Income tax computation.

eire2009

A few wee questions for the experts

CAP 1

1.Is a refrigerator bought for a canteen. An allowable expense or dissalowable expense(because it is capital in nature).
Can you claim wear and tear @ 12.5% for it along with other capital allowences if treated as capital in Case 1/2 adjusted profits.

2. Is an agreed provision for a bonus in the following year of an Income tax computation treated as schedule e income in the assesed year because it is income derived for the assesed year but only recieved a provision for it that year.

3. Is Income arising from Interest from a companys current account is this still treated as non-trading income although recieved via trading account
Case 1/2 adjusted profits


If anyone know off hand could they please help:D

Thanks

namenotavailablE

These are my thoughts (but caveat emptor):

1- The refrigerator would likely be treated as Plant & Machinery. If it had been shown as an item in repairs & renewals under expenses it would be added back (capital in nature) in the Case I computation. You would treat the cost of it as an addition under Plant & machinery in the capital allowances computation and claim 12.5% capital allowances for it.

2- The bonus would be taxed using the rates applying in the period when it was earned ie the prior year, 2008. Additionally, I understand that the new income levies would apply to it if it is paid in 2009- somewhat anomalous but that's the tax system for you.

3- Interest received from Irish banks is a Case IV income source (assuming DIRT was deducted). If DIRT wasn't deducted it's a Case III source.

eire2009

Cheers thanx. Will boost my confidence for tomoro:)