Irish Tax Institute - TaxFind: Personal Taxes

1. Introduction to Tax in Ireland

1.1 Evaluate the principles of a fair and efficient tax system

1.2 Explain the influences and confines which frame the Irish tax system

1.3 Evaluate Ireland’s tax base and any alternatives available

2. Introduction to Income Tax

2.1 Identify profits or gains which are taxable under income tax

2.2 Outline the territorial scope of the charge to income tax

2.3 Outline the Schedular system for categorising sources of income

2.4 Outline the main sources of law for income tax

2.5 Outline the tax rates, credits and bands applicable

3. Residence, ordinary residence and domicile

3.1 Establish the scope of an individual’s charge to Irish income tax and conclude on the extent of the charge to Irish income tax on a range of domestic and foreign income sources where the individual is resident, ordinarily resident or domiciled in Ireland

3.2 Describe how and when an individual can elect to be tax resident

3.3 Establish an individual’s charge to the domicile levy

3.4 Establish an individual’s charge to income tax and CGT based on differing circumstances of residence, ordinary residence and domicile

4. Taxation of business income - Schedule D Case I and II

4.1 Define what constitutes a profession

4.2 Based on various sources of law, conclude on what constitutes a trade. Use this to decide whether or not a trade is carried on in practical situations

4.3 Outline the general basis of assessment for Schedule D Case I and II

4.4 Interpret legislation, using case law where necessary, to identify taxable and non-taxable income for the purposes of arriving at Case I and Case II profits

4.5 Interpret and apply legislation, using case law where necessary, to identify allowable and disallowable expenditure for the purposes of arriving at Case I and Case II profits

4.6 Compute the taxable profit of a sole trader applying the above rules and reliefs

4.7 Apply case law and legislation to explain when a trade commences and when it ceases, applying the rules to practical examples

4.8 Outline the basis of assessment for Case I and II in relation to start-ups, cessations and changes in accounting date

4.9 Apply principles from established case law to determine whether the trade is carried on in Ireland or abroad

4.10 Calculate the tax, PRSI and Universal Social Charge (USC) payable by an individual on their trading or professional income

5. Loss Relief in a Trade or Profession

5.1 Conclude, based on various sources of law, what relief is available for trading or professional losses

5.2 Interpret legislation to explain how trade charges interact with losses

5.3 Interpret legislation to explain what relief is available for losses incurred outside of Ireland

5.4 Calculate the loss relief available applying the above rules

5.5 Assess how best to use the available loss relief

6. Computation of capital allowances for Schedule D Case I and Case II

6.1 Outline the basis period for capital allowances

6.2 Describe how grants received are treated for the purposes of capital allowances

6.3 Interpret legislation, using case law where necessary, to identify when expenditure qualifies as “plant” for capital allowance purposes

6.4 Summarise the conditions that must be fulfilled for capital allowances to be available on plant and machinery

6.5 Describe the tax implications of disposing of an asset on which capital allowances were claimed

6.6 Assess if capital allowances on plant and machinery are available in a practical situation and calculate any allowances available

6.7 Summarise the conditions that must be fulfilled for capital allowances to be available for motor cars

6.8 Assess if capital allowances on motor cars are available in a practical situation and calculate any allowances available

6.9 Interpret legislation, using case law where necessary, to identify what constitutes an industrial building

6.10 Summarise the conditions that must be fulfilled for industrial buildings allowances to be available

6.11 Describe the tax implications of disposing of an asset on which industrial buildings allowances were claimed

6.12 Assess if capital allowances on an industrial building are available in a practical situation and calculate any allowances available

7. Case I and II capital allowances: Anti-avoidance provisions and interaction with losses

7.1 Explain the reason for anti-avoidance provisions relating to capital allowances

7.2 Apply the anti-avoidance provisions relating to capital allowances

7.3 Explain how capital allowances interact with losses

7.4 Calculate the relief available for capital allowances and losses

8. Rules relating to the taxation of specific businesses carried on by an individual

8.1 Interpret legislation to explain the taxation implications of appropriations to and from trading stock

8.2 Conclude whether or not a partnership exists

8.3 Outline the implications of a partnership

8.4 Compare limited partnerships and a limited liability partnership to general partnerships and compare a partnership to a company

8.5 Describe when dissolution of a partnership can occur

8.6 Distinguish between a partnership, a sole trader, and other collective arrangements

8.7 Distinguish between a general partner and a limited partner

8.8 Outline the special rules relating to the basis of assessment and scope of income tax in relation to partnerships

8.9 Explain why there are restrictions applied to limited partners and what these restrictions are

8.10 Calculate each partner’s liability to tax, PRSI and Universal Social Charge on partnership income

9. Taxation of Rental Income: Schedule D Case V

9.1 Interpret legislation to identify what income is taxable under Schedule D Case V

9.2 Outline the basis of assessment for Schedule D Case V

9.3 Interpret legislation, using case law where necessary, to identify allowable and disallowable expenditure for the purposes of arriving at Case V profits

9.4 Explain the implications of claiming rent-a-room relief

9.5 Compute Case V profits applying the above rules and reliefs

10. Leases and lease premiums

10.1 Outline the scope and basis of assessment of Schedule D Case V for lease premiums

10.2 Interpret legislation to calculate the “income” portion of a lease premium

10.3 Conclude, based on tax law, the tax treatment of sub-letting premises

10.4 Conclude, based on tax law, the tax treatment of granting a short lease out of a freehold/long lease

10.5 Conclude, based on tax law, the tax treatment of assigning a lease on a premises

10.6 Conclude, based on tax law, the tax treatment of surrendering a leasehold interest

11. Case V capital allowances

11.1 Interpret legislation to identify the capital allowances available against Case V income

11.2 Assess a lessor’s entitlements to capital allowances

11.3 Summarise the restrictions that can apply to Case V allowances

12. Taxation of trading lessors

12.1 Explain the taxation of a trading lessor compared to the taxation of normal lessors

12.2 Explain the interaction of losses in a leasing trade with capital allowances

12.3 Calculate the income tax, PRSI, Universal Social Charge and CGT due on a transaction involving a lease

13. Withholding tax on rental income/expenses

13.1 Explain why withholding tax applies to rents paid to non-residents

13.2 Interpret legislation to explain how the withholding tax applies on rent to a non-resident landlord and any administrative obligations arising

13.3 Calculate the applicable withholding tax on rent paid to a non-resident

14. Development land

14.1 Describe the tax treatment of receipts from dealing in or developing land

14.2 Explain the rules for calculating profits and losses from dealing in or developing land including debt release

14.3 Outline the anti-avoidance rules in relation to dealing in or developing land

14.4 Compute any tax, PRSI and Universal Social Charge applicable to the sale of development land

15. Property Tax

15.1 Explain when the Local Property Tax is due

15.2 Outline when vacant homes tax is due

15.3 Outline when residential zoned land tax is due

16. Taxation of Investment Income: Schedule D Case III

16.1 Interpret legislation to identify what income is taxable under Schedule D Case III

16.2 Outline the basis of assessment for Schedule D Case III

16.3 Identify when withholding tax arises on investment income and show how it is treated in a tax computation

16.4 Compute Case III profits and any associated tax relief applying the above rules and reliefs

16.5 Describe how an individual who receives foreign dividends can be given credit for tax incurred by the company

16.6 Explain the rules and practice in determining when a remittance occurs including anti-avoidance measures

16.7 Explain the relief available for losses in a foreign trade and the basis for this relief

16.8 Compute any tax, PRSI or Universal Social Charge applicable to Case III income

17. Taxation of Other Income: Schedule D Case IV

17.1 Interpret legislation to identify what income is taxable under Schedule D Case IV

17.2 Outline the basis of assessment for Schedule D Case IV

17.3 Explain the operation of the DIRT system to Irish and foreign deposit income

17.4 Identify when DIRT arises and show how it is treated in a tax computation

17.5 Compute Case IV profits and any associated tax relief applying the above rules and reliefs

17.6 Categorise the statutory sources of income assessable under Case IV

17.7 Categorise the items taxable under the general Case IV charge

17.8 Interpret legislation to explain how relief is granted for losses under Case IV

17.9 Compute any tax, PRSI or Universal Social Charge applicable to Case IV income

18. Taxation of Irish Dividend Income: Schedule F

18.1 Interpret legislation to identify what income is taxable under Schedule F

18.2 Outline the basis of assessment for Schedule F

18.3 Interpret legislation to determine when and how dividend withholding tax should apply to dividends paid by Irish companies to Irish individual shareholders

18.4 Compute Schedule F income and any associated tax relief applying the above rules and reliefs

18.5 Apply the scope and basis of assessment of Schedule F to shares received in lieu of dividends (scrip dividends)

18.6 Illustrate how tax relief is given for Irish dividend withholding tax suffered

18.7 Compute the tax, PRSI and Universal Social Charge due on receipt of dividends from an Irish company

19. Taxation of employment income: Schedule E

19.3 Prepare the accounting entries for accounting for PAYE and reconcile

19.4 Use the principles of established case law to distinguish between the terms “office” and “employment”

19.5 Use the principles of established case law to define the terms “emoluments” and “perquisite”

19.6 Contrast the meaning of a perquisite with a benefit-in-kind

19.7 Interpret legislation, using case law where necessary, to determine how non-cash benefits are subject to Schedule E

19.8 Interpret legislation, using case law where necessary, to determine the test of deductibility of expenses against Schedule E income

19.9 Interpret legislation to determine when the reimbursement of expenses by an employer gives rise to a taxable benefit and when it does not

19.10 Interpret legislation and explain the relief available for termination payments

19.11 Assess whether the special termination payment relieving provisions apply

19.12 Separate a termination payment into its taxable and non-taxable elements

19.13 Outline the administrative provisions surrounding any claim for relief from tax on termination payments

19.14 Compute the Schedule E income and any associated tax relief applying the above rules and reliefs

19.15 Outline the standard provisions of an employment contract and the main rights of employees

19.16 Distinguish between the terms “employee” and “self-employed” and outline the taxation implications of an individual’s employment status

19.17 Explain what considerations should be taken into account in determining the status of a worker

19.18 Interpret case law and use the principles to distinguish between the terms “employee” and “self-employed”

19.19 Apply the rules of Schedule E to determine the tax treatment of payments received by employees

19.20 Apply the rules of Schedule E to determine the tax treatment of salary sacrifice schemes

19.21 Judge whether income is taxable under Schedule E and compute the tax, PRSI and Universal Social Charge due on Schedule E income

20. Personal tax charges, allowances, credits and exemptions

20.1 Interpret legislation to describe the tax relief available for various payments made by an individual

20.1.1 Permanent health insurance

20.1.2 Employing a person to take care of an incapacitated individual

20.1.3 Covenants

20.2 Interpret legislation to identify the personal tax credits and reliefs available to an individual by virtue of their personal circumstances

20.3 Interpret legislation to identify the tax credits available for various payments made by an individual

20.4 Compute the income tax rebate to first-time buyers who qualify for the Help to Buy scheme

20.5 Compute the personal tax charges, allowances and credits available to an individual

20.6 Interpret legislation to identify the income tax exemptions that exist due to the personal circumstances of the taxpayer or the source of the income

20.7 Compute the taxable income of an individual after claiming all exemptions

20.8 Outline the tax credit entitlements of non-residents and compute the Irish tax liability of non-resident individuals in receipt of Irish source income

21. Tax relief at source

21.1 Outline in principle how tax relief at source is granted

21.2 Using legislation identify qualifying medical insurance premiums and calculate the amount of relief due

21.3 Compare the relief on medical insurance premiums to the relief available for health expenses and permanent health insurance

21.4 Outline how the reliefs are claimed

22. Reliefs for investing in trading companies

22.1 Outline the tax reliefs for investment in corporate trades for individuals

22.2 Conclude, based on tax law, the tax relief available for investments where EII or SURE relief applies

22.3 Explain and communicate to taxpayers the tax implications on the disposal of any investments on which EII or SURE relief was claimed

22.4 Judge whether EII or SURE relief applies and compute the relief available on an investment in an EII or SURE scheme and any tax due on the disposal of that investment and communicate advice to taxpayers in a comprehensive way

22.5 Conclude, based on tax law, the tax relief available on the disposal of shares where relief for investment in innovative enterprises applies

23. Charges for income tax purposes

23.1 Conclude, based on tax law, what relief is available to an individual on annual payments and patent royalties

23.2 Judge what relief is available to an individual who has made payments which could qualify as charges on income and calculate any relief

24. Exemptions and reliefs

24.1 Describe the statutory exemptions from income tax and capital gains tax that are available and any claw-back provisions

24.1.1 Charities

24.1.2 Artists

24.1.3 Woodlands

24.1.4 Profits of micro-generation of electricity

24.1.5 Profits from production, maintenance and repair of certain musical instruments

24.1.6 Lotteries

24.1.7 An individual’s principal residence

24.1.8 Life assurance and deferred annuities: CGT exemption

24.1.9 Superannuation funds: CGT exemption

24.1.10 Pensions

24.1.11 Payments under employment law

24.1.12 Wasting assets and wasting chattels (not qualifying for capital allowances): CGT exemption

24.1.13 Government securities

24.1.14 Restrictions on allowable capital losses

24.2 Calculate any tax, PRSI or Universal Social Charge payable by taxpayers who claim these exemptions and reliefs

25. Taxation of married couples and civil partners

25.1 Interpret legislation to explain the different ways married couples or civil partners may be assessed to income tax and prepare a tax computation based on each

25.2 Calculate the relief available to a couple in the year of marriage

25.3 Calculate the income tax liability arising for the surviving spouse/civil partner and the deceased spouse/civil partner in the year of death

25.4 Calculate the income tax liability arising for both the surviving spouse/civil partner and the deceased spouse/civil partner in the year of death where Revenue concession applies

25.5 Explain how residency impacts on the taxation of married couples or civil partners and calculate any relief available

25.6 Explain the tax treatment of separated/divorced couples and the options available to a separated/divorced couple in relation to the taxation of maintenance payments

25.7 Outline the entitlement of a separated couple to claim certain tax credits, and contrast with the entitlement of a married couple or civil partners living together

25.8 Describe the tax issues surrounding the payment of a mortgage on a family home in the context of divorce/separation

25.9 Explain the CGT reliefs available on the transfer of assets between spouses or civil partners living together (on separation and on divorce/dissolution of the civil partnership) and on the transfer of assets following the ending of a relationship between cohabitants, listing the conditions

25.10 Calculate the tax, PRSI and Universal Social Charge for a married couple or civil partners

26. PRSI and Universal Social Charge (USC)

26.1 Define the key terms used in relation to PRSI

26.2 Interpret legislation to explain how the Universal Social Charge is applied

26.3 Outline the relevant limits and exemptions that apply

26.4 Illustrate with an example how PRSI and Universal Social Charge are applied to employment income

26.5 Illustrate with an example how PRSI and Universal Social Charge are applied to self-employed income

26.6 Explain the eligibility of individuals for the main PRSI benefits, including unemployment, maternity and retirement and the impact of dependents on payment levels

26.7 Summary of PRSI and USC Application

27. Reliefs on sale or succession of businesses and companies

27.1 Interpret the legislation providing for CGT relief on the disposal of a business/company

27.2 Define the key terms specific to retirement relief

27.3 Explain how retirement relief applies in the context of certain disposals

27.4 Contrast retirement relief available for sole traders and shareholders

27.5 Explain if/when marginal relief is available

27.6 Outline the impact of change in ownership on the eligibility to claim retirement relief

27.7 Compute the CGT due on a disposal to which retirement relief applies

27.8 Contrast retirement relief and revised entrepreneur relief

27.9 Assess what taxes apply on the disposal of a family business/shares in a company

28. Incorporation of a business

28.1 Assess what CGT reliefs apply on the incorporation of a business

28.2 Assess the income tax implications of the disposal of a business by a sole trader

29. Administration of self-assessment for individuals

29.1 Using legislation, outline the self-assessment system for the collection of tax and filing of returns for individuals

29.2 Outline which individuals are subject to this specific administration system, and apply the rules to conclude whether self-assessment obligations apply in particular cases

29.3 Detail the registration procedure for self-assessment

29.4 Detail any returns of third-party information that may be required under self-assessment

29.5 Explain an individual’s obligations under the Pay and File system

29.6 Describe and compute the consequences of failing to file a return or pay a tax liability in full and on time

29.7 Describe the appeals process as it applies to an individual within the self-assessment system

29.8 Prepare an income tax return

30. Operation of the PAYE Collection system

30.1 Explain the principles of the operation of the PAYE collection system

30.2 Describe the obligations of an employer in operating the PAYE system

30.3 Describe the obligations of an employee in relation to the operation of the PAYE system

30.4 Outline the practical considerations surrounding the application of the PAYE system

31. Withholding taxes which apply to individuals

31.1 Judge if withholding tax must be applied, and calculate the credit available in an income tax or CGT computation for withholding tax

31.2 Judge if professional services withholding tax (PSWT) applies, calculate the credit available and explain the administrative requirements

31.3 Judge if withholding tax applies on payments to subcontractors, apply withholding tax, calculate the credit available and explain the eRCT compliance system

32. Anti-avoidance

32.1 Explain why market value is sometimes imposed instead of using the transaction price

32.2 Explain why there are anti-avoidance rules which deal with assets subject to a right or restriction

32.3 Explain how assets subject to a right or restriction are valued for CGT purposes

32.4 Explain why there are anti-avoidance rules which deal with assets disposed of in a series of transactions

32.5 Explain how disposals which are carried out in a series of transactions are treated for the purposes of CGT

32.6 Calculate the tax due when these anti-avoidance rules are applied

33. Analyse and advise on Revenue compliance interventions

33.1 Describe the penalty provisions and the action which can be taken to reduce penalties

33.1.1 Penalties for filing an incorrect return or failing to file a return

33.1.2 Meaning of “deliberate”, “careless” and “significant consequences”

33.1.3 Full Cooperation

33.1.4 Qualifying disclosures

33.1.5 Technical adjustments and innocent errors

33.1.6 Self-correction

33.1.7 No “Loss of Revenue”

33.1.8 Late filing surcharge

33.1.9 Defaults within the scope of s1077F TCA 1997

33.1.10 Fixed penalties

33.1.11 Determination and recovery of penalties

33.2 Describe the Revenue Compliance Intervention Framework and the purpose of a Revenue compliance intervention

33.2.1 Level 1 compliance interventions

33.2.2 Level 2 compliance interventions

33.2.3 Level 3 compliance interventions

33.3 Describe what is involved in a Revenue audit

33.4 Outline key practical rules for the conduct of Revenue audits

33.5 Explain what records a taxpayer is obliged to retain

33.6 Describe Revenue’s powers

33.6.1 To inspect documents and records

33.6.2 To require production of accounts and books

33.6.3 To involve the Gardai

33.7 Apply the legislation and code of practice to a set of circumstances and advise the taxpayer of their rights and obligations