and will inevitably increase the risk of interest and penalties on late filing plus will draw attention to the BIK that was deemed to be provided to the director when they received the interest free loan.

If you have any queries or concerns with respect to the new PAYE Modernisation system, or should you require assistance with your payroll, then please call us on 021-4810035.