Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie
Hi there,
There is an issue with role permissions that is being worked on at the moment.
If you are having trouble with access or permissions on regional forums please post here to get access: https://www.boards.ie/discussion/2058365403/you-do-not-have-permission-for-that#latest

Compensation received

  • 15-01-2007 8:58pm
    #1
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭


    Taxable or not? I can't find anything on it :rolleyes:


Comments

  • #2
    karangka
    Registered Users, Registered Users 2 Posts: 57 ✭✭karangka


    Hi,

    Was it by court order? I've came across a case when a compensation received (from employer) by court order is not taxable. Don't quote this on me though. I'll post here if I can find a backup to this.


  • #3
    smcgiff
    Closed Accounts Posts: 5,943 ✭✭✭smcgiff


    I think you're right, karangka,

    On the basis that compensation is (theoretically) a restitution of loss, and therefore no gain is received. But get definitive back up first.


  • #4
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    Yeah that's the situation I was thinking of karangka, from an employer for loss. It would be issued by a court. Wish it was me getting it though :rolleyes:


  • #5
    karangka
    Registered Users, Registered Users 2 Posts: 57 ✭✭karangka


    Have a look at this (extracted from Taxes Consolidation Act 1997, Part 7):

    2. Awards made by the Employment Appeals Tribunal - what is the tax
    treatment of awards made?
    In general, awards made by the Employment Appeals Tribunal will have tax
    implications because the payments will normally be connected with the
    employment. It will depend on what the award covers as to the amount
    taxable. If it covers, say, a reimbursement of arrears of pay, holiday pay or sick
    pay it is taxable in full in the normal way. If it covers, say, a payment for
    breach of contract of service or compensation for loss of employment under
    the Unfair Dismissals Act 1977 to 1993 the £8,000 (plus £600 for each
    complete year of service) exemption (and the additional exemption and reliefs,
    where they apply) provided for in section 201 and schedule 3 TCA 1997 will
    generally apply.



    You could have a look at this if the compensation payment was a personal injury payment. http://www.revenue.ie/leaflets/it13.pdf.


  • #6
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    Had a further look into this. If anyone has the Income Tax 2006 book by the Irish Taxation Institute, then take a look at page 70 and the paragraph under the last bullet point. If it's a legitimate loss and it is similar to what would've been rewarded by a relevant authority then it's tax free if settled out of court.


  • Advertisement
Advertisement