Question 1

CGT - Capital Gains Tax

Accepted Answer

This is a tax on profits made from the sale or disposal of an asset such of property or investments

Question 2

Corporation Tax

Accepted Answer

This is a tax on company profits. The current rate is 12.5%

Question 3

PRSI - Pay Related Social Insurance

Accepted Answer

This is a compulsory insurance payment to the State and is calculated as a percentage of gross income.

Question 4

USC - Universal Social Charge

Accepted Answer

This is a tax payable on gross income and applies to all taxpayers whether PAYE or self-assessment income tax.

Question 5

Standard rate

Accepted Answer

This is the lower rate at which income is taxed - the current rate is 20%

Question 6

Higher Rate

Accepted Answer

This is the higher rate at which income is taxed - the current rate is 40%

Question 7

PAYE - Pay as you earn

Accepted Answer

This is a direct tax on income and is applied at a standard rate up to the Standard Rate Cut-Off Point. Then the Higher tax rate is applied to the remainder of gross income.

Question 8

Standard Rate Cut-Off Point

Accepted Answer

This is the amount of income which is taxed at a lower rate. Any income above this amount is taxed at the higher rate.

Question 9

Tax Credits

Accepted Answer

This is n allowance from the Government to reduce the amount of tax owed.

Question 10

Benefit-in-kind

Accepted Answer

These are free goods and services given to employees such as the use of a company car for private use. The financial value of the B-I-K is included in Gross Income for taxation purposes.

Question 11

VAT- Value Added Tax

Accepted Answer

This is a tax on goods and services paid by the consumer and collected by business. Different rates apply to different goods and services.

Question 12

Gross Pay/Salary

Accepted Answer

This is the total amount of income earned before deductions are made.

Question 13

Net Pay/Salary

Accepted Answer

This is the total amount of income earned after all deductions have been made. Also known as take home pay.

Question 14

P60

Accepted Answer

This is given by the employer to all employees at the end of the tax year. It details gross income, all deductions and the net pay for the year

Question 15

P45

Accepted Answer

Cessation Certificate - this is given by the employer to the employee on leaving or redundancy during the tax year. It is given to the new employer or the Department of Social Protection.

Question 16

P12

Accepted Answer

All employees when starting work should fill in this form.

Question 17

P21

Accepted Answer

This is known as a Balancing statement and can be used to apply for a rebate in the event of over-payment of tax.

Question 18

Certificate of Tax Credits

Accepted Answer

This document is sent by the Revenue Commissioners to the taxpayer and it gives information about the amount of tax credits the employee is entitled to for the tax year. A copy is given to the employer.

Question 19

Direct Tax

Accepted Answer

This is a tax on income and is deducted at source.

Question 20

Indirect Tax

Accepted Answer

This is a tax on goods and services and is included in the price paid by the consumer.

Question 21

Progressive Tax

Accepted Answer

The more income that is earned the more tax that is paid.

Question 22

Regressive Tax

Accepted Answer

The rate of tax paid is not dependent on the income earned. The same tax is paid by everyone.

Question 23

CAT - Capital Acquisitions Tax

Accepted Answer

This is a tax on gifts and inheritances

Question 24

Customs Duties

Accepted Answer

These are taxes imposed on imports coming into Ireland  from countries outside the EU

Question 25

Motor Tax

Accepted Answer

This is a tax that must be paid annually on all roadworthy vehicles and is paid to the local authority.

Question 26

Excise Duties

Accepted Answer

These are taxes imposed on certain types of goods such as tobacco, alcohol and petrol.

Question 27

LPT - Local Property Tax

Accepted Answer

This is a tax paid on dwelling houses by citizens and it is paid to the local authority.

Taxation

Taxation for Household and Business

Question	Answer
CGT - Capital Gains Tax	This is a tax on profits made from the sale or disposal of an asset such of property or investments	This tax does not apply to the sale of a person's private home, lottery prizes, compensation payments or life assurance payments.
Corporation Tax	This is a tax on company profits. The current rate is 12.5%
PRSI - Pay Related Social Insurance	This is a compulsory insurance payment to the State and is calculated as a percentage of gross income.
USC - Universal Social Charge	This is a tax payable on gross income and applies to all taxpayers whether PAYE or self-assessment income tax.
Standard rate	This is the lower rate at which income is taxed - the current rate is 20%
Higher Rate	This is the higher rate at which income is taxed - the current rate is 40%
PAYE - Pay as you earn	This is a direct tax on income and is applied at a standard rate up to the Standard Rate Cut-Off Point. Then the Higher tax rate is applied to the remainder of gross income.
Standard Rate Cut-Off Point	This is the amount of income which is taxed at a lower rate. Any income above this amount is taxed at the higher rate.
Tax Credits	This is n allowance from the Government to reduce the amount of tax owed.
Benefit-in-kind	These are free goods and services given to employees such as the use of a company car for private use. The financial value of the B-I-K is included in Gross Income for taxation purposes.
VAT- Value Added Tax	This is a tax on goods and services paid by the consumer and collected by business. Different rates apply to different goods and services.
Gross Pay/Salary	This is the total amount of income earned before deductions are made.
Net Pay/Salary	This is the total amount of income earned after all deductions have been made. Also known as take home pay.
P60	This is given by the employer to all employees at the end of the tax year. It details gross income, all deductions and the net pay for the year	This document can be used as proof of income when applying for a loan/mortgage.
P45	Cessation Certificate - this is given by the employer to the employee on leaving or redundancy during the tax year. It is given to the new employer or the Department of Social Protection.
P12	All employees when starting work should fill in this form.	IThis form is used by the Revenue Commissioners to calculate the rate of tax that will apply and the amount of tax credits that the employee will be entitled oto
P21	This is known as a Balancing statement and can be used to apply for a rebate in the event of over-payment of tax.
Certificate of Tax Credits	This document is sent by the Revenue Commissioners to the taxpayer and it gives information about the amount of tax credits the employee is entitled to for the tax year. A copy is given to the employer.
Direct Tax	This is a tax on income and is deducted at source.
Indirect Tax	This is a tax on goods and services and is included in the price paid by the consumer.
Progressive Tax	The more income that is earned the more tax that is paid.
Regressive Tax	The rate of tax paid is not dependent on the income earned. The same tax is paid by everyone.
CAT - Capital Acquisitions Tax	This is a tax on gifts and inheritances
Customs Duties	These are taxes imposed on imports coming into Ireland from countries outside the EU
Motor Tax	This is a tax that must be paid annually on all roadworthy vehicles and is paid to the local authority.
Excise Duties	These are taxes imposed on certain types of goods such as tobacco, alcohol and petrol.
LPT - Local Property Tax	This is a tax paid on dwelling houses by citizens and it is paid to the local authority.

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