Problem with income tax calculation in online Form 11

[daheff]

My colleagues attended an Irish tax institute conference today joined by revenue and one of the points mentioned was


"Revenue are aware of Form 11 issues and are currently working on or have already resolved same. Eg DIRT was being charged at 40% and this is now corrected to 33%.

So having gone back into ROS and the Form 11, it now seems that its change calculations (again).
No DIRT is no being calculated for me, whereas it had done so at 40%. Income continuance was not attracting a credit, but is now.

@Mathematician if you get a chance can i trouble you to check if your return is still showing a DIRT amount @40% please? ...or anybody else who is in process of preparing a return.

 

[Mathematician]

So having gone back into ROS and the Form 11, it now seems that its change calculations (again).
No DIRT is no being calculated for me, whereas it had done so at 40%. Income continuance was not attracting a credit, but is now.

@Mathematician if you get a chance can i trouble you to check if your return is still showing a DIRT amount @40% please? ...or anybody else who is in process of preparing a return.

Ah yes, there has been a change. Things are improving, for me, the only thing wrong now is that the interest is not shown sparately at 33% as it should be, it is lumped in at 40%.

 

[Towger]

Check it against their previous calculations.
They now appear to be adding in the DIRT into the higher rate figure. So still taxed at 40%, but the fact is hidden. I have a pdf with revised assessment generated last night where they did this. The original had the DIRT as a separate entry at 33%.

 

[daheff]

Check it against their previous calculations.
They now appear to be adding in the DIRT into the higher rate figure. So still taxed at 40%, but the fact is hidden. I have a pdf with revised assessment generated last night where they did this. The original had the DIRT as a separate entry at 33%.

Ah -I didn't notice it was thrown in with the 40% line. Likewise I had it detailed separately (albeit at 40%). Almost like Revenue are now trying to hide that its 40%. Gets murkier and murkier.

@Mathematician appreciate you checking also!

 

[daheff]

Also if somebody can explain to me why having entered 980 under "Foreign Income from securities/possessions" it becomes 947 on the summary income, that would be appreciated. I guess its something to do with tax already charged of 260 EUR? Works out about 12.7% reduction of the income amount.

Edit- I reckon this is a rounded 12.5%.

 

[Ciru75]

Also if somebody can explain to me why having entered 980 under "Foreign Income from securities/possessions" it becomes 947 on the summary income, that would be appreciated. I guess its something to do with tax already charged of 260 EUR? Works out about 12.7% reduction of the income amount.

Edit- I reckon this is a rounded 12.5%.

It's probably part of double taxation relief. If the effective rate of foreign tax is higher than the effective rate of Irish tax, you can get some of the relief as a deduction against the income and some as a credit.

 

[businesscohub]

Also if somebody can explain to me why having entered 980 under "Foreign Income from securities/possessions" it becomes 947 on the summary income, that would be appreciated. I guess its something to do with tax already charged of 260 EUR? Works out about 12.7% reduction of the income amount.

Edit- I reckon this is a rounded 12.5%.

The 12.5% reduction you've talked about is likely due to the upfront withholding of foreign tax on your investment income.