Chp 11: insurance and tax (2)

Question 1

2 characteristics of PAYE

Answer 1

direct tax on income

deducted by employer and sent to revenue commissioners every month

Question 2

business implications of PAYE

Answer 2

progressive and administrative cost and efficient

Question 3

3 characteristics of VAT + percentage

Answer 3

indirect tax on goods and services
businesses register and receive vat no.
remitted every 2 months to revenue commissioner 
23%
0% on medicine

Question 4

3 business implications of VAT

Answer 4

administrative cost, it increases cost for consumers, it was reduced to 9% in tourism which increased jobs

Question 5

3 characteristics of corporation tax

Answer 5

tax on profits made by companies
12.5%
companies must prepare annual final accounts to show taxable profit

Question 6

2 business implications of corporation tax

Answer 6

low in Ireland

decreased profit = decreased earnings

Question 7

describe tax rates

Answer 7

income taxed at two different rates which depend on taxable income
20% and 41%

Question 8

describe tax credits

Answer 8

deductions in tax due to personal circumstances
reduce tax liability calculated on gross pay
non refundable

Question 9

describe p60

Answer 9

issued to employer at the end of a financial year
it shows gross pay, income tax and prsi paid that year
you need it when claiming on overpaid tax

Question 10

describe p21

Answer 10

all pays taxpayers are entitled to request this form from inspector of taxes
it is a end of year summary on employees tax situation
it will indicate if tax has been over or under paid and then the inspector of taxes will either refund or demand tax.