A) Income Tax - Schedule D Cas I/II

Question 1

SCH D Case I/II - Sources of Income

Answer 1

These are Schedule D

Case I: Self-Employment Income (Meets Badges of Trade)

Case II: Self-Employed from Profession or Vocation

Question 2

SCH D Case I/II - Rules for Income Tax and Corporate Tax

Answer 2

1. Net Profit per Accounts
2. Add back disallowed expenses
   3a. Deduct allowable expenses not already included in accounts.
   3b. Deduct INCOME not taxable under Cases I/II but are included in the net profit figure.
3. This is our Tax Adjusted Profits

Question 3

SCH D Case III

Answer 3

Irish Income from Investments RECEIVED IN GROSS,
All foreign income RECEIVED IN GROSS,
UK and other foreign dividends all received WITHOUT DEDUCTION of Irish Tax at source.

GROSS means received without Irish Tax

No deductible expenses

Only subject to DIRT Tax 33%

Case III is GROSS, Case IV is NET

Question 4

SCH D Case IV

Answer 4

Irish deposit Interest Received NET OF DIRT 33%)
Income received NET OF Stnadard Rate 20%
Miscellaneous income, dividends from unquoted Irish companies
- (Quoted Irish Companies Taxed under SCH F)

Case III is GROSS, Case IV is NET

Question 5

SCH D Case IV - Dealing with DIRT

Answer 5

Gross UP the receipt: Divide by .67 (100-33%)
Include a line item for DIRT with the standard tax bands
Include DIRT already paid with non-refundable tax credits

NOTE:No USC on interest, but there is PRSI, that’s why it’s included in the tax computation, to calculate PRSI