The Local Property Tax Explained in 3 Minutes

May 27, 2013

Ahead of this week’s Local Property Tax (LPT) deadline, this 3-minute video from Chartered Accountants Ireland is well worth watching.

It features the Institute’s Tax Director, Brian Keegan, who explains:

  • the self-assessment basis for the LPT,
  • issues for PAYE and self-employed earners,
  • the interactions between LPT & other taxes,
  • other practical issues.


Chartered Accountants Rule Out Pay & File Changes

April 19, 2013

Chartered Accountants Ireland have today slammed as “simply impossible”, a proposal to bring forward the annual Income Tax pay & file deadline for self-assessed taxpayers.

This follows a report earlier this week that the annual 31 October deadline, for Form 11 tax returns, was to be changed from 31 October to a “much earlier” date.

Help - Self Assessment Tax Return

In a note to its members this afternoon, the accountants’ Institute states that it has received confirmation from the Department of Finance that the self-assessment Income Tax payment date of 31 October “will not be brought forward in 2015”.

The timing of the annual Pay & File tax deadline is now a live issue, as the terms of the EU Stability and Growth Pact now require Ireland to complete its annual exchequer Budget much earlier than the traditional first week of December.  For this reason, Budget 2014 is scheduled for 15 October next.

The level of self-assessment tax receipts is always a key factor in each year’s Budget and the Dept of Finance will now face additional difficulties in preparing annual Budgets before they can confirm the amount of self-assessment taxes receivable in late October/early November.

Chartered_Accountants_Ireland_low_res

However, Chartered Accountants Ireland have now reiterated to the Department of Finance, their belief that “it would be simply impossible for indigenous Irish business to comply with earlier Self Assessed Income Tax payment and filing arrangements“.

They have also highlighted “the disruption and administrative burden which would follow if the filing date was to be brought forward“.

The shelving of the earlier tax deadline would be a welcome relief for tens of thousands of business taxpayers and other individuals who are obliged to file self-assessment returns in respect of rental and other income.

It would also avert a threatened nightmare for workers in accounting and book-keeping  firms who already face considerable pressure and stress in managing the annual tax return deadline season.


Irish Corporation Tax – Setting the Record Straight

March 15, 2011

The 12.5% Irish Corporation Tax rate has recently attracted plenty of criticism at EU level.  In response, Chartered Accountants Ireland have today strongly defended the 12.5% rate and debunked some of the common arguments used against it.

Their case is outlined in a newly-published position paper ‘Europe and Corporation Tax – Setting the Record Straight’.

Chartered Accountants Ireland

The report compares the Irish Corporation Tax system with the corresponding systems in France and Germany, and finds that there are vastly different approaches in each country on how Corporation Tax rates are arrived at, what relief is available for capital investment, and how dividends are treated.

For example, France operates a headline Corporation Tax rate of 33.3%, yet there is a special rate of 15% for companies earning below €38,000 and various other exemptions.

In addition, the allowances for capital investment for French companies are vastly more generous than the capital allowances available in Ireland.

In France, these amount to €6.60 for each €100 invested in machinery, equipment etc, while the equivalent allowance in Ireland is a mere €1.65 per €100 invested.

And the French tax system allows for 40% of company dividends received by an individual to be disregarded for income tax purposes. In Ireland, dividends payable to individuals are fully taxable.

The report concludes that there is no direct correlation between Corporation Tax rates in individual countries and the sums raised from Corporation Tax in each country.

For example, Ireland raises 2.9% of GDP from Corporation Tax in 2008, while France  (with a higher ‘headline’ rate) raised 2.8%, and Germany (with a higher rate still) raised 1.1%.

The report  puts forward a number of ideas to address unfair tax competition within the EU Single Market and attacks the current EU Common Consolidated Corporate Tax Base proposals.

Well done to Chartered Accountants Ireland for commissioning and publishing this important, and most welcome, report.


16 Nov. ROS deadline applies to Pensions Relief

November 8, 2010

Chartered Accountants Ireland have confirmed today that the deadline for paying Pension Contributions that attract backdated tax relief for 2009 is extended from 31 October to 16 November. This applies where an individual has filed their 2009 Income Tax return by 16 November, and paid any 2009 tax balance via ROS by the same date.

In a statement issued  today, Chartered Accountants Ireland stated  “Following a request for confirmation from our members, we wish to advise all readers that where a taxpayer qualifies for the extended ROS Pay & File deadline of 16 November 2010, this extended deadline also applies to RAC, PRSA and AVC contributions.  Readers are reminded that in order to avail of this extended deadline, both the return and the payment must be made online.  Where only one of these actions is completed through ROS, the extension will not apply.”

As yet I don’t have a link for the statement but I will add this when it is online.


Personal Affairs Checklist

January 20, 2010

The latest edition of the Personal Affairs Checklist, published by Chartered Accountants Ireland, is now available.

The Personal Affairs Checklist is a document to help you keep a concise record of your personal affairs and papers.

You can use it to record confidential information that may be needed in an emergency, such as your death or incapacity.

It includes:

  • contact details for your key advisers
  • the location of your will
  • details of your bank accounts, insurance policies, properties, shares & other assets

Investing a little time now to complete the checklist could save your spouse, partner, relatives or friends a great deal of time and expense in the future.

Download the Personal Affairs Checklist from my website http://www.mcgibney.com/Personal_Affairs_Checklist.pdf