Chapter 9- Taxation Flashcards
What is tax?
Compulsory payment to government. Charged on income, business profits, or added to price of goods and services.
What is the Office of the Revenue Commissioners responsible for?
Collecting tax in Ireland.
What do the government use tax for?
Fund public services, e.g. schools.
Ensure equal distribution of wealth, e.g. tax charged on income.
Promote/ Discourage activities, e.g. reduce smoking.
What is PAYE?
Pay As You Earn:
Income tax paid on wages, deducted at source by employer and paid to the revenue.
What is USC?
Universal Social Charge:
Tax charged on income over certain amount.
What is VAT?
Value Added Tax:
Tax charged on goods and services, included in price.
What is LPT?
Local Property Tax:
Tax paid by owners of residential property.
What is VRT?
Vehicle Registration Tax:
Tax paid by those who purchase and register new car.
What is Motor Tax?
Compulsory for all vehicle owners, used to improve roads.
What is DIRT?
Deposit Interest Retention Tax:
Tax paid on interest earned on savings.
What is CAT?
Capital Acquisition Tax:
Tax paid on gifts and inheritance.
What is CGT?
Capital Gains Tax:
Tax paid on profits from sales of assets, e.g. property, investments.
What is Customs Duties?
Tax paid on goods imported into Ireland from foreign country.
What is Excise Duties?
Tax paid on certain goods, e.g. tobacco, alcohol, oil.
What is Stamp Duty?
Tax paid on written documents, e.g. transfers and leases of property.
What is CT?
Corporation Tax:
Tax paid on the profits of a company/ business.
What is a wage?
Payment received for work alone. Calculated on basis of work completed based on time or pieces made.
What is a salary?
Fixed annual payment made to employee. Usually paid in monthly installments.
Time Rate:
Wage calculated based on number of hours worked.
Piece Rate:
Wage calculated based on amount of work done.
Commission:
Payment received based on value of goods sold, motivates employees.
Overtime:
Payment for working more hours than ordinary working week.
Usually paid at higher rate, e.g. time and a half.
Bonus:
Extra payment received for reaching target or meeting deadline ahead of schedule.
Gross pay:
Pay before all deductions.