Revenue Issue Letters to 500,000 Taxpayers on Undeclared Offshore Assets
The penalty for undeclared income and gains is 100% of the tax on the undeclared amounts. However, where a person makes a qualifying voluntary disclosure to Revenue reduced penalties apply. In addition, details of the settlement amount are not published and Revenue will not consider prosecution. From 1 May 2017, any disclosure made to Revenue […]
Finance Act 2016
Introduction Finance Act 2016 was signed into law by the President on 25 December 2016. The Act contains a number of positive measures from a business perspective as follows: • Special Assignee Relief Programme (SARP) has been extended to the end of 2020 • Foreign Earnings Deduction (FED) has been extended to the end of 2020 and the […]
Budget Briefing 2017
Minister Michael Noonan delivered his sixth budget since becoming Minister for Finance in 2011. Against a backdrop of a reduced GDP growth forecast for 2017 of 3½% due to Brexit, he has given a little to everyone. Capital Taxes Inheritance and Gift Tax Thresholds • The tax free thresholds have increased as follows: Category A […]
New Revenue Staff Guidelines on RCT Penalties
The Irish Taxation Institute has circulated a copy of Internal Guidelines issued to its staff by Revenue on how to deal with the relevant contracts tax (RCT) penalty regime and the basis for penalty mitigation. A principal who makes payments to subcontractors within the RCT system is obliged to notify Revenue of the intention to […]
Revenue Annual Report for 2015
The Revenue recently issued their annual report for 2015. Some interesting facts which are contained in the report are as follows: • Net tax receipts for 2015 were €45.78 billion compared with €39.4 billion for 2014. Taxes on income, which include USC, DIRT, dividend withholding tax, accounted for 40% of overall net receipts with the other […]
Finance (Tax Appeals) Act 2015
The Finance (Tax Appeals) Act 2015 (the Act) was enacted on 25 December 2015 to bring into effect the long awaited reform of the tax appeals system. The provisions of the Act are due to come into effect on a day appointed by the Minister for Finance. The necessary statutory instruments were issued on 26 […]
Interest Paid By Companies and To Non-Residents
Tax law provides that, subject to certain exceptions, companies are required to withhold tax at 20% from interest payments and persons other than companies are required to withhold tax at 20% from interest paid to non-residents. The requirement to withhold tax does not apply to interest paid to banks carrying on a banking business in […]
Deadline for Accessing AVCs Fast Approaching
A reminder that the deadline for pre-retirement access to AVCs is 26 March 2016. You can access up to 30% of the value of your AVCs. Amounts accessed are subject to income tax but not PRSI or USC. This can be useful if you require access to cash or if your fund is approaching the […]
Budget Briefing 2016
Introduction The Minister for Finance introduced the final Budget of the 31st Dail. He advised that it is considered that as a result of this Budget that the recovery will be felt in every home in the country. The only taxation increase introduced is an extra 50 cents on every packet of standard cigarettes. The […]
Employee Subsistence Allowances
Employers may reimburse employees for business expenses incurred without deducting PAYE from the payments made in two situations: (a) Where the payments are made based on vouched receipts provided by the employee; or (b) Where flat rate allowances are paid which do not exceed the rates paid to Civil Servants or which are paid in accordance with […]
Tax Treatment of Exchange Traded Funds*
Revenue have issued a Guidance Note on the tax treatment of Exchange Traded Funds (ETFs) outlining their view of the tax treatment of income and gains from investments in such products with effect from 1 January 2014. Revenue’s view on the tax treatment is summarised in the following table: Place ETF is Domiciled** Income Gains […]
Budget Briefing 2015
Introduction Michael Noonan delivered his fourth Budget Speech to the Dáil today. The speech signalled the end of austerity with tax cuts for lower and middle income earners and the announcement of a corporation tax reform package. Higher earners will see the reduction of the top rate of income tax to 40% being mostly offset […]
Budget 2015 Predictions
Budget 2015 will be delivered by Minister Michael Noonan on Tuesday October 14 next. While the final Budget package is still in the process of negotiation, the Taoiseach has indicated that income tax reductions are on the cards for low and middle income earners. He could do this by reducing the marginal rate of tax […]
BEPS 15 Point Plan
Last week the OECD published an action list for the first 7 points of its 15 point plan on BEPS (base erosion and profit shifting). The purpose behind the BEPS project is for OECD Member States to agree a plan to ensure the business profits of companies are aligned to where the business activity takes […]
Pension Contributions
As the filing deadline for 2013 income tax returns draws close, it is a good time to consider whether you should make a pension contribution. In recent years, with the introduction of the pensions levy and the reduction in the standard fund threshold, many have been discouraged from making further pension contributions. However, it is […]
