Value added tax was introduced in 1972
All traders who are registered for Vat must
pay Vat on their purchases and
charge Vat on their sales
The amount of Vat which they must pay is
the amount of the Vat o
Case 1 taxes the income of Trades
Case 11 taxes the income of Professions and Vocations
No practical difference between the two
The basis of the assessment to tax is the accounting
Is there a right and a wrong way of taxing savings?
If savings are taxed too heavily will they escape abroad- non
- resident accounts?
If savings are taxed too lightly will people spend too much?
Capital Gains tax is levied in this country on realised
Taxpayers who are resident and domiciled taxed on
their worldwide capital gains
Residents not domiciled are taxed on their gains
Worldwide trend towards a reduction in the top levels of
income tax accompanied in cases by some or all of the
a reduction in allowances
a reduction in the number of tax bands
an increase in the prop
In the Irish Income tax system there are currently
two rates of tax 20% and 41%
For a single or widowed person without children in
2010 the first 36,400 is taxable at 20% and the
balance is taxable at 41%
Tax on the dividends and other Distributions from Irish
Current year basis i.e. cash dividend received in tax year
accounting date irrelevant
An Irish resident company must deduct withholding tax in
Making Tax choices
AC 2115 lecture 2
The tax choices
1) How much to raise
2) What to tax
3) How many taxes
4) Defining the tax base
5) What rates of tax
6) Any exceptions ?
The search for guiding principles
Tax should be efficient
We should try to levy ta
Introduction to Taxation
AC 2115 Lecture 1
Why Raise Taxes
To raise revenue to provide goods and services.
To redistribute income.
To influence behaviour.
As an instrument of fiscal policy.
Tax is the way we fund government
Tax funds educa