Taxation

Taxation

We provide a full range of compliance services across all tax heads including the preparation of tax calculations and the submission of tax returns including the following:

• Income Tax
• Capital Gains Tax
• Capital Acquisitions Tax
• Stamp Duty
• Corporation Tax
• Local Property Tax
• Payroll

INCOME TAX
In broad terms income tax is payable by people resident in Ireland and by non residents who earn income from assets located in Ireland or employment earnings generated from employment executed in Ireland. There are exceptions to the general rules which must be considered on an individual basis.

Income tax is paid in Ireland at the standard rate (20%) and or marginal rate (41%) with ancillary PRSI and universal social charges applicable too. Tax compliance dates, tax rates and rules change from time to time. The late payment of tax or late filing of returns can lead to the imposition of interest and penalties. In recent times a harder line has been taken by Revenue towards interest and penalties.

We can prepare and compute your annual tax returns. We can advise when tax payments fall due, what level of tax should be paid, and whether there is scope to reduce tax by maximising available reliefs, or restructuring income. We will manage any dispute resolution issues that could arise with Revenue.

Where required we will prepare meaningful tax compliant accounts and financial statements for sole traders and other small to medium sized business so as to enable easy submission of tax returns

Capital Gains Tax

The legislation for capital gains tax involves a degree of complexity that requires the skills of a specialist. There are reliefs and exemptions that can be availed of depending on the circumstances. We will be able to determine whether the disposal, transfer or gift of an asset is subject to capital gains tax and whether any relief or exemptions can be availed of now or in the future.

If you are contemplating selling, transferring or gifting an asset it is beneficial to share your intentions with us in advance of actioning anything. That way we can advise you of the necessary sequence of transactions that may need to be satisfied in order to benefit from any exemptions and reliefs that may be available allowing you to reduce your tax liability.

We will prepare your capital gains tax computations and returns. We will advise on the due date payments when such taxes fall due. In the event you have paid capital gains taxes without seeking suitable professional advices you may want to consult with us to establish whether you may be due a refund.

Capital Acquisitions Tax (Gifts & Inheritances)

Irish gift and inheritance tax is called Capital Acquisitions Tax or CAT. The tax is payable by the person receiving the benefit of a gift, inheritance or where assets are sold below market value. It arises where a gift or inheritance is taken by or from a person living in Ireland.

Land and buildings located in this country and shares deriving their value from such underlying assets may also be subject to CAT irrespective of whether the deceased, donor, receiver or inheritor are resident in the country.

Each taxable individual is entitled to a tax free threshold, The amount of the threshold depends on the nature of the relationship between the parties involved. For instance the tax free threshold from parent to child (Class A) is much greater than between uncle and nephew (Class B) and in turn to strangers (Class C)

Gifts and Inheritance are aggregated for CAT purposes. While a gift or inheritance might be lower than the class threshold a CAT liability may be triggered because the total gift and inheritances within that threshold class exceed the threshold when added together.

The tax free class threshold and the CAT rates change from time to time depending on the content of the Minister of Finances budget.

The due date for filing and paying capital acquisitions tax is driven by the date the receiver/donee/inheritor becomes beneficially entitled to the asset. In most cases this is driven by the date of the grant of probate however there are several exceptions to this general rule where the right of enjoyment may prevail instead.

Where the estate of the deceased spans other jurisdictions tax may be payable in those jurisdictions as well. Part or all of the tax payable abroad there may be allowed as a credit or a deduction to reduce the liability in Ireland.

We provide a robust CAT consultancy service including

• Review of the tax implications of gifts and Wills before death
• Reviewing the sequence of transactions to avail of possible reliefs and exemptions
• Assistance in calculating CAT on gifts or inheritances
• Filing returns
• Assistance dealing with Revenue where taxpayers are selected for Revenue audit
• Stamp Duty

Stamp Duty