Irish Taxation: Law and Practice

Assignments, Questions & Solutions16th edition Volume 2

Edited by Laurence May

Authors: Caitriona Gaynor Raymond Holly Pat Kennedy Paul Murphy Martina Whyte

2018/2019

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CONTENTS CHARTS

Income TaxChart 1 – Credits ...........................................................................25Chart 2 – Rates ..............................................................................26Chart 3 – Exemption Limits .............................................................27Chart 4 – PRSI Rates .......................................................................28Chart 5 – Income Levy ...................................................................29Chart 6 – Universal Social Charge ..................................................30Chart 7 – Mortgage Interest Relief ..................................................31Chart 8 – Specified Amounts for the Restrictions of Capital Allowances

and Leasing Charges for Passenger Motor Vehicles ..........34Chart 9 – Civil Service Motor Travel Rates .......................................35Chart 10 – Civil Service Subsistence Rates ........................................37Chart 11 – Interest on Overdue/Overpaid Tax ..................................39Chart 12 – Average Rates of Exchange .............................................40Chart 13 – Specified Amounts (Preliminary Tax) ................................41Chart 14 – Preferential Loans (Specified Interest Rates) .....................41Chart 15 – Retention Tax on Payments for Professional Services ........42Chart 16 – Tax and Interest as Preferential Debt ...............................46Chart 17 – Time Limits .....................................................................47

Corporation TaxChart 18 – Rates – General ..............................................................48Chart 19 – Rates – Property Dealing & Development .........................49Chart 20 – Preliminary Tax ...............................................................50Chart 21 – Payment Dates and Form CT1 Filing Dates ......................51Chart 22 – Manufacturing Relief and Investment in Corporate Trades ...52Chart 23 – Time Limits .....................................................................53

Capital Gains TaxChart 24 – Indexation Factors for Capital Gains Tax ..........................54Chart 25 – Rates ..............................................................................55

Capital Acquisitions TaxChart 26 – Rates ..............................................................................56Chart 27 – Capital Acquisitions Tax Class Thresholds ........................57

Fantasy Budget 2019

What is youranalysis of

Budget 2019? Do you think these initiatives promote

growth, whilst raising the necessary tax

revenue?

What Budget measures would youintroduce?

• Form teams of three or four students

• Liaise with your college lecturer and submit your entry through him/her

• Submissions to be sent to fantasybudget@taxinstitute.ie

• Closing date for entries

16 November 2018

The Irish Tax Institute is running itshigh profi le annual tax competitionfor undergraduate studentsthroughout Ireland.

Submissions will be judged by a panel of leading economists and business commentators. Visit www.taxinstitute.ie for more information.

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Stamp DutiesChart 28 – Rates ..............................................................................59

Value-Added TaxChart 29 – Fourth Schedule Services (Repealed with effect

from 1 January 2010) .................................................... 60Chart 30 – Exempted Activities .........................................................61Chart 31 – Zero Rate ........................................................................62Chart 32 – Services provided to non-business customers outside

the EU - not chargeable to Irish VAT ................................62Chart 33 – VAT 9% Rate ...................................................................63Chart 34 – VAT 13.5% Rate ..............................................................63Chart 35 – VAT 23% Rate .................................................................64Chart 36 – Thresholds ......................................................................64Chart 37 – Multiplier ........................................................................65

Capital AllowancesChart 38 – Capital Allowances .........................................................66

Property Incentive SchemesChart 39 – Urban Renewal Area Allowances - 1986 Scheme .............67Chart 40 – Designated Area/Street from 1/8/1994 ...........................68Chart 41 – 1998 Urban & Rural Renewal Schemes ............................69Chart 42 – 2000 Town Renewal Scheme ..........................................70Chart 43 – Summary of Terminating Property Investment

Schemes and Incentives ..................................................71Chart 44 – Tax Geared Penalties ......................................................73Chart 45 – Social Welfare Pensions and Allowances .........................75

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1 ASSIGNMENTS

Chapter 1: Irish Taxation – Principles and Policy ..............................77Chapter 2: Introduction to the European Dimension ........................77Chapter 3: The General Principles ..................................................79Chapter 4: Cross-Border Trade .......................................................81Chapter 5: Accounting for VAT: Invoicing, Deductions and Special Procedures/Categories ......................................82Chapter 6: Property Transactions and Building Services ...................83Chapter 7: Rights and Obligations of Accountable Persons and the Role of Revenue ...............................................84Chapter 8: Overview of the Irish Income Tax System .......................85Chapter 9: The Scope of Income Tax ...............................................86Chapter 10: The Self-Assessment System ..........................................86Chapter 11: Tax Credits, Allowances and Reliefs ...............................87Chapter 12: Relief for Charges and Interest ......................................87Chapter 13: Taxation of Married Couples .........................................87Chapter 14: Income from Trades and Professions .............................88Chapter 15: Adjusted Income Tax Computation ................................89Chapter 16: Capital Allowances .......................................................89Chapter 17: Losses ..........................................................................90Chapter 18: Taxation of Partnerships ................................................90Chapter 19: Taxation of Interest, Dividends and Rental Income .........90Chapter 20: Taxation of Income from Office and Employment ..........91Chapter 21: Benefits in Kind.............................................................92Chapter 22: Termination Payments ..................................................92Chapter 23: Operation of PAYE/PRSI System ....................................92Chapter 24: Basic Principles of Capital Gains Tax .............................93Chapter 25: Computation of Gain or Loss ........................................93Chapter 26: Advanced Computational Issues ....................................94Chapter 27: CGT Reliefs...................................................................95Chapter 28: General Principles of Irish Corporation Tax ....................97Chapter 29: Calculating the Corporation Tax Liability .......................99Chapter 30: Losses ........................................................................100Chapter 31: Groups: Payments, Losses and Transfers of Assets .......101Chapter 32: Close Companies .......................................................102Chapter 33: Basic Principles of Capital Acquisitions Tax ..................103

2 VALUE-ADDED TAX QUESTIONS

Chapter 3: The General Principles ................................................107 Question 3.1: VAT payable – Trader ............................107 Question 3.2: VAT Rates .............................................107

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Chapter 4: Cross-Border Trade .....................................................108 Question 4.1: VAT liability & Saving – Internet

Trader ....................................................................... 108Chapter 5: Accounting for VAT: Invoicing, Deductions and Special Procedures/Categories ....................................109 Question 5.1: Publican ...............................................109 Question 5.2: General Retailer ...................................109Chapter 6: Property Transactions and Building Services .................111 Question 6.1: Property Investor ...................................111 Question 6.2: Building Services ...................................111

3 INCOME TAX QUESTIONS

Chapter 9: The Scope of Income Tax .............................................113 Question 9.1: Shane Dawson......................................113 Question 9.2: Sean Higgins ........................................113 Question 9.3: Mary Rose .............................................114 Question 9.4: Paul Ryan .............................................114Chapter 10: The Self-Assessment System ........................................115 Question 10.1: Michael George ..................................115 Question 10.2: Patrick Last .........................................115 Question 10.3: Declan Earley .....................................115Chapter 11: Tax Credits, Allowances and Reliefs .............................116 Question 11.1: John and Mary ....................................116 Question 11.2: Mary ...................................................116 Question 11.3: Husband and Wife ..............................117 Question 11.4: Gerry O’Brien .....................................117Chapter 12: Relief for Charges and Interest ....................................118 Question 12.1: Ali Martin ...........................................118 Question 12.2: Martin McClean ..................................118 Question 12.3: Pierre Chirac .......................................119Chapter 13: Taxation of Married Couples .......................................120 Question 13.1: Jack and Ann Grace ............................120 Question 13.2: Ken and Wendy Thompson .................120 Question 13.3: Mark and Mary Dunne ........................121 Question 13.4: Anthony & Caroline O’Brien ................121 Question 13.5: Jim & Paula Roberts ............................123Chapter 14: Income from Trades and Professions ...........................124 Question 14.1: Mr. Brady ............................................124 Question 14.2: John McFadden ..................................124 Question 14.3: Peter O’Reilly ......................................125 Question 14.4: Maud..................................................125 Question 14.5: Joe O’Leary ........................................126

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Chapter 15: Adjusted Income Tax Computation ..............................127 Question 15.1: Frank Gibbons ....................................127 Question 15.2: Emily Waters .......................................129 Question 15.3: Victoria Roberts ...................................132 Question 15.4: Valerie Smyth .....................................134Chapter 16: Capital Allowances .....................................................136 Question 16.1: Mr. Black ............................................136 Question 16.2: Elaine .................................................136 Question 16.3: John Leamy ........................................137 Question 16.4: John O’Neill .......................................137 Question 16.5: Mr. A ..................................................138 Question 16.6: Mr. Moran ..........................................139 Question 16.7: Phelim Molloy .....................................139Chapter 17: Losses ........................................................................141 Question 17.1: Ms O’Connell .....................................141 Question 17.2: Mary Doyle .........................................141 Question 17.3: Derek Coffey ......................................142 Question 17.4: Jane Richie .........................................142 Question 17.5: Liam Black ..........................................142Chapter 18: Taxation of Partnerships ..............................................143 Question 18.1: John and Bernard ...............................143 Question 18.2: Siobhan and Aisling ............................143 Question 18.3: Joan and Maura .................................144 Question 18.4: Donna, Aisling and John .....................144 Question 18.5: Mary and Martha ................................145 Question 18.6: Peter, Paul and Andrew .......................145 Question 18.7: James and Dean .................................146Chapter 19: Taxation of Interest, Dividends and Rental Income .......147 Question 19.1: Jean Walsh .........................................147 Question 19.2: Siobhan Potter ....................................148 Question 19.3: Marjorie Williams ................................149 Question 19.4: Lucy Curley .........................................150 Question 19.5: Margaret Larkin ..................................151Chapter 20: Taxation of Income from Office and Employment ........152 Question 20.1: Jane ...................................................152Chapter 21: Benefits In Kind ..........................................................153 Question 21.1: Gavin and Patricia Noonan .................153 Question 21.2: Sales Limited ......................................155 Question 21.3: George Jones .....................................155 Question 21.4: Alex Jenson ........................................156 Question 21.5: Shane Bradley ....................................157Chapter 22: Termination Payments ................................................158 Question 22.1: Jane Peters .........................................158

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Question 22.2: Leo and Louise Leonard ......................159 Question 22.3: John Smith .........................................160Chapter 23: Operation of PAYE/PRSI System ..................................162 Question 23.1: David McGann ....................................162

4 CAPITAL GAINS TAX QUESTIONS

Chapter 25: Computation of Gain or Loss ......................................163 Question 25.1: June Molloy ........................................163 Question 25.2: Joseph Sweetman ...............................163 Question 25.3: Peter and Mary Jones ..........................164 Question 25.4: Noel Clarke ........................................165 Question 25.5: Jack White ..........................................165 Question 25.6: John Murphy .......................................166 Question 25.7: Michael Barry......................................166 Question 25.8: Shane and Eileen Finn ........................167 Question 25.9: Simon and Ella Finlay ..........................167Chapter 26: Advanced Computational Issues ..................................168 Question 26.1: Mr White ............................................168 Question 26.2: Mary Breen .........................................169 Question 26.3: Mr Black .............................................169 Question 26.4: June Norton .......................................169 Question 26.5: Ken and Kathleen ...............................170 Question 26.6: John ...................................................172 Question 26.7: Ken ....................................................172 Question 26.8: Amy....................................................173Chapter 27: CGT Reliefs.................................................................173 Question 27.1: Henry .................................................173 Question 27.2: Mary Molloy ........................................174 Question 27.3: Simon Flynn ........................................174 Question 27.4: Rollover Relief – Sean Adams ..............175 Question 27.5: Terry Plant ..........................................176 Question 27.6: Niall Joy .............................................177 Question 27.7: Michael and Nora ...............................177 Question 27.8: Johns Limited ......................................178 Question 27.9: Michael and Anne Martin ....................179

5 CORPORATION TAX QUESTIONS

Chapter 28: General Principles of Irish Corporation Tax ..................181 Question 28.1: The Universe Group ............................181Chapter 29: Calculating the Corporation Tax Liability .....................182 Question 29.1: XY Limited ..........................................182

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Question 29.2: Gamble Enterprises Limited .................184 Question 29.3: Retail Limited ......................................186 Question 29.4: Tardy Accounts Limited .......................188 Question 29.5: Drive Limited ......................................188 Question 29.6: Rogan Limited .....................................191Chapter 30: Losses ........................................................................192 Question 30.1: Frank Limited ......................................192 Question 30.2: Hard Times Limited .............................192 Question 30.3: A Company Limited ............................193 Question 30.4: Alpha Limited .....................................193Chapter 31: Groups: Payments, Losses and Transfers of Assets .......194 Question 31.1: Wise Limited .......................................194 Question 31.2: P Limited ............................................194 Question 31.3: D Limited ............................................195 Question 31.4: The Holdco Group ..............................196 Question 31.5: Capital Problems ................................197 Question 31.6: Run, Walk and Skip Limited .................197 Question 31.7: Brighton & Hove Limited .....................198 Question 31.8: Chairs Limited ....................................198Chapter 32: Close Companies .......................................................199 Question 32.1: Simms Limited ....................................199 Question 32.2: Green Food Limited ............................201 Question 32.3: Close Company ..................................202 Question 32.4: Carrican Limited .................................203 Question 32.5: B Limited ............................................204 Question 32.6: Reek Limited .......................................205

6 CAPITAL ACQUISITIONS TAX QUESTIONS

Chapter 33: Basic Principles of Capital Acquisitions Tax ..................207 Question 33.1: Terminology .......................................207 Question 33.2: Territorial Scope .................................208 Question 33.3: Method of Computation ......................208 Question 33.4: Valuation of Limited Interest ................209 Question 33.5: Valuation of Limited Interest ................209 Question 33.6: Joseph Murphy ...................................210 Question 33.7: Agricultural Relief ...............................210 Question 33.8: Business Relief ....................................211

7 ASSIGNMENT SOLUTIONS

Chapter 1: Irish Taxation – Principles and Policy ............................215 Assignment Solutions 1.1 – 1.5 ...................................215

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Chapter 2: Introduction to the European Dimension ......................216 Assignment Solution 2.1 .............................................216 Assignment Solution 2.2 .............................................217 Assignment Solution 2.3 .............................................219 Assignment Solution 2.4 .............................................219 Assignment Solution 2.5 .............................................219 Assignment Solution 2.6 .............................................220Chapter 3: The General Principles ................................................221 Assignment Solution 3.1 .............................................221 Assignment Solution 3.2 .............................................221 Assignment Solution 3.3 ............................................221 Assignment Solution 3.4 .............................................221Chapter 4: Cross-Border Trade .....................................................222 Assignment Solution 4.1 ............................................222 Assignment Solution 4.2 .............................................223 Assignment Solution 4.3 .............................................223 Assignment Solution 4.4 ............................................223 Assignment Solution 4.5 .............................................223 Assignment Solution 4.6 .............................................223 Assignment Solution 4.7 ............................................224 Assignment Solution 4.8 ............................................224Chapter 5: Accounting for VAT: Invoicing, Deductions and Special Procedures/Categories ....................................225 Assignment Solution 5.1 .............................................225 Assignment Solution 5.2 ............................................225 Assignment Solution 5.3 .............................................226 Assignment Solution 5.4 .............................................226 Assignment Solution 5.5 .............................................226Chapter 6: Property Transactions and Building Services .................229 Assignment Solution 6.1 .............................................229 Assignment Solution 6.2 .............................................230 Assignment Solution 6.3 .............................................230 Assignment Solution 6.4 .............................................231 Assignment Solution 6.5 .............................................232Chapter 7: Rights and Obligations of Accountable Persons and the Role of Revenue .............................................233 Assignment Solution 7.1 ............................................233 Assignment Solution 7.2 ............................................235 Assignment Solution 7.3 .............................................236 Assignment Solution 7.4 ............................................236 Assignment Solution 7.5 ............................................236Chapter 8: Overview of the Irish Income Tax System .....................237 Assignment Solution 8.1 .............................................237

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Assignment Solution 8.2 .............................................237Chapter 9: The Scope of Income Tax .............................................238 Assignment Solution 9.1 .............................................238 Assignment Solution 9.2: ABC Inc. ..............................238Chapter 10: The Self-Assessment System ........................................241 Assignment Solution 10.1 ...........................................241 Assignment Solution 10.2 ...........................................241 Assignment Solution 10.3 ...........................................241Chapter 11: Tax Credits, Allowances and Reliefs .............................242 Assignment Solution 11.1 ..........................................242 Assignment Solution 11.2 ...........................................242Chapter 12: Relief for Charges and Interest ....................................243 Assignment Solution 12.1 ..........................................243Chapter 13: Taxation of Married Couples .......................................244 Assignment Solution 13.1 ..........................................244Chapter 14: Income from Trades and Professions ...........................245 Assignment Solution 14.1 ..........................................245 Assignment Solution 14.2 ...........................................245 Assignment Solution 14.3 ...........................................245Chapter 15: Adjusted Income Tax Computation ..............................246 Assignment Solution 15.1 ..........................................246 Assignment Solution 15.2 ..........................................246Chapter 16: Capital Allowances .....................................................247 Assignment Solution 16.1 ...........................................247 Assignment Solution 16.2 ...........................................247Chapter 17: Losses ........................................................................248 Assignment Solution 17.1 ...........................................248 Assignment Solution 17.2 ..........................................248Chapter 18: Taxation of Partnerships ..............................................249 Assignment Solution 18.1 ...........................................249 Assignment Solution 18.2 ..........................................249Chapter 19: Taxation of Interest, Dividends and Rental Income .......250 Assignment Solution 19.1 ..........................................250 Assignment Solution 19.2 ...........................................250Chapter 20: Taxation of Income from Office and Employment ........252 Assignment Solution 20.1 ...........................................252 Assignment Solution 20.2 ...........................................252 Assignment Solution 20.3 ...........................................252Chapter 21: Benefits in Kind...........................................................253 Assignment Solution 21.1 ...........................................253Chapter 22: Termination Payments ................................................254 Assignment Solution 22.1 ...........................................254Chapter 23: Operation of PAYE/PRSI System ..................................255

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Assignment Solution 23.1 ...........................................255Chapter 24: Basic Principles of Capital Gains Tax ...........................256 Assignment Solution 24.1: Frank .................................256 Assignment Solution 24.2 ...........................................256Chapter 25: Computation of Gain or Loss ......................................257 Assignment Solution 25.1 ...........................................257 Assignment Solution 25.2 ...........................................257 Assignment Solution 25.3 ...........................................257Chapter 26: Advanced Computational Issues ..................................258 Assignment Solution 26.1: Jane Bryant ........................258 Assignment Solution 26.2: Esther Long ........................258Chapter 27: CGT Reliefs.................................................................259 Assignment Solution 27.1 ...........................................259 Assignment Solution 27.2 ...........................................259 Assignment Solution 27.3: Denise ...............................259 Assignment Solution 27.4 ..........................................261Chapter 28: General Principles of Irish Corporation Tax ..................262 Assignment Solution 28.1: Various Incomes Ltd ...........262 Assignment Solution 28.2 ...........................................263 Assignment Solution 28.3 ...........................................263 Assignment Solution 28.4 ...........................................264 Assignment Solution 28.5 ...........................................265Chapter 29: Calculating the Corporation Tax Liability .....................266 Assignment Solution 29.1 ...........................................266 Assignment Solution 29.2 ...........................................266 Assignment Solution 29.3 ...........................................267Chapter 30: Losses ........................................................................268 Assignment Solution 30.1 ..........................................268 Assignment Solution 30.2 ...........................................268Chapter 31: Groups: Payments, Losses and Transfers of Assets .......269 Assignment Solution 31.1: The H Group ......................269 Assignment Solution 31.2: Loss/Consortium Groups ....270Chapter 32: Close Companies .......................................................271 Assignment Solution 32.1 ..........................................271 Assignment Solution 32.2 ..........................................271Chapter 33: Basic Principles of Capital Acquisitions Tax ..................273 Assignment Solution 33.1 ..........................................273 Assignment Solution 33.2 ..........................................273

8 VALUE-ADDED TAX SOLUTIONS

Chapter 3: The General Principles ................................................277 Solution 3.1: VAT payable – Trader .............................277

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Solution 3.2: VAT Rates ...............................................277Chapter 4: Cross-Border Trade .....................................................278 Solution 4.1: VAT liability & Saving – Internet Trader ...278Chapter 5: Accounting for VAT: Invoicing, Deductions and Special Procedures/Categories ....................................279 Solution 5.1: Publican .................................................279 Solution 5.2: General Retailer .....................................280Chapter 6: Property Transactions and Building Services .................281 Solution 6.1: Property Investor ....................................281 Solution 6.2: Building Services ....................................281

9 INCOME TAX SOLUTIONS

Chapter 9: The Scope of Income Tax .............................................283 Solution 9.1: Shane Dawson .......................................283 Solution 9.2: Sean Higgins ..........................................283 Solution 9.3: Mary Rose ..............................................284 Solution 9.4: Paul Ryan ...............................................284Chapter 10: The Self-Assessment System ........................................285 Solution 10.1: Michael George ...................................285 Solution 10.2: Patrick Last ..........................................285 Solution 10.3: Declan Earley .......................................286Chapter 11: Tax Credits, Allowances and Reliefs .............................287 Solution 11.1: John and Mary .....................................287 Solution 11.2: Mary ....................................................290 Solution 11.3: Husband and Wife ...............................292 Solution 11.4: Gerry O’Brien.......................................292Chapter 12: Relief for Charges and Interest ....................................293 Solution 12.1: Ali Martin .............................................293 Solution 12.2: Martin McClean....................................294 Solution 12.3: Pierre Chirac ........................................294Chapter 13: Taxation of Married Couples .......................................297 Solution 13.1: Jack and Ann Grace .............................297 Solution 13.2: Ken & Wendy Thompson ......................299 Solution 13.3: Mark and Mary Dunne .........................300 Solution 13.4: Anthony and Caroline O’Brien ..............301 Solution 13.5: Jim and Paula Roberts ..........................305Chapter 14: Income from Trades and Professions ...........................308 Solution 14.1: Mr. Brady .............................................308 Solution 14.2: John McFadden ....................................309 Solution 14.3: Peter O’Reilly .......................................311 Solution 14.4: Maud ...................................................312 Solution 14.5: Joe O’Leary ..........................................313

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Chapter 15: Adjusted Income Tax Computation ..............................314 Solution 15.1: Frank Gibbons .....................................314 Solution 15.2: Emily Waters ........................................315 Solution 15.3: Victoria Roberts ....................................317 Solution 15.4: Valerie Smyth .......................................318Chapter 16: Capital Allowances .....................................................319 Solution 16.1: Mr. Black ..............................................319 Solution 16.2: Elaine ..................................................320 Solution 16.3: John Leamy ..........................................321 Solution 16.4: John O’Neill.........................................322 Solution 16.5: Mr. A ...................................................324 Solution 16.6: Mr. Moran ............................................326 Solution 16.7: Phelim Molloy ......................................327Chapter 17: Losses ........................................................................329 Solution 17.1: Ms O’Connell .......................................329 Solution 17.2: Mary Doyle ..........................................330 Solution 17.3: Derek Coffey ........................................332 Solution 17.4: Jane Richie ...........................................333 Solution 17.5: Liam Black ...........................................334Chapter 18: Taxation of Partnerships ..............................................335 Solution 18.1: John and Bernard .................................335 Solution 18.2: Siobhan and Aisling .............................335 Solution 18.3: Joan and Maura ...................................336 Solution 18.4: Donna, Aisling and John ......................338 Solution 18.5: Mary and Martha .................................339 Solution 18.6: Peter, Paul and Andrew ........................340 Solution 18.7: James and Dean ..................................341Chapter 19: Taxation of Interest, Dividends and Rental Income .......343 Solution 19.1: Jean Walsh ..........................................343 Solution 19.2: Siobhan Potter .....................................345 Solution 19.3: Marjorie Williams .................................348 Solution 19.4: Lucy Curley ..........................................350 Solution 19.5: Margaret Larkin....................................352Chapter 20: Taxation of Income from Office and Employment ........353 Solution 20.1: Jane .....................................................353Chapter 21: Benefits in Kind...........................................................353 Solution 21.1: Gavin and Patricia Noonan ..................353 Solution 21.2: Sales Limited ........................................356 Solution 21.3: George Jones .......................................357 Solution 21.4: Alex Jenson ..........................................359 Solution 21.5: Shane Bradley ......................................361Chapter 22: Termination Payments ................................................363 Solution 22.1: Jane Peters ...........................................363

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Solution 22.2: Leo and Louise Leonard ........................364 Solution 22.3: John Smith ..........................................367Chapter 23: Operation of PAYE/PRSI System ..................................368 Solution 23.1: David McGann .....................................368

10 CAPITAL GAINS TAX SOLUTIONS

Chapter 25: Computation of Gain or Loss ......................................371 Solution 25.1: June Molloy ..........................................371 Solution 25.2: Joseph Sweetman.................................372 Solution 25.3: Peter and Mary Jones ...........................373 Solution 25.4: Noel Clarke .........................................374 Solution 25.5: Jack White ...........................................375 Solution 25.6: John Murphy ........................................377 Solution 25.7: Michael Barry .......................................378 Solution 25.8: Shane and Eileen Finn ..........................379 Solution 25.9: Simon and Ella Finlay ...........................381Chapter 26: Advanced Computational Issues ..................................383 Solution 26.1: Mr White ..............................................383 Solution 26.2: Mary Breen ..........................................385 Solution 26.3: Mr Black ...............................................386 Solution 26.4: June Norton .........................................388 Solution 26.5: Ken and Kathleen .................................389 Solution 26.6: John.....................................................394 Solution 26.7: Ken ......................................................396 Solution 26.8: Amy .....................................................397Chapter 27: CGT Reliefs.................................................................399 Solution 27.1: Henry ...................................................399 Solution 27.2: Mary Molloy .........................................400 Solution 27.3: Simon Flynn .........................................401 Solution 27.4: Rollover Relief - Sean Adams ................402 Solution 27.5: Terry Plant ............................................403 Solution 27.6: Niall Joy ...............................................405 Solution 27.7: Michael and Nora ................................407 Solution 27.8: Johns Limited .......................................408 Solution 27.9: Michael and Anne Martin .....................410

11 CORPORATION TAX SOLUTIONS

Chapter 28: General Principles of Irish Corporation Tax ..................413 Solution 28.1: The Universe Group .............................413Chapter 29: Calculating the Corporation Tax Liability .....................414

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Solution 29.1: XY Limited ............................................414 Solution 29.2: Gamble Enterprises Limited ..................417 Solution 29.3: Retail Limited .......................................419 Solution 29.4: Tardy Accounts Limited .........................421 Solution 29.5: Drive Limited ........................................423 Solution 29.6: Rogan Limited ......................................426Chapter 30: Losses ........................................................................428 Solution 30.1: Frank Limited .......................................428 Solution 30.2: Hard Times Limited ..............................430 Solution 30.3: A Company Limited ..............................431 Solution 30.4: Alpha Limited .......................................432Chapter 31: Groups: Payments, Losses and Transfers of Assets .......435 Solution 31.1: Wise Limited ........................................435 Solution 31.2: P Limited ..............................................436 Solution 31.3: D Limited .............................................438 Solution 31.4: The Holdco Group ................................441 Solution 31.5: Capital Problems ..................................443 Solution 31.6: Run, Walk and Skip Limited ..................444 Solution 31.7: Brighton and Hove Limited ...................446 Solution 31.8: Chairs Limited ......................................448Chapter 32: Close Companies .......................................................449 Solution 32.1: Simms Limited ......................................449 Solution 32.2: Green Food Limited ..............................451 Solution 32.3: Close Company ....................................453 Solution 32.4: Carrican Limited ...................................454 Solution 32.5: B Limited ..............................................456 Solution 32.6: Reek Limited ........................................457

12 CAPITAL ACQUISITIONS TAX SOLUTIONS

Chapter 33: Basic Principles of Capital Acquisitions Tax ..................459 Solution 33.1: Terminology .........................................459 Solution 33.2: Territorial Scope ...................................461 Solution 33.3: Method of Computation .......................462 Solution 33.4: Valuation of Limited Interest .................463 Solution 33.5: Valuation of Limited Interest .................464 Solution 33.6: Joseph Murphy .....................................465 Solution 33.7: Agricultural Relief .................................467 Solution 33.8: Business Relief ......................................468

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13 REVISION QUESTIONS

Value-Added Tax ...........................................................................471 Revision Question VAT.1: ............................................471 Revision Question VAT.2: ............................................472Income Tax ..................................................................................473 Revision Question IT.1: Tom Clark ...............................473 Revision Question IT.2: Fergus Clinton ........................475 Revision Question IT.3: Sandrine Leblanc ....................478 Revision Question IT.4: Shane Smyth...........................483 Revision Question IT.5: Tom Volks ...............................485 Revision Question IT.6: Mary Barry ..............................489 Revision Question IT.7: Fran Richardson ......................490 Revision Question IT.8: George and Marian ................491 Revision Question IT.9: Hannah and Louis...................492 Revision Question IT.10: Dermot and Monica ..............493 Revision Question IT.11: Jim and Paula Roberts ...........494 Revision Question IT.12: Barnaby Breen ......................495 Revision Question IT.13: John, Paul and George .........496Capital Gains Tax ..........................................................................497 Revision Question CGT.1: Alice Peters .........................497 Revision Question CGT.2: Patricia ...............................498 Revision Question CGT.3: Dick and Sally .....................499 Revision Question CGT.4: Joe and Anita .....................500 Revision Question CGT.5: Sarah .................................500 Revision Question CGT.6: James .................................501Corporation Tax .............................................................................502 Revision Question CT.1: Industrial Limited ...................502 Revision Question CT.2: Smith & O’Shea Limited .........504 Revision Question CT.3: Star Trading Limited ..............506 Revision Question CT.4: Berlin Limited ........................508 Revision Question CT.5: Gold Limited .........................511 Revision Question CT.6: Brookwood Limited ................512 Revision Question CT.7: XY Limited .............................513 Revision Question CT.8: Start-Up Ltd ...........................514 Revision Question CT.9: Silver Limited .........................515 Revision Question CT.10: Asgard Ltd ...........................516 Revision Question CT.11: Holiday Limited ...................517Capital Acquisitions Tax .................................................................518 Revision Question CAT.1: Territoriality, Group Threshold, Aggregation, Limited Interest ...........518 Revision Question CAT.2: Agricultural Relief ................519 Revision Question CAT.3: Business Property Relief .......520