Noone Casey are hosting a seminar for contractors on 19th September 2013 at 6.30pm in the Alexander Hotel, Fenian St, Dublin 2 on Contractors & Revenue Audits.
The Revenue Commissioners are targeting contractors for Revenue audit following the success of their initial Contractor project in the Munster region. The first round of Audit notification letters has been issued with subsequent rounds being issued in the coming months.
The Revenue Commissioners continue to roll out their Contractor Project. This ‘project’ has expanded from a Munster initiative to an National review of COntractors accounts and tax returns. Revenue have successfully challenged the tax returns of many contractors since the project began and have recovered significant amounts of underpaid taxes.
Noone Casey have been to the forefront of negotiations & discussions with Revenue as to the scope & impact of their audits.
We are hosting a seminar in early September to bring the Contractor community up to speed on the latest Revenue audit issues.
Register your interest in attending the Seminar with Ruth at 6766 476
Further details of the seminar will issue over the next 2 weeks.
The deadline date for electronic filing of Local Property Tax returns is 28 May 2013.
In this video, Chartered Accountants Ireland Director of Taxation Brian Keegan explains how this is a self-assessment tax, where the obligation is on the individual to ensure information held by Revenue is correct. He also looks at the tax from the perspective of self-employed people and PAYE workers and talks about ways to file.
The Finance Act 2013 has introduced a facility whereby individuals can withdraw a portion of their AVC assets prior to retirement age. The key features are:
· It is possible to withdraw up to 30% of the accumulated value of Additional Voluntary Contribution (AVC) payments from a pension arrangement. This includes occupational pension plans, AVC plans, PRSA AVC plans and Personal Retirement Bonds with an AVC element.
· If an individual has more than one pension arrangement, the limit applies to 30% of the value of AVCs from each arrangement.
· Withdrawal is not an option on the value of employer contributions or employee regular contributions.
· Only one withdrawal is allowed.
· The withdrawal can take place at any time between 27th March 2013 and 26th March 2016.
· The withdrawal is liable to income tax but not subject to PRSI or USC deduction. The income tax liability is based on the individuals overall income in the year of withdrawal.
The Registered Administrator (RA) for the pension plan will have procedures for AVC drawdown. The RA will require the completion of a form. The RA is obliged to deduct income tax at source. Most RAs are likely to automatically deduct at the 41% income tax rate with the provision of the individual to either prove a lower tax rate liability prior to payment or the individual can claim back any excess deduction of tax from the Revenue Commissioners. Each RA will have procedures for the sale of investment units and the timelines for the settlement of payment. The RA might only make payment by electronic fund transfer.
If a Pension Adjustment Order (PAO) is in place, each party can access the value of AVCs based on the terms of the PAO.
Interested in finding out more…
Depending on an individual’s personal financial circumstances, the option to withdraw up to 30% of the value of AVCs could be good or poor financial advice. This is a technical note and should not be regarded as financial advice.
Feel free to contact us for more information or if you have any specific questions to relation to AVC drawdowns
Thanks to our friends in Acumen & Trust for this technical update.