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Tax
Deadlines
Income Tax and
Capital Gains Tax
7 December 2005
Budget Day 2006. Anti-avoidance measures (if any)
may take effect from this date.
31 December 2005
The Revenue Commissioners indicated in Tax Briefing
Issue 60, that with effect from 31 December 2005,
capital allowances will no longer be available for
capital expenditure incurred on the construction of
buildings or structures in caravan parks (whether
registered with Failte Ireland or not). Allowances
in respect of expenditure incurred before that date
will not be affected.
31 December 2005
End of the 2005 income tax year. Appropriate tax shelters
such as ‘Section 23’ property or film
investments must be acquired by this date to be effective
for 2005. Also, some exemptions and allowances are
required to be claimed in a specific tax year including
claims for artist exemption (Section 195 TCA 97) and
tax relief for expenditure on significant buildings
(Section 482 TCA 97).
31 December 2005
Every individual is entitled to a small gains tax
exemption of €1,270 per annum. This exemption
cannot be transferred and is lost if not used by the
end of the tax year. The first €3,000 of the
total value of gifts received from any one individual
in any tax year is exempt from gift tax. Unused exemptions
cannot be carried forward to later years so the timing
of gifts should be considered.
31 December 2005
An employees’ PRSI threshold of €44,180
applies for 2005. In view of this PRSI ‘holiday’
the timing of payments to employees earning over this
cap should be considered, particularly if it is anticipated
that employees will earn less than the 2006 cap (not
yet announced).
31 December 2005 Capital losses arising
on or before 31 December 2005 may be offset against
gains arising in 2005. Unused capital losses may be
carried forward, there is no provision to carry capital
losses back. Therefore, if capital gains arise in
2005, it may be more advantageous to crystallise losses
in 2005 rather than in 2006.
31 December 2005
Under ‘margin of error’ provisions, individuals
may make income tax top up payments by 31 December
2005 in respect of 2004 and thereby avoid an interest
liability on underpayment of income tax (subject to
certain parameters and conditions).
1 January 2006
On 12 April 2005 a new double taxation agreement between
Ireland and Canada entered into force. The revised
agreement will apply from 1 January 2006.
The new treaty will cover transactions subjected to
CGT for the first time. In addition, new articles
dealing with dividends, interest and royalties generally
provide for lower withholding taxes than apply at
present. On a less positive note certain tax exemptions
will be removed and the tax credit available on Canadian
dividends paid to Irish individuals will be substantially
reduced.
A tax treaty with Chile was signed in 2005. If ratification
procedures are completed in 2005, this treaty will
also be in force from 1 January 2006.
1 January 2006
With effect from 1 January 2006, ATM cards,
Laser cards and combined cards will be exempt from
a second or subsequent charge to stamp duty arising
from the switching of accounts within a financial
institution or from one financial institution to another,
in the same year. (The change in relation to credit
cards and charge cards took effect from 2 April 2005).
31 January 2006 The payment of capital
gains tax (CGT) arising on disposals in the period
1 October 2005 to 31 December 2005 is due by 31 January
2006.
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