Archive for the ‘News’ Category
Compulsory Purchase Orders
Thursday, February 2nd, 2012Civil partnership
Thursday, July 7th, 2011- The new tax provisions for civil partnership have been published. They affect a wide range of taxes. Essentially, they allow a legal civil partnership the same tax status as marriage. For example civil partners will be entitled to joint assessment for Income Tax
Smoking areas – good news for taxpayers
Thursday, July 7th, 2011The s moking ban forced many businesses to erect smoking areas. Hotels and bars had to install large facilities to cater for their smoking customers. These would normally class as buildings. As such, they get no capital allowances. An English court case decided that a large gaebo style smoking area attached to a bar building by metal fixings counted as plant.
As such it is entitled to capital allowances against taxable profits
Business should review this to see if they can make a claim
Premises Providers for VAT
Thursday, July 7th, 2011People with vacant land or buildings sometimes make them available for sales or auctions and similar events. Owners of premises may also provide them for concerts or other entertainments. These owners need to comply with certain VAT rules where
there are mobile traders not established in Ireland e.g. from Northern Ireland and they will trade for less than 28 days at the venue
Where VAT on an activity is due in the place where it is performed. For example, if a venue owner allows a British promoter to run a concert at his premises, the VAT is due in Ireland.
The premises owner notify Revenue 14 days in advance of the event or trading activity.
If they do not, Revenue may make them jointly liable with the trader or promoter for any VAT due. If the promoter fails to pay the provider will have to foot the bill
New French property tax abandoned
Tuesday, June 28th, 2011Good news for foreign owners of French residential property. The government proposed new tax on non-residents of 20% of the base value used for the taxe fonciaire has been abandoned.
This plan met strong opposition on the grounds that it discriminated against non-residents. The opposition was supported by some French senators.
http://www.ft.com/intl/cms/s/2/9d791744-9dae-11e0-b30c-00144feabdc0.html#axzz1QTMeXucx
Pensions Levy
Thursday, May 26th, 2011
To fund its part of it’s Jobs initiative the Government is levying a charge on pension funds of .6% of the fund market value at 1st January 2011. The levy will apply to
- Occupational Pension Schemes
- Personal Pension Schemes
- PRSAs
It does not apply to Approved Retirement Funds or Approved Minimum Retirement Funds
There are pension industry concerns in relation to this levy
Ireland’s 12.5% Corporation Tax Rate
Tuesday, April 26th, 2011This rate has come under sustained attack, particularly from France and Germany. They believe it poaches their companies and tax revenues.
Interestingly, in recent times we have seen two other developments
- Gibraltar has a 10% tax rate. A decison by the Advocate General in an ECJ case against this rate viwed this rate was legitimate. Gibraltar was its own territorial framework for tax purposes.
- Northern Ireland is campaigning for a differential 10% Corporation Tax rate. the U.K. Government is considering this.
Both of these moves lend credence to our position. Also, I recollect that the 12.5% rate was only introducesd when the 0% rate for Exports and Shannon Relief was abolished. these were similar to the new Northern Ireland proposal and were designate as State Aid by the EU
Preliminary Tax 2011 and Universal Social Charge
Tuesday, April 26th, 2011The Universal Social Charge will affect how you pay Preliminary Tax for the 2011 tax year. This will fall due on 31 October 2011.
before the Social Charge you would have had to pay
- 90% of your 2011 liability
- 100% of your 2010 liability
- 105% of your 2009 liability if paying by direct debit, where 2009 liability greater than zero
Now these amounts must include an extra provision for the Universal Social Charge. The charge did not apply for 2010. Therefore, the preliminary Tax should be calculated as if the USC had existed. ROS software is being adjusted to assist the taxpayer in the calculation
Planned changes to Capital Gains Tax and Capital Acquisitions Tax
Tuesday, April 26th, 2011As part of the EU/IMF programme there are committments to change Capital Gains Tax and Capital Acquisitions Tax legislation in 2012. This will include
- changes to reliefs and exemptions
- possible rate increases
What should you do?
If you are planning any transactions making use of existing reliefs and rates you should seek advice as to whether you can act quickly.
Some reliefs, e.g. restructurings and amalgamations must be for “bona fide” commercial reasons. There may be time lags in getting Revenue agreements on this matter. There are only 8 months left in 2011 so you could run out of time in these often complex areas.
Low asset values encourage taxpayers to consider passing on wealth through gifts and trusts. Some reliefs such as Agricultural Property Relief and Business Property Relief may change. In the current climate these changes will probably not benefit the taxpayer. therefore, prompt action is required.
An early consultation with your tax adviser is essential
Exchange Traded Funds
Friday, December 31st, 2010Electronically Traded Funds
In recent years these have become a common method of fund investing. However, they can sometimes lead to tax problems as the correct treatment is not understood. many investors believe that they qualify for Capital Tains Tax treatment. This is not the case.
What are Exchange Traded Funds(ETFs)?
ETF’s are funds which invest in baskets of shares and securities across international exchanges. The investor buys units of these funds. This enables him to spread his investment risk across a number of investments using a single fund. in effect, this is the same as investing in unit trusts.
What are the tax implications?
The investments are liable to income tax under a special regime. The key factor is where the fund is resident. These will almost certainly be offshore i.e. non-irish resident. The treatment depends on whether the fund is a
- good offshore fund
- bad offshore fund
When you acquire a “material interest” in the fund you must diclose it in your return. A material interest is any investment which can be sold within 7 years.
Good Offshore Fund
These are resident in an OECD country which has a Double Tax Treaty with Ireland. Both conditions must be met. China has a ttreaty but is not in the OECD. Therefore it does not qualify.
Tax treatment
Tax is chargesd at 30% on
- receipts from the fund
- sale of units
- accumulated gains during an 8 year roll up period
If you fail to declare the acquisition of a material interest in a “good” fund it will be treated as a “bad” fund
Bad Offshore Funds
These are taxed at a special rate of 48%.
Losses on funds
Losses cannot be offset agains gains on other funds. They cannot be carried forward. In effect, they are useless.
These are brief notes for guidance. When dealing with the tax treatment of funds you should seek professional advice.
- Compulsory Purchase Orders 02-02-2012
- Civil partnership 07-07-2011
- Smoking areas - good news for taxpayers 07-07-2011
- Premises Providers for VAT 07-07-2011
- New French property tax abandoned 28-06-2011
