Government targets small savers

10000maniacs

I see the government is looking for individuals who have earned more than €650 in interest on their account in a year to ensure they are paying the correct amount of tax on the interest earned.
After DIRT is taken off the interest, you are left in most cases with a figure that is less than the current level of inflation.:mad:
For most people you would have to €25,000 in an account to get €650 back in interest.
And this €25,000 has already been taxed by on average 40% in PAYE and PRSI.
Its reaching the stage where you would almost feel like splitting your savings into blocks of €25,000 and putting them into different banks under slightly different names, and getting the least amount of interest to keep the interest below €650.

is_that_so

The Revenue Commissioners are not the Govt. Revenue are instructed to maximise income collection. If you want anyone to blame then target those who practise tax evasion.

10000maniacs

is_that_so wrote: »

The Revenue Commissioners are not the Govt. Revenue are instructed to maximise income collection. If you want anyone to blame then target those who practise tax evasion.

Don't you think that their address is the giveaway. Silly boy:o

The Revenue Commissioners
Dept of Finance,
Government Buildings,
Upr Merrion St.
Dublin 2

By the way small savers should not have to bear the brunt the actions of big tax evaders. The Interest cap should be 10 times €650

is_that_so

10000maniacs wrote: »

Don't you think that their address is the giveaway. Silly boy:o

The Revenue Commissioners
Dept of Finance,
Government Buildings,
Upr Merrion St.
Dublin 2

Even though this is an excuse for yet another anti-Government rant I'll give you that. Revenue however are not political and exist to provide a function of government and governance.

From the website.

'To support the achievement of the Government’s economic and social objectives by promoting a sound, sustainable economic and budgetary environment, continuing improvements in the efficiency of public services, and an effective framework for financial services.'

By the way small savers should not have to bear the brunt the actions of big tax evaders. The Interest cap should be 10 times €650

Not sure that €25,000 in the bank is a small saver. Anyway if you are tax-compliant then you have nothing to fear.

Tipsy Mac

To be fair I think they are only looking at people earning massive amounts of interest on hot money, they are not looking at taking money from savers with legit funds.

10000maniacs

is_that_so wrote: »

Not sure that €25,000 in the bank is a small saver. Anyway if you are tax-compliant then you have nothing to fear.

My point is that with €25,000 earned, I have already paid €10,000 to the government coffers. The average I can acheve from the banks is 4% which is 3% after DIRT is taken off. Now 3% is 0.3% below the current rate of inflation. If the revenue treat this as taxable income, my interest earned will be 1.2% below the rate of inflation. How could this be considered fair. It does not make sense to me.
Daylight robbery in my opinion. :mad:

mike65

A bit late with this news!

http://www.boards.ie/vbulletin/showthread.php?t=2055299570&referrerid=59211

Mike.