credit card tax

Re: .....

I didn't get charged on my CC until the following April after opening a few years ago so it does make sense that the tax paid is for up to March of 2003. However I'm still not sure that I need to close my account before Jan the first in order to avoid having to pay twice next April. I too, am waiting for the budget before persuing this seriously but as Garrett mentioned I dont hold much hope of any change. I dont see how changing to a tenner every three months would bother the gov. as the banks are doing their collection for them so it's no skin of their nose. Ohh, I'm day dreaming again aren't I ....

Hi G

There is nothing wrong with your memory.

I contacted MBNA last Jan in relation to closing down my a/c with them. I was informed (I asked her to repeat it) that my tax was duly paid for the year April 2002/2003 and that if I were to close my a/c that I would not have to pay the tax.

Having read the Shanks1 last evening, I contacted MBNA and lo and behold ... the goalposts have changed! It is now dealt with on a retrospective basis.

I was down in my BOI today to check out their a/c. They also say that the payment is retrospective. I have yet to check out AMEX to see what their policy is.

How did we miss the change? Was it changed. If not why are the banks singing from the same hymn sheet?

Marion :hat

I talked to the visa unit of EBS today and they have informed me that the tax year for CCs is April to March which seems to contradict what Rainyday said earlier. This whole thing stinks as far as I can see. Once again all we can do is wait for clarification in the budget. Was there not something about closing the loophole of shutting down one account and re-opening after April to avoid the tax ? I think this was the change from last year except no-one dared tell the public in case they might start blocking bank officials cars and refusing to apoligise so they can get thrown in jail ......

they have informed me that the tax year for CCs is April to March which seems to contradict what Rainyday said earlier.

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I'm open to correction (as always). I do recall a knowledgable individual posting the updated version of the legislation which seemed to indicate a Jan-Dec tax year, though I could be wrong.

Amex has the same story. The tax is retrospective.

What this means is that if we decide to switch cards at any time, we will pay €120.

We have paid €40 in April
We pay €40 to close the account
We pay €40 to open a new account.

This is a complete ripoff!

Marion :hat

What this means is that if we decide to switch cards at any time, we will pay €120.

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Hi Marion - I think this is overstating the problem a bit. Yes - you would have paid €120, but that would have covered you for two full tax years. It's really only the extra €40 that you pay.

Note that I'm not defending the tax. It should be reverted back to the old rule of a fixed annual fee for each account open on a specific date of the year.

Hi Marion - The only answer is to close in Dec/Mar depending on what the correct CC tax year is and re-open a new account in Jan/Apr. This way at least you will only get charged €40 for closing and €40 for opening after the date.
I'm hoping the next budget will give clear indications on this charge and the actual time being paid for. Hopefully someone will bring it up on the telly debates around the time.

Hi Elcato

You are right.There is a complete lack of clarity in relation to this issue.

I was hoping to do a balance transfer and so I don't think I would have control over the dates.


Marion :hat

ALL of my christmas shopping is being done online this year and with foreign companies. Saving much more than €40 when compared to prices in Irish shops, and depriving Charlie of his VAT to boot. Postage from the UK for everything I bought worked out less than a days parking in Dublin city.

Send your money out of the Irish Economy this Christmas. It's what your government apparently wants you to do.

Honestly I think Charlie couldn't figure out a way of making money from online purchases, and that's where the €40 came from. Well, so be it.

I don't expect any change in the Budget, and I certainly don't expect any clarification.

-Rd