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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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