Search Results for 'Tax'

This year, the budget has received a very mixed reaction from the general public. It was lauded as a budget to be feared and there was a lot of kite-flying of very scary issues which never materialised or that materialised in a toned down manner and this has left some, feeling somewhat relieved.

Things are heating up - not necessarily in terms of the upcoming festive season - or indeed in regard to outside temperatures, but just in a general sense. After the historic events of the week - the lacklustre Taoiseach State-of-the-nation address on Sunday followed by the half-and-half ‘slash and burn’ budget over Monday and Tuesday, a new force is building. It is not a positive force. The momentous proceedings of the past week put paid to any chance of positive people-power being harnessed. If anything, the spirit is sapped.

IBEC, the group that represents Irish business, has stated that the Government has relied too heavily on increasing tax in Budget 2012, rather than reducing current expenditure. The group welcomed specific measures aimed at supporting R&D and financial services, attracting mobile talent and restoring normal activity to the property market, but said the scale of these positive measures was small when compared to the very negative effect of the €90 million increase in employer PRSI charges and the major reduction in the redundancy rebate, announced yesterday. The total cost of Budget 2012 to business will be in the region of €400 million.

Budget 2012 is unique in that the proposed expenditure cuts were announced a day ahead of the tax changes and also many of its provisions were well flagged ahead of Budget Day. The financial adjustment was set at €3.8bn with €2.2bn coming from expenditure cuts and €1.6bn coming from increased taxation. Despite all the advance leaks and speculation the Minister managed to keep a number of the changes secret until the Budget Speech especially in the area of incentives to business and measures to kick start the property market.

One of the most anticipated Budgets of recent times was presented by Minister Noonan this week. Although, many of the measures announced had been expected, there were a few surprises.

Abolishing the Universal Social Charge for 330,000 of the most vulnerable low-paid workers marks the reversal of a “crude mechanism that hit all workers regardless of low income”.

Over recent weeks, there has been much speculation on the provisions to be announced in Budget 2012. The anticipation was heightened by the “State of the Nation” address by An Taoiseach Enda Kenny on Sunday night. In an unprecedented move, Minister Howlin and Minister Noonan shared the burden and spread their respective speeches over two days. Some of the main features introduced in the 2012 Budget are set out below:

The Government must introduce relief from capital gains tax for farm consolidation if there is to be an increase in land mobility, according to Kilkenny IFA farm business chairman John Bambrick.

The issue of inheritance and gift tax (CAT) is becoming more important to many people because of the reduction in the amount an individual can receive tax free. When an individual decides to transfer his/her assets to another person, either by gift or on their death, assets over a certain value will attract CAT. The current rate of tax is 25 per cent, there is speculation that it will increase in the upcoming budget. It is important that individuals plan the transfer of assets in a tax efficient manner, as many people may be forced to sell assets they have been gifted or left on an individual's death in an attempt to pay the CAT liability.

Two of Westmeath’s most famous musicians, Foster and Allen, are to appeal a High Court judgement handed down this week (November 22) after the unsuccessfully defended demands from the Revenue Commissioners totalling €6.33 million, despite the judge sympathising with the duo over their being defrauded by disgraced accountant Patrick Russell.