In calculating the "average" tax rate for the past 3 years, what is taken into account in determining gross pay?
For example, we have a Revenue-approved employee share purchase scheme whereby we can "forego" some salary (though it still appears in the payslip) to buy shares tax-free. We can also contribute AVC's on the same tax-free basis. Both of these considerably reduce the tax paid.
The question is: are both of these items allowable in determining the average tax rate or not? Obviously, if they are included, the average tax rate becomes very low. Any thoughts?
For example, we have a Revenue-approved employee share purchase scheme whereby we can "forego" some salary (though it still appears in the payslip) to buy shares tax-free. We can also contribute AVC's on the same tax-free basis. Both of these considerably reduce the tax paid.
The question is: are both of these items allowable in determining the average tax rate or not? Obviously, if they are included, the average tax rate becomes very low. Any thoughts?