In calculating the "average" tax rate for the past 3 years, what is taken into account in determining gross pay?
For example, we have a Revenue-approved employee share purchase scheme whereby we can "forego" some salary (though it still appears in the payslip) to buy shares tax-free. We can also contribute AVC's on the same tax-free basis. Both of these considerably reduce the tax paid.
The question is: are both of these items allowable in determining the average tax rate or not? Obviously, if they are included, the average tax rate becomes very low. Any thoughts?