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

Director Termination Payment

  • 26-05-2017 10:17am
    #1
    HcksawJimDuggan
    Registered Users, Registered Users 2 Posts: 394 ✭✭


    Hi Folks,

    If a company agrees to pay a termination payment to a director who has previously not received a salary from the company, is the director entitled to claim the tax exemption of €10,160 + €765 for each complete year of service?

    Thanks in advance,
    Hcksaw


Comments

  • #2
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    HcksawJimDuggan wrote: »
    Hi Folks,

    If a company agrees to pay a termination payment to a director who has previously not received a salary from the company, is the director entitled to claim the tax exemption of €10,160 + €765 for each complete year of service?

    Thanks in advance,
    Hcksaw

    Is he / she a listed employee of the company?


  • #3
    HcksawJimDuggan
    Registered Users, Registered Users 2 Posts: 394 ✭✭HcksawJimDuggan


    gerrybbadd wrote: »
    Is he / she a listed employee of the company?

    No, they are employed elsewhere under PAYE. They are a 50% shareholder in the company proposing the termination payment.


  • #4
    HcksawJimDuggan
    Registered Users, Registered Users 2 Posts: 394 ✭✭HcksawJimDuggan


    Anyone else able to help on the above?


  • #5
    gerrybbadd
    Registered Users, Registered Users 2 Posts: 10,301 ✭✭✭✭gerrybbadd


    From what i've read, it's extremely complex. Could be considered a distribution from the company, and be taxable in full, depending on circumstances.

    Professional advise should be sought.

    Hacksaw - are you studying tax or something? You always seem to have extremely complex questions


  • #6
    CIARAN_BOYLE
    Registered Users, Registered Users 2 Posts: 14,599 ✭✭✭✭CIARAN_BOYLE


    HcksawJimDuggan wrote: »
    Anyone else able to help on the above?

    My guess would be that there is no ability to claim tax relief in this case for the termination payment. He served as a director but not as an employee. Had he been paid a nominal sum say, €1k pa you could claim tax relief on a termination payment.


  • Advertisement
Advertisement