The looming tax deadline presents the final opportunity to offset a pension contribution against tax for 2010. Relief is granted at the taxpayer’s marginal rate of income tax subject to an overall earnings cap and a sliding-scale of contributions determined by age.
The Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010 (Act) was signed into law on 19 July 2011. The purpose of the legislation is extend to registered civil partners the same tax treatment as is currently provided to married couples under the Tax Acts. It was anticipated that the Act would extend a similar tax treatment to cohabitants however the rights of cohabitants with regard to tax legislation have not being significantly increased in this Act.
The Sunday Independent speculates this weekend on the likely taxes Government will introduce or tweak in the forthcoming Budget 2012 and it doesn’t make for pretty reading. Plastic bags, medical costs, cars and children are all likely revenue-raisers.
It would appear not even the thin blue line is exempt from the long arm of the Revenue. The Sunday Business Post reports more than €200m worth of allowances paid to gardaí every year are now under scrutiny.
Most people look forward to the annual pay-and-file deadline with as much relish as root canal treatment; the Sunday Business Post devotes its personal finance section this weekend to mitigating the pain.
Speculation on what will and won’t be in the Budget has started in earnest this month. It seems inevitable that the upcoming Budget will have a few nasty income tax surprises in store, regardless of political promises made during the election. “Irish workers could easily be between €1,000 and €2,000 less well off once the Budget kicks in in two months’ time” writes Louise McBride in the Sunday Independent.
If you want to save your Government some money, put down the fizzy drink and donut. Minister for health Dr James Reilly is exploring the introduction of a “fat tax” on sugary, fat or high salt foods to defray the cost of illnesses brought on by poor diet such as obesity and type 2 diabetes, says the Sunday Business Post.
Two dozen tax officials have been disciplined for abuse of access to internal records since 2009, according to the Sunday Times. Three officials resigned and two were dismissed after being caught using the system for personal gains.
A group of tax investors in the Portlaoise Heritage hotel are suing their tax consultant and an adviser involved in the deal, says the Sunday Times. The group are examining various legal remedies “on account of their personal recourse to ACC Bank, which funded the four-star hotel, for interest payments totalling over €1million a year”.
The Portlaoise Heritage hotel has been in receivership since June 2010. Experts say it’s unusual for tax investor syndicates to find themselves liable for interest payments in this way.
The new 0.6% pensions levy – which will net the government €1.65 billion – must be passed on to pensioners or it may threaten the solvency of existing underfunded defined benefit pension plans according to the pensions industry.
The self-assessed deadline just around the corner; don’t be late or it’ll cost you. There is a 5% surcharge on the amount of tax liable, subject to a maximum of €12,695 where the return is filed within two months of the deadline. If it is more than two months’ late, a 10% surcharge kicks in, with a maximum fine of €63,485 – although tax-geared penalties may amount to 100% of the liability.
Tax advisers and accountants such as Noone Casey are asking clients to please get their paperwork in sooner rather than later.
Same-sex couples could save hundreds of thousands of euro in tax if they enter a formal civil partnership. Prior to this year, same-sex couples who had inherited a property from their partner would not have been exempt from inheritance tax.
Anyone on a special diet for health reasons – for example, coeliacs or diabetics, are entitled to a 20% tax refund on their foods as part of health expenses. A doctor’s letter is required confirming the condition requiring the special diet.