Tax calculations - Rounding of decimals

M

myle

Guest
Hi

I am working on the formula for Agricultural relief. To qualify the agricultural assets must be 80% of all assets - at the moment my calculation is working out at 79.70%. Does anyone know if the Revenue will accept this as being 80% so that I pass and am entitled to claim the relief?

Thanks
 
Probably not, even if it was 79.99, what prevents you from making a 2nd calculation ? Ever heard of creative accounting ? How do you think the Government always "meets" it's numbers
 
Luke Walle said:
Ever heard of creative accounting ?
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Ever heard of penalties / fines for filing a false tax return or for claiming reliefs which were not properly due. :rolleyes:

That being said, in accounting terms my ( and probably other's ) normal practice would be to treat 0 to 49 as rounding down and 50 to 99 as rounding up. So that 79.49% becomes 70% and 79.53% becomes 80% when it is necessary or convention to show figures with no places after the decimal. The correct figure is that which shows however many decimals as the individual situation requires and I would not automatically assume that 79.70% equates to 80% in Revenue terms. The actual legislation relating to Agricultural Relief states "....an individual in respect of whom not less than 80 per cent of his or her assets . . . " . I would think specific clarification be obtained to ensure no ambiguities or possibility of withdrawal at a later stage.
 
Thanks Graham
Yeah when you read it correctly as saying
"....an individual in respect of whom not less than 80 per cent of his or her assets . .
then yes you are right and I will not qualify.
Can't believe I miss out over a .3 of 1%.
 
Don't forget also that you can deduct the value of your PPR mortgage off the market value of your house for the purposes of the 80% test.

Also, you can claim agricultural relief in respect of woodlands even if the 80% test is not satisfied.
 
myle said:
Thanks Graham
Yeah when you read it correctly as saying
"....an individual in respect of whom not less than 80 per cent of his or her assets . .
then yes you are right and I will not qualify.
Can't believe I miss out over a .3 of 1%.
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Hire an accountant to do the math for you, after you pay his fees you're guaranteed to be much poorer so you'll qulify

The law is inhumane, dont expect to be treated like a human being, you're just a Statistic to them, defend you're sefl!

I missed out on thousands because of laws written by people who either didn't know what they where doing or exactly knew what they where doing, never bend over to the system.

It's a simple caclutaion if .3% of you\'re assets < than the amout you'd be gaining withdraw the money from the bank put on some gasoline and torch it !

The law is written by accountants and lawyers who make double sure they fleece you out you're last penny.
 
Thanks for the advice. You see its slightly more complex as I am trying to sort this out for my father who is deceased so it’s his tax liability which passes to me to pay so his assets are set in stone if you know what I mean. The figures are what they are and are documented with solicitor. Yeah if I had know this prior (of course hindsight is a great thing) I would have made him spend & enjoy the few thousand euro he had saved!! And I mean a few - we are not talking large sums here.
 
Luke Walle said:
Hire an accountant to do the math for you, after you pay his fees you're guaranteed to be much poorer so you'll qulify


The law is written by accountants and lawyers who make double sure they fleece you out you're last penny.
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Sorry for asking, but is that you Rabbit under a new username ? Your style is so similar. ( sorry if have the wrong guy but if I have the right guy I'm glad to see you haven't mellowed ;) )
 
No it's not "Rabbit" but it's good to know that more ppl have their facts straight ;)
 
Luke Walle said:
No it's not "Rabbit" but it's good to know that more ppl have their facts straight ;)
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There are idiots and crooks in all trades/professions and one would be foolish not to admit it. Accountants are only the A in that book. The difficulty comes when one gets so focused on the hurt or damage done by a small number of that certain trade or profession that it brings one to tar all with the same brush which is a pity.
 
Another question in relation to Agricultural Relief, the value of your PPR is counted and I have been told your car too! So for example, if my DH were calculating his assets, is the total value of the family home counted or just his half ? And if the family car were in my name? As the OP said, it could make a difference to a point of a percent.
 
headache said:
Another question in relation to Agricultural Relief, the value of your PPR is counted and I have been told your car too! So for example, if my DH were calculating his assets, is the total value of the family home counted or just his half ? And if the family car were in my name? As the OP said, it could make a difference to a point of a percent.
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Yes, if the car was in your name then that could be removed from the equation.

On the family home, the legislation states property which he is "beneficially entitled in possession". You may have to ask a legal expert with Capital Acquisitions Tax knowledge on this but when you have a jointly purchased property do you each own half the house or do you each own all the house as it passes to the survivor. ( maybe one of our esteemed AAM legal eagles would clarify this ? ).

For reference the legislation on Ag Relief is Section 89 of the Capital Acquisitions Tax Consolidation Act 2003
 
Thanks Graham.
Silly things bother me and I found myself wondering if a husband and wife were both to inherit farms (which would make them very lucky), the family home would be counted both times as an asset when each person was assessing their gross assets. A situation rare as hen's teeth no doubt but my mind does wander off down these strange tracks sometimes! :)
 
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