AITI Part 3 Assignment

Atrema130

To be honest my word count was getting quite large and it was more out of laziness and confusion I hate to admit than anything that I didn't include re finance lease.

But maybe now that I know they cant get accelerated allowances, I will put para in re finance lease. Thnks!

So you referenced how they could make a joint election to claim capital allowances if it was finance lease?

crebel81

Atrema130 wrote: »

To be honest my word count was getting quite large and it was more out of laziness and confusion I hate to admit than anything that I didn't include re finance lease.

But maybe now that I know they cant get accelerated allowances, I will put para in re finance lease. Thnks!

So you referenced how they could make a joint election to claim capital allowances if it was finance lease?

Yeah section 299 is the relevant section

crebel81

Atrema130 wrote: »

Yes very confusing. So lets say the shares are worth 2.5% of 20million, so 500k each (not looking at minority etc). And they are getting the reduction to the amount chargeable to income tax under Sch E of 50% because they are restricted. So they are liable to income tax on €250k.

is this not an emolument??

I am assuming the employees are not paying anything, so the shares are awarded at zero cost to the employees for the moment. So the notional loan would technically be for 500k, and will be reduced accordingly as the employees pay back the company.

However that is the problem, S122A says that the initial amount of the notional loan is the amount of the undervalue which is not chargeable to tax as an emolument. They aren't paying anything for the shares so the undervalue would be 500k. However, 250k is being charged as an emolument is it not??

I'm a bit confused on this also. So the amount of the abatement is 50% so 250k is subject to tax. Assuming a marginal rate of 50% the employee will pay tax of 112.5k.

What is section 122A being charged on?

crebel81

crebel81 wrote: »

I'm a bit confused on this also. So the amount of the abatement is 50% so 250k is subject to tax. Assuming a marginal rate of 50% the employee will pay tax of 112.5k.

What is section 122A being charged on?

Is it the other 250k?

Atrema130

I honestly don't know! But I suppose all we can really do is go with the legislation. The legislation definitely says that the initial amount of the notional loan is the amount of the undervalue which is not chargeable to tax as an emolument.

The emolument is 250k. So I suppose the loan would be for 250k?

That is all we can do isn't it?

crebel81

Atrema130 wrote: »

I honestly don't know! But I suppose all we can really do is go with the legislation. The legislation definitely says that the initial amount of the notional loan is the amount of the undervalue which is not chargeable to tax as an emolument.

The emolument is 250k. So I suppose the loan would be for 250k?

That is all we can do isn't it?

Agreed. Information isn't very clear in any of the material I have read

Atrema130

Just wondering re the VAT part. Why do people think that it is 'No loss of Revenue'? Do we know that the goods are zero rated in Ireland, is that why?

Sorry If I am missing something ha!

Thank you!

crebel81

Atrema130 wrote: »

Just wondering re the VAT part. Why do people think that it is 'No loss of Revenue'? Do we know that the goods are zero rated in Ireland, is that why?

Sorry If I am missing something ha!

Thank you!

Intra community acquisition so reverse charge basis applies.

taxstudent101

Just wanted to get a feeling on results for both assignment and interim. I passed both, just about which doesn't fill me with great confidence - 54% in prof advice and 52% in interim exam. How did everyone else do?

louise1985

Hi,

If anyone on here is doing the part 3 assignment could you send me a DM please?
Thanks