Second Year Test 1 Flashcards
Define the term taxation
Taxation is the way the government collects money to pay for public services
Who is responsible for collecting tax
The office of the revenue commissioner is the state body responsible for collecting all tax’s in the Republic of Ireland
What is progressive tax
Progressive tax is one where the tax rate increases as income increases. The more you earn the more taxation you pay
Define the term regressive taxation
Regressive taxation are tax’s that affect low income earners by taking a high percentage of income
What is direct tax
Direct tax is paid on income earned. Eg. PAYE is deducted from your wages
Define the word dirt
Dirt is a tax on the interest you earn on your savings
Define the term PAYE
PAYE is tax payed on the income that you have earned
What is self assessed income
Those who are self employed or earn income pay this tax
What is USC
USC is tax payed in addition to PAYE and everyone has to pay it
Define the term VAT
VAT(value added tax) is a tax on goods and services. Eg.bread
What are custom duties
Custom duties is tax on imported goods from outside the EU
Define the term excise duties
Excise duties is a tax on certain goods. Eg. Petrol and diesel
What is local property tax
Tax payed by owners of residential properties
What is stamp duty
It is tax charged on some written documents. Eg. If you want to buy a house and have saved up you will have to save up extra money to pay this tax
What is motor tax
Tax charged on motor vehicles. Eg. Cars
Define the term vehicle registration tax
It is a once off tax payed for new cars
What is deposit interest retention tax
It is tax earned on your savings
Define the term capital gains tax
Capital gains tax is if you by a share of a company and sell it you will have to pay tax on that
What is capital acquisition tax
It is a tax on money you inherit left to you be someone over a certain amount
What is tax evasion
Tax evasion is illegal and usually happens when people declare some or all of their income
Define the term tax avoidance
Tax avoidance is perfectly legal.eg. Revenue allows eligible taxpayers to claim certain tax credits
What is government revenue
Government revenue refers to all money received by the government
Define the term current revenue
Current revenue is money received by the government on a regular ongoing or day to day basis. Most of this revenue comes from taxation. Eg VAT
Define the term capital revenue
Capital revenue is money received on an irregular or once off basis. This is mainly non-tax revenue. Eg. EU grante