Personal Taxation An Overview 2011 Presentation By Patrick

Personal Taxation – An Overview 2011 Presentation By: Patrick Carrig, CAT, BBus(Hons), ACCA, AIPA, 2012 2013 Griffith College Limerick After Tax Income Levels

Personal Taxation – Importants class rule. It is required that all students must bring a drink with them to the Personal Taxation Class. The drink must: 1. Contain caffeine, 2. Cannot be Tea, Coffee and or an Energy Drink. 3. The drink must be cold and must be contained in a bottle. Posted on Forumn this Morning By: Patrick Carrig, Failure to follow this rule will result in an on the spot fine of € 30 an admin fee of € 20 and a lectures fee of € 10. which will be collected by Fiona In class. You may only appeal this fine after you have paid it in full. Failure to appeal by end of class make fine permanent and non refundable. Griffith College Limerick

Feeling Upset about having to Pay the Fine. Well welcome to the world of Tax. This Example ( the class Rule) is a basic example of a Tax provision. 1. It has a charging rule ( No drink pay fine). 2. It has a set charge or way of calculating same. 3. It has a basis on which it is charged ( applies to Personal tax class) 4. It has clear tests and definitions. ( rules) 5. It allows an appeals mechanism. 6. It has a collection process ( Fiona). And Finally, We have people that are Unhappy and out of pocket, because they did not know. Also it has Avoidance & Evasion. Avoid tax ( Bring Drink, don’t attend class) Evade ( come to class with no drink and try to get away with it, claim ignorance, unjust). Avoidance may be questioned but it is not only Legal it is encouraged. Lord Justice Denning, famous Line on no legal obligation to organisation of ones store so Taxes are high

So what makes up Tax & USC What everyone call’s tax is made up of three seperate charges. PRSI Your share What we feel About the share of wages • Income Tax. • Universal social charge. (USC) • Pay Related Social Insurance. PRSI. Each has their own special rules, We will look at just TAX today.

So who invented Tax We have Tax since forever. The oldest form of writing is actually Tax records. The Rosetta Stone. Our current system of taxes was introduced in Britain by William Pitt the Younger in 1798, to pay for the Napoleonic wars. Pitt's new graduated income tax began at a levy of 0. 8333% with a top rate of 10%

This level of take home pay after all taxes are paid The Idea Of TAX Freedom Day. This is the day on which if we all had to pay our taxes, it would be the first day we would start earning money for ourselves. Jan In 2010 Tax freedom day fell on the 27 th April It will be much later this year. In 2008 Tax freedom day fell on the 30 th march Feb Mar Apr May june

FINANCIAL CRISIS – EMPLOYMENT Just Like Lord Justice Denning said. ”the avoidance of tax may be Lawful it is not yet a Virtue”. He set the principle that as long as we stay within the letter of the law, we can organise our affairs in such as way as to reduce our tax bill. Sadly research by Revenue has show the vast majority complain about atxes but do nothing. Fail Pass Merit Idea of Tax Planning & tax home pay This is changing as can be seen by the profits made by TAXBACK. COM

Tax code- Plus and minus KNOCKED OUT • All income with some minor exceptions are taxable. Examples of tax free income , gambling, Patents royalties and in some case Art & literature. • Soon as you exceed a treshold you start paying higher tax, tax jumps form 20% on income below treshold to 42% on all above. • The rules are freely available, but they are not called the tax code for nothing. Savings • you are allowed special allowances against your tax bills, thes are called tax credits. Revenue research shows most people do not claim all they are entitled to. • The Onus is on you to Plan your affairs. Ignorance is not an excuse

The level of Tax home income Taxation – How do you make it work for you , Simple, Tax Planning 2009 2010 2011 2012

WORKED EXAMPLE – NOW AND FUTURE CURRENT POSITION: Terry & June are married with all income in name of the Terry, June stays at home to look after their Serious ill son. Terry Works as a college Lecturer full time and only claims basic allowances , They are finding it hard to pay bills out of after tax income such as Medical expenses for child € 3000 not claimed and interest on ahome improvement loan interest € 1000. To help out they Rent a room in the house out to Nephew who is at college At € 2, 400 PA Simple steps By engaging with the Revenue commissioners ( can be as simple as 10 minutes on Revenue online service / PAYE Anytime. ) we can change Terry & Junes positon Radically. In this case Terry & June have found 4, 886 reasons ( size of tax bill) to do so. See can you find the changes I made. The study of TAX is about those rules and ideas.

By The Way Remember our Important class rule. It is required that all students must bring a drink with them to the Personal Taxation Class. The drink must: 1. Contain caffeine, 2. Cannot be Tea, Coffee and or an Energy Drink. 3. The drink must be cold and must be contained in a bottle. Failure to follow this rule will result in an on the spot fine of € 30 an admin fee of € 20 and a lectures fee of € 10. which will be collected by Fiona In class. You may only appeal this fine after you have paid it in full. Failure to appeal by end of class make fine permanent. Posted on Forumn this Morning By: Patrick Carrig, CAT, BBus(Hons), ACCA, AIPA, Griffith College Limerick Fiona will now collect the Fines, Please have correct change ready. Thank you.

Feeling Upset about having to Pay the Fine. Sorry that you feel that way. But just like in Taxes • Ignorance is no excuse. • We only charge you as per the rules that exist no more no less. Still Not Happy, Well Ok. Next Class I’ll show you how to claim the fine back in full, ( should insure full class). But until Then You learn a painful lesson. “Fail to Plan you Plan to Fail” and in this case we are talking hard earned Cash. Thanks For Your attention.