If an Approved Retirement Fund (ARF) policyholder requests a yearly withdrawal from thier policy, but has not submitted a Tax Cert to the Qualifying Fund Manager (QFM), should the QFM apply Emergency Tax Rules or deduct tax at 41% on the lot?
For example, assuming the QFM has the policyholders PPS number but has no tax cert, if the policyholder requests an annual income of €5,000 is the tax due a or b below (assuming 2007 figures):
a)
Amount Requested €5,000
Tax on first €2,834 @ 20% = €566.80
Tax on balance @ 41% = €888.06
Gross Tax €1,454.86
less Tax Credit of €147
Tax Payable = €1,307.86
OR
b)
Amount Requested €5,000
Tax on €5,000 @ 41% = €2,050
Tax Payable = €2,050
Many thanks
For example, assuming the QFM has the policyholders PPS number but has no tax cert, if the policyholder requests an annual income of €5,000 is the tax due a or b below (assuming 2007 figures):
a)
Amount Requested €5,000
Tax on first €2,834 @ 20% = €566.80
Tax on balance @ 41% = €888.06
Gross Tax €1,454.86
less Tax Credit of €147
Tax Payable = €1,307.86
OR
b)
Amount Requested €5,000
Tax on €5,000 @ 41% = €2,050
Tax Payable = €2,050
Many thanks