I would imagine that the evaded CGT in the case of somebody who bought a property and then sold it in the last few decades without declaring it as a rental/investment property could well be significant. Whether or not this is part of the focus of this Revenue trawl is not clear but I guess that they are looking for ANY evasion so they would be interested in this sort as much as any other. I'm not sure about solicitors being responsible for policing the investment property CGT issue and even if they are if the client lies to them and says or implies that the property is their PPR then what can the solicitor do other than take them at their word?
starlite68
Registered User
- Messages
- 330
i think with the economic slow down the revenu are going to be put under ever more pressure to get money from wherever they can....if this trawl dosent net enough,there is noting stopping them from dropping the treshold to 50 thousand.
ubiquitous
Registered User
- Messages
- 3,782
If the Revenue want to chase amateur property investors, why not announce an "incentive" aimed directly at them? Issuing warnings to people with bank account balances of more than €100,000 would seem to be a bizarre way of attracting the attention of amateur property investors.
I have a question for a friend who has got one of these forms that were sent out at random (dont know what it's called haven't seen it) she has a big savings account all saved legit dirt has been taken at source as is normal but she is paying the higher tax rate does this mean she should be paying tax on her interest at the higher rate as she has never filled in returns at the end of any year she has never declared these savings as she thought she had paid all her taxes - she is so worried over this as thinking she was a law abiding person and now doesn't know where she stands.
Insofar only as concerns Income Tax, from (I believe but open to correcton) 1994/95 the DIRT deducted is deemed to satisfy all Income Tax due, regardless of the rate of tax of the taxpayer. Prior to that a higher rate taxpayer would have had exposure to some additional tax. Prior to introduction of DIRT ( ? 1986? ) all interest would be exposed to the taxpayers marginal rate.
Separate to Income Tax, some persons may have exposure to PRSI & Levies as outlined earlier in this thread.
[broken link removed]?
If 20% DIRT is deducted at source then she has no further tax liability. She MAY have a PRSI liability depending on the total annual interest earned as I mentioned above. I'm still not 100% clear on this...
Sounds to me like she's worrying for nothing.
ubiquitous
Registered User
- Messages
- 3,782
What do they mean by PRSI due 'not to be pursued' is that not to be pursued now, but may be pursued at a later date? I imagine quite a few ordinary people (PAYE) earning a couple of hundred euros in interest and not declaring it, as they never fill out tax returns, don't know anything about a possible PRSI implication. Good to see revenue are on the ball though.
Not going off topic as I'm deadly serious, if you have hot money, can you now say, well your honour, sure I won it on the gee gees at Cheltenham in 1994/5/6...... Dirt is paid, no further tax due, thank you very much. Might be the last defence of a scoundral, but I bet there are many out there listening and learning from the master accountant himself.
Not going off topic as I'm deadly serious, if you have hot money, can you now say, well your honour, sure I won it on the gee gees at Cheltenham in 1994/5/6...... Dirt is paid, no further tax due, thank you very much. Might be the last defence of a scoundral, but I bet there are many out there listening and learning from the master accountant himself.
Well realistically Revenue are never going to say that they will ignore any tax/PRSI issues that might be outstanding even if they are not going to focus on them as part of this trawl. Oh - except if/when they have another amnesty!
You can. But you need to be able to back up such claims with evidence in the event of a tax audit.
paddywhacker
Registered User
- Messages
- 102
Well realistically Revenue are never going to say that they will ignore any tax/PRSI issues that might be outstanding even if they are not going to focus on them as part of this trawl. Oh - except if/when they have another amnesty!
You can. But you need to be able to back up such claims with evidence in the event of a tax audit.
But how do you back it up with evidence? Did Bertie?
A tribunal appearance is not the same as a tax audit.
paddywhacker
Registered User
- Messages
- 102
I wasn't being smart, can you back it up with documentary evidence? I've never bet on horses so I don't know how it works, is there paperwork?
Presumably any sort of paper trail would be taken into consideration - e.g. betting slip, bookies receipt or cheque payment (don't some big winners get paid this way or ask to be paid in this way?), winnings bank lodgement slips etc.
I do not think winning at race meetings would satisfy your accountant, not to mind the revenue. It looks like the other trawls, probably back fifteen years from the finance act of 2006 - 15 years. 1990/91.92, in that area. I doubt that it will be confined to 2005, might be back 6 years but doubtful.
I have a question which I think is relevant to this discussion. I have funds on deposit which I earned while I lived and worked abroad for a number of years.On returning to Ireland I left the money I had earned on deposit in the country which I had lived, for a couple of years as I didn't need it straight away. About two years later I transferred it over to Ireland and put it on deposit here. Am I liable for dirt on the interest I earned on these funds for that two year period while being resident in Ireland? The country I lived in was tax free.
I'm not sure how it works on the paper returns, but if you fill out an electronic Form 11 (on ROS or ROS Offline Application) you will see that bank interest income indeed triggers an additional 2% (of the pre-DIRT interest amount) in Health Levies. PRSI will also be due, unless you've already hit the PRSI ceiling with your other income sources.
(Note - for individuals earning >€100,100, The health levy is 2.5% on income above that figure)
If you fill out either a paper or ROS Form 11 then any additional PRSI/Levies due will be automatically calculated by Revenue when the Notice of Assessment issues.
If you fill out a paper Form 12 ( not certain on ROS based F12 but think the same ) then no PRSI/Levies is calculated.
I've been to some race meetings and I don't remember any receipts, maybe it's different nowadays but you just get a numbered cardboard piece of paper, it's written down in the bookies book what your bet is and the odd's, but if you win you just get the cash. It's seems to be a perfectly legitimate defence to the question of where did the money come from or Bertie wouldn't have brought it up.
It would be far simplier if the govenment/Revenue decided that the DIRT tax covered everything including PRSI. I'm sure when I earned 20 pounds in interest in say 1995 that I probably owe PRSI on it, I know for sure I never declared it, not to avoid tax but I didn't even realise it might have a further PRSI liability.
It would be far simplier if the govenment/Revenue decided that the DIRT tax covered everything including PRSI. I'm sure when I earned 20 pounds in interest in say 1995 that I probably owe PRSI on it, I know for sure I never declared it, not to avoid tax but I didn't even realise it might have a further PRSI liability.