In recent years, Revenue have started to look more closely at transactions between connected parties such as owners and their company, family members and shareholder buy-outs in closely controlled companies. This happens particularly where share buy-backs occurred and also where retirement or entrepreneurial relief was availed of by one of the exiting shareholders. Whilst these transactions are undertaken for bona fide reasons such as succession planning, Revenue are more concerned about maximising the tax yield.
This year's seminars will be held in Dublin (5 March), Galway and Limerick (11 March) and Cork (12 March), once again led by Alan Moore (Alan Moore Tax Consultants) and James Caron (Lucas Consulting). Key topics to be covered will include:
If you could reduce your tax bill by 90% you would, wouldn't you? In the world of tax there is a taxable reduction known as agricultural relief and it can reduce your tax bill by a gigantic amount!
To many people being told that they are entitled to this relief is life transformative. The worst case scenario is that they inherit or are gifted a farm and they aren't entitled to the relief. Such a situation can leave people with an unmanageable liability.
Dealing with your tax affairs can be a stressful business and it can be particularly stressful for struggling artists. But these struggles need not always be the case because over the years artistic exemption, which was brought in by the late Taoiseach Charles Haughey, has proved to be a lifeline for many artists.
Download budget 2019 summary by clicking here
The default rule is that the tenant must withhold 20% from the gross rent, pay it to Revenue, and give the landlord a receipt for the tax deducted: TCA 1997 s 1041; form R185
The 20% withholding tax can be avoided if the foreign landlord appoints an Irish agent to collect the rent on behalf of the non-resident.
The Irish agent will receive a tax assessment on behalf of the non-resident: TCA 1997 s 1034
If the landlord is a foreign company, e.g., a Hong Kong company, with no place of business in Ireland, the landlord must pay Irish income tax (not corporation tax) on a self-assessment basis at 20%. This 20% rate applies to the net profit after expenses. The 20% withholding tax is available as a credit against the landlord’s tax liability.
If the landlord is a foreign individual, e.g., a UK resident, not resident in Ireland, the landlord must pay Irish income tax at 20% up to the standard rate band limit (€34,550 if single; €38,550 if single parent; €43,550 for married couple) and at 40% on the excess. Income tax applies to the net profit after expenses. The 20% withholding tax is available as a credit against the landlord’s tax liability.
If the net income exceeds €13,000, the landlord is subject to USC ( first €12,012: 0.5%; next €7,360: 2%; next €50,672: 4.75%; balance: 8%).
The income is not subject to PRSI: Social Welfare Consolidation Act 2005 Schedule 1 Part 3:
Topics: Income tax
Probably... see https://www.taxworld.ie/answers/paye-creditearned-income-credit/
Topics: Income tax