Similar with being reported for most crimes really, if followed you you'll be looking at a record and a fine. The legislation allows for up to 6 months prison term, but that's very unlikely for a first offence.
Similar with being reported for most crimes really, if followed you you'll be looking at a record and a fine. The legislation allows for up to 6 months prison term, but that's very unlikely for a first offence.So what if they report you?
Where is the crime? You offer a service at set market price. You then grant a mutually agreed discount and get paid the remainder. No crime there, let alone one that would warrant imprisonment.Similar with being reported for most crimes really, if followed you you'll be looking at a record and a fine. The legislation allows for up to 6 months prison term, but that's very unlikely for a first offence.
My apologies, I thought you were a tax expert.You tell me. This is the first I've heard of this term and I've been doing this since
Where have I made such a claim?My apologies, I thought you were a tax expert.
You make an informal agreement to charge a tenant less than specified on the lease, so making them aware that you may increase the actual rent by more than the limits after they leave. They could choose to report you. The 2% limit applies to the rent being charged, not some notional figure.
It is also an offence to fail to provide an accurate notice of rent in writing to a tenant.
Any alteration needs to follow the legislated process including advance notice and confirmation of the new rent in writing.You then grant a mutually agreed discount and get paid the remainder.
So if you owe me €1,000 in rent and I want to give you €50 off, it's a crime to do so unless I give you advance notice of the discount and confirmation in writing.Any alteration needs to follow the legislated process including advance notice and confirmation of the new rent in writing.
If you want to give me €50 off, that's a change in the agreed rent. The legislation is quite clear.So if you owe me €1,000 in rent and I want to give you €50 off, it's a crime to do so unless I give you advance notice of the discount and confirmation in writing.
Pull the other one.
I'm no lawyer but if the law is that much of an ass, we're in even bigger trouble than I'd thought.If you want to give me €50 off, that's a change in the agreed rent. The legislation is quite clear.
I didn’t say you made such a claim.Where have I made such a claim?
I’m not sure where this attitude is coming from - I certainly don’t think I am superior to you or anybody else on this forum.Just because you can raise an obscure red herring doesn't confer any level of superiority on you.
The legislation is frames to protect tenants, and giving them certainty of rent is perfectly reasonable in that regard. Even in the case of a reduction, it protects them from a landlord later changing their mind and seeking arrears.I'm no lawyer but if the law is that much of an ass, we're in even bigger trouble than I'd thought.
Well who did?I didn’t say you made such a claim.
What impression.It’s just that your strong views on the correct tax position gave me that impression.
Your problem frankly. I am an accountant with 34 years experience. Probably all worthless, but who am I to judge? Here, you are a nameless nobody.Again, my apologies for mistakenly understanding that you were a tax expert.
You belittled my level of expertise.I’m not sure where this attitude is coming from - I certainly don’t think I am superior to you or anybody else on this forum.
Your problem.More to the point, I don’t see how this point could possibly be considered a red herring.
Substance over form.The OP could end up paying tax on the contracted rent less deductible expenses, with no relief for the waived rent. Obviously not a good result.
If the legislation actually prohibits the granting of a discount, it is eminently unreasonable. Trade discounts are commonplace in business transactions and there's never any question of suppliers changing their mind and successfully obtaining arrears.The legislation is frames to protect tenants, and giving them certainty of rent is perfectly reasonable in that regard. Even in the case of a reduction, it protects them from a landlord later changing their mind and seeking arrears.
It has nothing to do with form over substance.Substance over form.
But we're not talking about business transactions here, tenancies are covered by separate legislation that is quite clear.If the legislation actually prohibits the granting of a discount, it is eminently unreasonable. Trade discounts are commonplace in business transactions and there's never any question of suppliers changing their mind and successfully obtaining arrears.
It has nothing to do with form over substance.
The legislation is clear that tax is payable on the contracted rent, less allowable deductions. Tax is not payable on the rent actually received - it is payable on the rent arising under the lease (ie the contracted rent).
There is a relief available where a tenant defaults or where rent is waived to avoid hardship but that wouldn’t appear to be applicable here.
I’m surprised that an accountant with 34 years’ experience wasn’t aware of this but I totally accept that you are not claiming to be an expert.
I guess so but that has nothing to do with the income tax position.Could the difference be written off as a gift provided it were under the three grand limit?
So if I rent a field off you and the contract says €500 a year but I pay you €5,000, you're only liable for tax on €500?It has nothing to do with form over substance.
The legislation is clear that tax is payable on the contracted rent, less allowable deductions. Tax is not payable on the rent actually received - it is payable on the rent arising under the lease (ie the contracted rent).
Red herringThere is a relief available where a tenant defaults or where rent is waived to avoid hardship but that wouldn’t appear to be applicable here.
Whatever about getting personal towards me once, your doing so repeatedly suggests something approaching contempt on your part. If I've done something on you to warrant all this, I humbly and unreservedly apologise. If I haven't, do let me know.I’m surprised that an accountant with 34 years’ experience wasn’t aware of this but I totally accept that you are not claiming to be an expert.
It's clearly not a gift though. Any more than a business trade discount is.In theory, could the difference be written off as a gift provided it were under the three grand limit?
This is not vaguely analogous though.Trade discounts are commonplace in business transactions and there's never any question of suppliers changing their mind and successfully obtaining arrears.