Why - surely the advantage is that it can’t be captured by a levy on domestic bank deposits?
Edit: Sorry Terra Incognita - didn’t see your post
Noonan just stated on Radio1 that traditionally the Dirt rate was lower than the marginal rate of income tax to encourage saving. Now, the Dirt increase is because the savings ratio is too high and he wants to ensure people spend the squirreled savings in the local economy
He also confirmed PRSI on interest from Jan - so you will pay DIRT 41% + PRSI %4 on interest - definitely time to start looking abroad for my meagre funds.
That might be sensible if I wasn’t being squeezed on cost of accommodation
Lower the cost of that and I can spend extra in the economy
So how will this PRSI payment work for the average PAYE worker who just has their tax taken from payslip.
Will you be required to make an annual return for your deposit interest/divident income?
I expect they’ll deduct it at source and you’ll have to apply for any adjustment.
It would make sense alright for banks to deduct PRSI at source, as they do with DIRT. But this is Ireland…
Would still have a tax liability allright but if you get the same sort of interest rate as currently available domestically at least your capital is safe from the governments grubby hands.
Joan Burton just said on Pat Kenny that she is unsure if PRSI will be applied to deposit interest and it will be clarified by Minister of Finance in the Finance Billl. Noonan was asked the same question on Sean O’Rourke and he wasn’t sure and said it was a department of social protection measure. Clear as mud.
What makes you think that?
All they have to do is say that “All Irish residents must pay a one off 1% levy on all cash deposits they hold”. Doesn’t matter if it’s in an Irish bank or abroad. If it’s in an Irish bank sure they just take it, but if it’s abroad it would be up to you to declare it and pay your dues, or move abroad. If you don’t you would be a tax evader and risk all of the usual penalties that go along with that.
That’s true but they might only say “All Irish residents must pay a one off 1% levy on all cash deposits they hold in domestic bank accounts”. - less money from it but easier to administrate.
They wouldn’t have to administer it though. Deduction at source where possible, self-assessment for everything else…
Was lucky timing with the nasty weather in Dublin today and probably for the rest of the week.
We might get away without any serious protest marches for a couple of days.
Not that I am saying that there is a reason for protesting - but remember the fuss that was kicked up when they were trying to abolish the medical card for over 70ies…
Joan Burton confirmed that the bereavement grant is abolished because funeral service providers had priced it into their services.
Now to get the minister for property on message…
David McWilliams made a similar point on Pat Kenny
To paraphrase - 5 years in and what’s the big idea? We’re still borrowing for our lifestyle, we’re exiting the bailout but have we learnt anything from the experience? What are we doing to earn the money we get, citing Finland in the early 90’s as an example of what we should be aiming for. He wasn’t given a chance to give his ideas as they had Joan Burton coming in, didn’t hear after Joan
It’d make more sense to stop calling it PRSI since it’s not pay related, it doesn’t go into an SI fund, and it doesn’t qualify the payer for any SI benefits. Seriously, they should just call it Tax B to save themselves having to invent stupid names like Universal Social Charge when Tax C comes along.
“This bit for you, this bit for me”.
Bit of a shambles that the day after the budget neither of the ministers for finance or welfare know the amount of a tax that will affect a million people. Crazy, in fact.
Three perplexing smaller taxes, with befuddling rates, confounding credits and bewildering reliefs is psychologically less rage-inducing than one big straightforward percentage cut from your gross pay.
They should really put Greek symbols on pay slips for maximum affect and make all rates multiples of the square root of Pi and so forth.