Taxation

Cards (14)

  • taxation
    money that all businesses and households must pay to the governmen. the govt uses this to run the country. min of finance decides amount of txes we pay
  • reasons for taxation
    raise money
    redistribute wealth
    discourage consumption
  • similarities between households and business taxation

    register
    penalties
    records and forms
    VAT
    tax credits
  • differences between households and business taxation
    types
    VAT
    tax collectors
    collection methods
    tax audits
  • types of taxes
    corporation tax
    motor tax
    PAYE
    USC
    PRSI
    Icome tax
    VAT
    capital gains tax (CGT)
    capital acquisition tax (CAT)
    deposit interest retention tax (DIRT)
    custom duties
    excise duties
    commercial rates (business)
    local property tax (households)
    sugar tax
    carbon tax
  • tax avoidance
    method of reducing tax bill by taking advantage of loopholes in system to legitimately save money
  • tax evasion
    practise of knowingly failing to honour ones tax commitments to save money. it is illegal
  • benefits of PAYE modernisation for a business

    minimise costs
    seamless
    right tax
  • benefits of PAYE modernisation for an employee

    simplified
    automatic review
  • tax rate
    percentage charged for a certain tax. Paye is payed at 2 different rates 20 and 40 %. rate depends on level of taxable income
  • tax credits
    entitlement to different allowances depending on each persons personal circumstances which will reduce tax liability calculated on a persons tax (PAYE only)
  • tax bands
    a person is charged at different rates of tax depending on which bracket if earning they fall into
  • features of PAYE tax system

    progressive tax
    efficient
    direct
    register online
    indirect tac
    regressive
  • effects of taxation
    lower profits
    lower sales
    increased costs
    less overtime