M
manning9
Guest
Hello Group,
I posted on this topic a while back and thought I had the answer, however, my accountant has included the gross interest earned on deposits in calculating my Income tax. I had thought that DIRT satisfies all liability on deposit interest ? http://www.revenue.ie/en/tax/dirt/index.html
The calculation is (example figures)
Net Profit 30,000
Deposit Interest 5,000
Total 35,000
Less Capital Allowance -3000
Pension on Net Relevant Earnings 5,000
TOTAL 27,000
Tax at 20% of 27,000 = 5,400
Less Personnel Credit 1830
DIRT Credit 885
TAX 2,685
What I dont understand is why is Deposit Interest included as Income, when the Revenue say that ""D.I.R.T. is a final liability for income tax purposes, i.e. the
payment of retention tax at the standard rate by individuals liable to
income tax at the higher rate is regarded as satisfying the
individual’s full liability to this tax."
Thanks for your help. Confused sole trader.
I posted on this topic a while back and thought I had the answer, however, my accountant has included the gross interest earned on deposits in calculating my Income tax. I had thought that DIRT satisfies all liability on deposit interest ? http://www.revenue.ie/en/tax/dirt/index.html
The calculation is (example figures)
Net Profit 30,000
Deposit Interest 5,000
Total 35,000
Less Capital Allowance -3000
Pension on Net Relevant Earnings 5,000
TOTAL 27,000
Tax at 20% of 27,000 = 5,400
Less Personnel Credit 1830
DIRT Credit 885
TAX 2,685
What I dont understand is why is Deposit Interest included as Income, when the Revenue say that ""D.I.R.T. is a final liability for income tax purposes, i.e. the
payment of retention tax at the standard rate by individuals liable to
income tax at the higher rate is regarded as satisfying the
individual’s full liability to this tax."
Thanks for your help. Confused sole trader.