My 2013 Tax Return: Which Exchange Rate Is Best?

January 21, 2014

If you have income denominated in a non-Euro currency, you may wonder which is the most appropriate exchange rate to use when preparing your 2013 tax return and calculating your tax liability.

Revenue have just published their official exchange rates for a range of currencies for 2013, based on Central Bank rates.

These are as follows, along with  the corresponding rates for earlier years.

Average Market Mid-Closing Exchange Rates v. €
2010 2011 2012 2013
UK Pound Sterling GBP 0.85784 0.86788 0.81087 0.84926
US Dollar USD 1.3257 1.392 1.2848 1.3281
Other Currencies
Australian dollar AUD 1.4423 1.3484 1.2407 1.3777
Brazilian real BRL 2.3314 2.3265 2.5084 2.8687
Canadian dollar CAD 1.3651 1.3761 1.2842 1.3684
Chinese yuan CNY 8.9712 8.996 8.1052 8.1646
Danish krone DKK 7.4473 7.4506 7.4437 7.4579
Indian rupee INR 60.5878 64.8859 68.5973 77.93
Japanese yen JPY 116.24 110.96 102.49 129.66
Norwegian krone NOK 8.0043 7.7934 7.4751 7.8067
Russian ruble RUB 40.2707 40.8846 39.9262 42.337
Swedish krona SEK 9.5373 9.0298 8.7041 8.6515
Swiss franc CHF 1.3803 1.2326 1.2053 1.2311

Revenue Foreign Currency Euro Exchange Rates for 2013 Tax Returns

Lloyds Accounts

A special rate applies for conversion of Lloyds Account amounts from sterling to euro. This is based on the sterling mid-closing rate on the last market day of each calendar year, as per the Central Bank. The rate for 2013 is Stg £1 = €1.19947.

The above figures are detailed in today’s Revenue eBrief.

 


Contractor Appeals Hit Revenue Tax Project

January 20, 2014

The Sunday Business Post yesterday reported that the Revenue’s ongoing National Contractors Project has run into problems, as increasing numbers of contractors formally challenge Revenue assessments raised against them.

The Revenue investigation was launched last year in response to alleged tax evasion on the part of contractors and professionals working through their own companies in the technology, software and pharmaceutical industries. It started last January in the Munster region and was extended nationwide in Spring 2013.

Appeal Commissioners Revenue Contractors Tax Project

Revenue audits had revealed that some contractor companies were claiming excessive expenses against their tax bills, with claims for motor & travel and associated home office costs in the spotlight.

Revenue then “invited” contractors to make voluntary disclosures of their tax underpayments, including interest and penalties.  A significant number of contractors came forward to do so and it was once speculated that the entire project could yield up to €100m for Revenue.

However Business Editor Ian Kehoe has now revealed that a number of contractors have faced down Revenue, maintaining that their tax affairs and accounts deduction claims are fully in order.

In addition, Dun Laoghaire-based tax consultant Dermot Byrne recounted in yesterday’s paper the case of one contractor who demanded that Revenue raise a tax assessment, in order to enable him to formally challenge the assessment through the Appeal Commissioners, in line with the Revenue Code of Practice for Revenue Audit.  Revenue then backed down and dropped their case against the contractor and his company.

The lesson for contractors is clear: if you feel aggrieved with Revenue’s treatment of you and your business, you can challenge them at the Appeal Commissioners.

It goes without saying that Appeals are only advisable with the benefit of professional advice. Bear in mind the old saying “A man who is his own lawyer has a fool for a client“. But, if you don’t look after and protect your own interests, who will?

Ian Kehoe’s & Dermot Byrne’s articles yesterday can be accessed by purchasing a Sunday Business Post subscription, starting at €2.69 for a single edition.