Menu
16/04/2009
Taxing Times In Dáil
As opposition parties united in their objections to the decision to backdate the new income levy rates, the Department of Finance is expected to issue 'clarification' on the issue of newly introduced income levy rates.
Criticism has been growing over plans to apply the taxes retrospectively after the news emerged yesterday that the Government is to backdate the new higher income levy rates for some taxpayers.
They said initially that new rates announced in last week's supplementary Budget are to be backdated to the start of 2009, despite earlier indications that the new rates would come into force on May 1st.
The move will hit anyone who has received a lump sum payment in the first four months of 2009 or those who have were given bonuses.
The 21,000 people made redundant this year will also be hit by the plan.
While statutory redundancy payments are not subject to the income levy many of those taking voluntary redundancy pay the levy on part of their lump sum.
They will now be paying more than the 1% levy they initially assumed to be their maximum exposure under the levy.
The Dáil has today heard Fine Gael calling on Minister for Finance Brian Lenihan to close the "scandalous" loophole.
"Thousands of people who have been made redundant by the end of April are likely to have the new income levy backdated on a portion of their redundancy payments, even though the higher levy only kicks in on May 1st", said Deputy Leader and Finance Spokesman Richard Bruton.
Labour Party Finance Spokeswoman Joan Burton said any attempt by the Government to backdate the higher rates of income levy to the beginning of the year would be "morally unjust and legally dubious."
The Irish Times has this morning reported that the Department of Finance "statement on the issue" would be published later today.
See: Economic Recovery Is Irish Budget's Aim
(BMcC/KMcA)
Criticism has been growing over plans to apply the taxes retrospectively after the news emerged yesterday that the Government is to backdate the new higher income levy rates for some taxpayers.
They said initially that new rates announced in last week's supplementary Budget are to be backdated to the start of 2009, despite earlier indications that the new rates would come into force on May 1st.
The move will hit anyone who has received a lump sum payment in the first four months of 2009 or those who have were given bonuses.
The 21,000 people made redundant this year will also be hit by the plan.
While statutory redundancy payments are not subject to the income levy many of those taking voluntary redundancy pay the levy on part of their lump sum.
They will now be paying more than the 1% levy they initially assumed to be their maximum exposure under the levy.
The Dáil has today heard Fine Gael calling on Minister for Finance Brian Lenihan to close the "scandalous" loophole.
"Thousands of people who have been made redundant by the end of April are likely to have the new income levy backdated on a portion of their redundancy payments, even though the higher levy only kicks in on May 1st", said Deputy Leader and Finance Spokesman Richard Bruton.
Labour Party Finance Spokeswoman Joan Burton said any attempt by the Government to backdate the higher rates of income levy to the beginning of the year would be "morally unjust and legally dubious."
The Irish Times has this morning reported that the Department of Finance "statement on the issue" would be published later today.
See: Economic Recovery Is Irish Budget's Aim
(BMcC/KMcA)
Related Irish News Stories
Click here for the latest headlines.
12 February 2009
Ryanair Expands Flights From Belfast
While Ryanair has revealed plans for cuts to its services from Dublin, it has also just announced expansion to its Belfast service.
Ryanair Expands Flights From Belfast
While Ryanair has revealed plans for cuts to its services from Dublin, it has also just announced expansion to its Belfast service.
30 January 2012
Thousands Of PRSI Workers To Be Refunded
Tens of thousands of workers will receive a refund after overpaying their PRSI. The Department of Social Protection said taxpayers were already being paid some €10m back with an average refund of €400 each. According to the department, the overcharging was because of a discrepancy in the health levy part of social insurance from 2010.
Thousands Of PRSI Workers To Be Refunded
Tens of thousands of workers will receive a refund after overpaying their PRSI. The Department of Social Protection said taxpayers were already being paid some €10m back with an average refund of €400 each. According to the department, the overcharging was because of a discrepancy in the health levy part of social insurance from 2010.
22 October 2008
Details Revealed Of Income Levy U-Turn
Following the almost universal outcry over the introduction of a 1% tax levy on all workers, the Government has announced its revised proposals. Now people earning up to the minimum wage of €17,540 per year will be exempt from the levy announced in the Budget, although anyone earning above this level will still be charged at the new tax rate.
Details Revealed Of Income Levy U-Turn
Following the almost universal outcry over the introduction of a 1% tax levy on all workers, the Government has announced its revised proposals. Now people earning up to the minimum wage of €17,540 per year will be exempt from the levy announced in the Budget, although anyone earning above this level will still be charged at the new tax rate.
09 March 2009
April Budget Could See Tax Levy Hike
Brian Lenihan is considering immediate increases in the controversial income levy as part of next month's emergency budget. Following the discovery of a €2billion shortfall in the Government's balance for the year, a raft of measures are expected to be introduced to fill in the financial hole.
April Budget Could See Tax Levy Hike
Brian Lenihan is considering immediate increases in the controversial income levy as part of next month's emergency budget. Following the discovery of a €2billion shortfall in the Government's balance for the year, a raft of measures are expected to be introduced to fill in the financial hole.
17 October 2008
Unions To Urge Taoiseach To Scrap Tax Levy
Union leaders are to meet the Taoiseach in a bid to have the 1% tax levy scraped for all workers. The levy will see tens of thousands of people pay tax for the first time. Unions say this will impact badly on low paid workers who will see a drastic decrease in their income.
Unions To Urge Taoiseach To Scrap Tax Levy
Union leaders are to meet the Taoiseach in a bid to have the 1% tax levy scraped for all workers. The levy will see tens of thousands of people pay tax for the first time. Unions say this will impact badly on low paid workers who will see a drastic decrease in their income.
-
Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
