this is obviously a strategy by revenue to catch out all the "amateur investors" who made a killing during the boom years,who a now liable for 1. the original stamp duty that should have been paid 2. the capital gains on disposal. There's plenty of them out there !.
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.
[broken link removed]?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)
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...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
Sounds to me like she's worrying for nothing.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.
Revenue Investigation on Deposits - Update 4th June 2008
04 Jun 2008
ICAI has had a second meeting with Revenue today on the Revenue Special Investigation on Deposits where some concerns of members were brought up. Following our submission on the closing date for disclosures and payments, Revenue have confirmed that the submission date is 15 January 2009. In addition, Revenue have placed FAQs which deal with various aspects of the investigation on their website.
Other important clarifications obtained relate to the eligibility of taxpayers to make a qualifying disclosures both in the context of this investigation, and subsequently. These are summarised on a Frequently Asked Questions Statement, which is being published on the Revenue website this afternoon.
It was evident from our meeting and from the content of the FAQ that the focus of the Revenue investigation is on significant undisclosed funds. Situations arising where taxpayers have moneys on deposit where there are no underlying tax issues should not give rise to difficulties. Revenue are not seeking declarations from taxpayers with deposits above the €100,000 threshold where underlying tax is not at issue. We also understand that exposures to PRSI and levies which may have arisen as a consequence of deposit accounts not being declared on Returns of Income are not to be pursued.
ICAI will continue to engage with Revenue on any further queries on the Special Investigation on Deposits that members may have. For the moment we would urge study of the FAQs, which are available on the Revenue website.
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!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?
You can. But you need to be able to back up such claims with evidence in the event of a tax audit.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.
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.
A tribunal appearance is not the same as a tax audit.But how do you back it up with evidence? Did Bertie?
But how do you back it up with evidence? Did Bertie?
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 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?
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.
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)
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?