Interpretation Of Standard Revenue Email

[eirman]

ROS Pay and File Payment Reminder Notice​

Dear Sir/Madam,

As you are registered for Income Tax, you are required to file a self-assessed Income Tax return .............

Your payment obligations for 2022 are as follows:
•Preliminary Income Tax for 2022 pay by 31 October 2022.
Pay a minimum of 90% of the final tax liability for the year, or 100% of the final tax liability for the preceding tax year.
..........
==============================================================================
My reading of the email is that paying preliminary tax for 2022 is not required if 2021 is fully paid up.

However, I do feel that I must be misinterpreting the email.

 

[jpd]

You always have to pay Preliminary Tax for the current year, 2022, by 31 Oct 2022 in addition to any balance due on the tax for 2021

You have to estimate the amount yourself - it has to be at least 90% of the tax which will be due for 2022 or 100% of the tax paid in 2021

If not, you could be hit with penalties

 

[eirman]

You always have to pay Preliminary Tax for the current year, 2022, by 31 Oct 2022 in addition to any balance due on the tax for 2021

That's what I thought (and in fact really knew), but do you agree that Revenue's wording is somewhat ambiguous.

 

[Jim2007]

That's what I thought (and in fact really knew), but do you agree that Revenue's wording is somewhat ambiguous.

It's as plain as muck!

Which part do you not understand?

"Pay a minimum of 90% of the final tax liability for the year, or 100% of the final tax liability for the preceding tax year."

 

[eirman]

Well Jim & JPD, my guess is that you are professionals, emersed in the system and are unable to 'see the wood from the trees' .
It's so obvious to yourselves that to you are correct and I know that you are correct.

A lay person reading this for the first time ...
"Pay a minimum of 90% of the final tax liability for the year, or 100% of the final tax liability for the preceding tax year."
could genuinely interpret it as .... Do THIS or Do THAT. (When THAT is not properly defined).

It's a matter of proper semantics. Semantics is how one's lexicon, grammatical structure, tone,
and other elements of a sentence coalesce to communicate its meaning.

This is not perfect but would be far less ambiguous ....
Pay a minimum of 90% of the final tax liability for the year, or pay an amount equal to 100% of the final tax liability for the preceding tax year.

 

[Brendan Burgess]

Your payment obligations for 2022 are as follows:
•Preliminary Income Tax for 2022 pay by 31 October 2022.
Pay a minimum of 90% of the final tax liability for the year, or 100% of the final tax liability for the preceding tax year.

I think that the sentence on its own could be ambiguous.

But the paragraph, taken as a whole, is clear. Having said that it could be clearer still. Yours is a little clearer.

How about
"Pay a minimum of 90% of your final tax liability for 2022.
Alternatively, for the year 2022, you can pay an amount equal to 100% of the final tax liability for 2021."

 

[eirman]

"Pay a minimum of 90% of your final tax liability for 2022.
Alternatively, for the year 2022, you can pay an amount equal to 100% of the final tax liability for 2021."

Yes Brendan, that is even clearer - no room for ambiguity there!

 

[Harfang]

I’m with eirman. It’s badly worded and not clear. I wouldn’t consider myself stupid , some say they think I’m bright! Perhaps they’re correct. (I did get 450 points in my leaving in the early 90s back when points were hard to come by ! )

I understand Brendan’s wording.

 

[ryaner]

Brendans wording is really clear, Revenue should take some notes.

Telling people to pay 90% of the "preceding tax year" when they are paying it then is confusing as hell. Revenue could easily code some suggestions into the system as well if they wanted.

 

[eirman]

It's as plain as muck!

You got that right!

 

[jpd]

I think you can pay the smaller of the two amounts - so if you estimate that your tax for 2022 is € 30,000 so that 90% is € 27,000 and tax for 2021 was € 10,000 then you can pay € 10,000 by Oct 31 2022 and the balance of € 20,000 in Oct 2023

 

[JLenn68]

I find preliminary tax extremely confusing. What if you overpay, can you reclaim it? or is it automatically formated in to the Form 11?

 

[jpd]

I overpaid my income tax one year and then I got a refund in Jan - I think I submitted a correction or contacted Revenue and explained

 

[ryaner]

Revenue are normally really good at refunds. I'd guess that a form 11 preliminary tax refund would trigger the main forms refund and you'd have the money back within a month of filling.