ROS Offline Form 11 USC calculation error

cnocbui

I use the ROS offline app for OSX.

I believe it is making an error calculating USC. It is including as income subject to USC, foreign deposit interest amounts that are subject to tax in the form at 40%.

This seems to contravene Revenue document: Tax and Duty ManualPart 18D-00-01, section 12. Exemptions: Income already subjected to DIRT

Can anyone confirm?

I wanted to edit the form and challenge the calculation, but the software is so utterly woeful the form destroys itself if you try to edit it.

nompere

cnocbui wrote: »

I use the ROS offline app for OSX.

I believe it is making an error calculating USC. It is including as income subject to USC, foreign deposit interest amounts that are subject to tax in the form at 40%.

This seems to contravene Revenue document: Tax and Duty ManualPart 18D-00-01, section 12. Exemptions: Income already subjected to DIRT

Can anyone confirm?

I wanted to edit the form and challenge the calculation, but the software is so utterly woeful the form destroys itself if you try to edit it.

It might be equivalent to DIRT, but it isn't DIRT, which is specific to Irish deposit accounts, so I believe ROS is calculating USC correctly.

cnocbui

nompere wrote: »

It might be equivalent to DIRT, but it isn't DIRT, which is specific to Irish deposit accounts, so I believe ROS is calculating USC correctly.

I'll obviously have to query it with revenue somehow. I thought amounts subject to DIRT weren't subject to USC because they are already massively taxed. If you then go and effectively apply DIRT and USC, then that runs counter to the logic.

Calahonda52

OP
I too had that offline app issue on a Mac.
I gave up with the mac app and used it on windows.

However I now do them online and save them and then just exit RoS, much easier, no drama with waiting for the most recent version of Form bla bla in the app to download

relax carry on

cnocbui wrote: »

I'll obviously have to query it with revenue somehow. I thought amounts subject to DIRT weren't subject to USC because they are already massively taxed. If you then go and effectively apply DIRT and USC, then that runs counter to the logic.

The section of the TCA you are after is 531AM(1)(b)(iii) which covers exemptions for

certain types of investment income listed in clauses (I) to (VII). These are-
deposit interest subject to DIRT (Chapter 4 of Part 8),
dividend payments by Credit Unions (Chapter 5 of Part 8),
deposit interest from EU sources (Chapter 7 of Part 8),
income from certain foreign life assurance policies (Chapter 5 of Part 26),
income from certain investment vehicles (Chapter 1A of Part 27),
income from certain offshore funds (Chapter 4 of Part 27),

If your income isn't in the list then it may be difficult to claim an exemption.

cnocbui

I guess I am just having a hard time understanding the logic. Dirt is utterly illogical from the outset, so i think I can be forgiven.

Deposit interest in one instance, has tax calculated at 40% subtracted from it by a bank.
Deposit interest in a second instance has tax calculated at 40% in the Form 11.

Why is the first instance not subject to USC, while the latter is?