Introduction

Question 1

Main Taxes

Answer 1

~Taxes on income
~Taxes on transactions
~Taxes on capital

Question 2

Tax on Income

Answer 2

Income Tax

Corporation Tax

Question 3

Transaction Tax

Answer 3

VAT
Customs and Excise Duties
Stamp Duty
Capital Gains Tax

Question 4

Capital Tax

Answer 4

Local Property Tax

Question 5

Direct Taxes

Answer 5

Taxes earned on wealth

Eg. Income tax, corporation tax, capital gains tax, capital acquisition tax and local property tax

Question 6

Indirect Taxes

Answer 6

Taxes or levies on transactions or production

Eg. VAT, stamp duty, customers and excise duties and carbon tax

Question 7

Social Contribution

Answer 7

Levies paid into social security funds or schemes

Question 8

Taxation

Answer 8

A compulsory levy made by public authorities for which nothing is receive directly in return

Ie. Transfer of money to public sector

Question 9

Equity

Tax should be fair

Answer 9

Horizontal equity- same situation, same tax

Vertical equity- better situation, more tax

Question 10

Residence

Answer 10

Dependant on the number of days a person spends in Ireland in a particular year

Question 11

Domicile

Answer 11

The concept of the permanent home and is generally the country of nationality and where one resides permanently.

Can only ever have one domicile at any one time

Question 12

Resident and Domicile

Answer 12

Liable to Irish Income tax on their worldwide income

Question 13

Resident in Ireland and not domiciled

Answer 13

Only liable to income tax on their Irish income and any worldwide income that is remitted into Ireland

Question 14

Domiciled but not resident

Answer 14

Not liable to income tax in Ireland, but may be subject to the Domicile Levy

Question 15

Tax Evasion

Ethically Unacceptable

Answer 15

Deliberate and illegal practice of not paying taxes by not reporting income/profits, claiming expenses not legally incurred or allowed, or by not paying taxes owed

Question 16

Tax Planning

Ethically Unacceptable
Legally Allowed

Answer 16

When a taxpayer organises their affairs in a tax-efficient manner so as to reduce their tax liability

Question 17

Tax Avoidance

Grey area

Answer 17

The use of loopholes within tax legislation to reduce the taxpayer’s liability

Question 18

Revenue Commissioners

Answer 18

~Large Cases Division
~High Wealth Individuals Division
~Medium Enterprises Division
~Business Division
~Personal Division

Question 19

Tax objectives

Answer 19

~Economic Reasons
~Social Reasons
~Environmental reasons

Question 20

Economic Reasons

Answer 20

~used to run the country (health, education)
~Encourage/discourage certain behaviour
(Income tax relief for pension schemes)

Question 21

Social Reasons

Answer 21

Redistribute from the rich to the poor in society

Question 22

Environmental reasons

Answer 22

Eg. Reduce level of capital allowances available on cars with higher CO2 emissions