Taxation

Question 1

PAYE: Pay As You Earn

Answer 1

this is a type of income tax that people pay on their wages. This is deducted at source by the employer and paid to the revenue.

Question 2

PAYE Stands for

Answer 2

Pay As You Earn

Question 3

USC Stands for

Answer 3

Universal Social Charge

Question 4

USC: Universal Social Charge

Answer 4

this is a tax charged on income over a certain amount.

Question 5

VAT stands for?

Answer 5

Value Added Tax

Question 6

VAT: Value Added Tax

Answer 6

this is tax charged on goods and services. This is included in the price you pay to the shopkeeper.

Question 7

LPT stands for?

Answer 7

Local Property Tax

Question 8

LPT: Local Property Tax

Answer 8

this is a tax paid by owners of residential property

Question 9

VRT stands for?

Answer 9

Vehicle Registration Tax

Question 10

VRT: Vehicle Registration Tax

Answer 10

this is a tax paid by those who purchase and register a new car

Question 11

Motor Tax

Answer 11

this is a compulsory tax paid for all owners of a vehicle. This money is used to improve roads.

Question 12

DIRT stands for?

Answer 12

Deposit Interest Retention Tax

Question 13

DIRT: Deposit Interest Retention Tax

Answer 13

this is a tax paid on interest earned on savings

Question 14

CAT stands for?

Answer 14

Capital Gains Tax

Question 15

CGT: Capital Gains Tax

Answer 15

this is a tax paid on the profits made from the sale of assets e.g. property & investments

Question 16

Customs Duties

Answer 16

a tax paid on goods imported into Ireland from a foreign country.

Question 17

Excise Duties

Answer 17

a tax paid on certain goods e.g. oil, alcohol, tobacco.

Question 18

Stamp Duty

Answer 18

this is a tax paid on written

documents e.g. property

Question 19

Direct Tax

Answer 19

Direct Tax is charged as income is earned. It is deducted at source. This means that the tax is charged by the person who pays the income not the person who earns the income e.g. PAYE is deducted by the Employer and paid to the Revenue.

Question 20

Indirect Tax

Answer 20

Indirect Tax is charged as income is spent on goods and services e.g. VAT is included in the price of goods in a shop. These are paid directly to the Revenue by the shopkeeper.