Hi
I was chatting with a few friends recently and a question came up, why don't the Revenue have the stockbrokers collect CGT at source ?
- it would save a lot of hastle for small investors (many of whom will probably admit they are slow to do returns, due to too paperwork, or make mistakes etc)
- it would ensure efficient collection of all tax (the CGT could be collected on sale of transactions, with Revenue getting dosh immediately rather than once a year)
- our annual CGT allowance could easily be applied for online / by post, after payment of tax (OK, it's then become a reclaim of tax paid, but not a big issue imho)
- granted, there is no easy way to show profits / losses on each individual transaction so those of us who make a loss would have to put in an annual claim for a loss to be recredited to us
Basically, my thinking is that by having the stockbrokers collect the tax at source the Revenue would be sure to get paid & get paid significantly quicker than at present.
Also, with dividends why not ask all Irish companies to deduct tax at source and pay it directly to the Revenue - questions arise as to whether they should deduct at the standard rate or higher rate I grant you, but either way, it would help Revenue get paid etc.
Ultimately, my thinking on the above is based upon a couple of key points:
- making the payment of tax easier, with less requirement on PAYE workers to complete an annual return, just because they bought a few shares etc
- ensure timely & efficient collection of taxes on both CGT and Dividends.
Any thoughts ?
Cheers
G>
I was chatting with a few friends recently and a question came up, why don't the Revenue have the stockbrokers collect CGT at source ?
- it would save a lot of hastle for small investors (many of whom will probably admit they are slow to do returns, due to too paperwork, or make mistakes etc)
- it would ensure efficient collection of all tax (the CGT could be collected on sale of transactions, with Revenue getting dosh immediately rather than once a year)
- our annual CGT allowance could easily be applied for online / by post, after payment of tax (OK, it's then become a reclaim of tax paid, but not a big issue imho)
- granted, there is no easy way to show profits / losses on each individual transaction so those of us who make a loss would have to put in an annual claim for a loss to be recredited to us
Basically, my thinking is that by having the stockbrokers collect the tax at source the Revenue would be sure to get paid & get paid significantly quicker than at present.
Also, with dividends why not ask all Irish companies to deduct tax at source and pay it directly to the Revenue - questions arise as to whether they should deduct at the standard rate or higher rate I grant you, but either way, it would help Revenue get paid etc.
Ultimately, my thinking on the above is based upon a couple of key points:
- making the payment of tax easier, with less requirement on PAYE workers to complete an annual return, just because they bought a few shares etc
- ensure timely & efficient collection of taxes on both CGT and Dividends.
Any thoughts ?
Cheers
G>