Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Where the financial statements include the correction of an error such as a change from an invalid basis to a valid basis, existing practice based on case law principles provides that the accounting profits must be computed on a new valid basis. Any adjustments which need to be made in order to compute taxable profits on a valid basis must be done by changing the tax computations for those periods. However, the tax computations may only be amended subject to the normal statutory time limit for the correction of errors.

The Finance Bill 2017, as initiated, distinguishes between material or fundamental errors and non-material and non-fundamental errors which are recognised in the current year profit and loss accounts. However, the Finance Bill 2017 as initiated incorrectly treats material or fundamental errors in the same way and this is the subject of this amendment No. 36.