5 ms·

Well, you've just convinced me never to return to Ireland until I retire, thanks!

by rblstr 11y ago

yc1010 11y ago
Yeh me and my kids will be paying for a long time for the worlds biggest banking (per capita) debacle and the destruction of the economy in the 00s by various governments. With kids its sort of hard to leave :( Tho' it is a nice place to live despite all the carry on. But hey look over there at the news yet another multinational setting up to launder/funnel money onto somewhere warmer and seems like a housing bubble is re-inflating again. -------- edit: last year i arranged my salary to remain under the high tax rate band Gross: €32.6 K Net (after PAYE,PRSI,USC): €25 K The accountant said that above this €32K line i would have lost about ~53 cents in taxes for each €1.00 earned by ending up in the highest tax band... So I left the extra money in company (corporation tax 12.5%) and will spread out my wages over few years, tho is risky practice if the company gets sued and loses the money. There is an option to pay into a pension but with the pension funds being so mismanaged and the government actively robbing all pensions and destroying the pension reserve that would be downright stupid.
- 3pt14159 11y ago
  Set up a trust or a separate management company that cannot be easily sued (only one client: your other business). If for some reason Irish tax law doesn't work for this case, you can probably set up a foreign owned management company or quality assurance company. Another option is to buy business insurance for lawsuits, though really do you research and record the call you have with the rep because he will promise you things that are not true. If you don't have one party consent for phone calls in Ireland do it from a country that does.
  - yc1010 11y ago
    Yeh the problem is you do not want to cross Revenue, they do assume your are guilty and you have to prove your innocence when it comes to tax matters. Best if possible not do anything which they might interpret as dodgy.
- ode 11y ago
  Doesn't Ireland have a graduated tax system?
  - mootothemax 11y ago
    Doesn't Ireland have a graduated tax system? According to Wikipedia, it does: http://en.wikipedia.org/wiki/Taxation_in_the_Republic_of_Ireland http://en.wikipedia.org/wiki/Taxation_in_the_Republic_of_Ire... "The taxation of earnings is progressive" Which makes the OP's post rather confusing. Does any country out there not tax progressively? I just can't imagine it - "Great, you got a pay rise! Now you get to take home less, until your pay rises by another $5,000!" Edit: On second reading, I think I understand what the OP is talking about: leaving money in the company they operate, which pays out (I guess through dividends?) at a lesser tax rate than if it were paid out directly as wages. I'm pretty sure this is a standard technique in the rest of the world, and not particularly unique to Ireland.
    - yebyen 11y ago
      That's approximately how I read it. Even if it's his company, money he puts in his own pocket needs to have income tax paid on it (I would suppose this means, after any appropriate corporate taxes are paid by the corporation). If the money does not actually leave the company and go into his pocket, the only taxes that would need to be paid are those (low) corporate taxes. Of what value is money you can't have in your pocket and spend, of course, is an exercise for the reader, but presumably it could be paid out as personal income over a greater number of years (if the company survives that long) without ever paying $0.53/1.00 in personal income taxes on any portion of that money.
      - drcross 11y ago
        This is what I do. I worked hard for three years, pay myself a wage thats in the minimum pay bracket and will travel until the company money is gone. I'm not give a cent more than I have to to those crooks.
    - sbierwagen 11y ago
- aidos 11y ago
  12.5% corporation tax! That's really low. Just had a look around - is it 35% in the US?!
  - deleted 11y ago
    [deleted]
- lkiernan 11y ago
  Can you not pay yourself in dividends?
  - kokey 11y ago
    There's no scaling tax relief on dividends in Ireland, it gets taxed like any other income.

Well, you've just convinced me never to return to Ireland until I retire, thanks!

by rblstr 11y ago

Well, you've just convinced me never to return to Ireland until I retire, thanks!

Yeh me and my kids will be paying for a long time for the worlds biggest banking (per capita) debacle and the destruction of the economy in the 00s by various governments. With kids its sort of hard to leave :( Tho' it is a nice place to live despite all the carry on. But hey look over there at the news yet another multinational setting up to launder/funnel money onto somewhere warmer and seems like a housing bubble is re-inflating again. -------- edit: last year i arranged my salary to remain under the high tax rate band Gross: €32.6 K Net (after PAYE,PRSI,USC): €25 K The accountant said that above this €32K line i would have lost about ~53 cents in taxes for each €1.00 earned by ending up in the highest tax band... So I left the extra money in company (corporation tax 12.5%) and will spread out my wages over few years, tho is risky practice if the company gets sued and loses the money. There is an option to pay into a pension but with the pension funds being so mismanaged and the government actively robbing all pensions and destroying the pension reserve that would be downright stupid.

3pt14159 11y ago
Set up a trust or a separate management company that cannot be easily sued (only one client: your other business). If for some reason Irish tax law doesn't work for this case, you can probably set up a foreign owned management company or quality assurance company. Another option is to buy business insurance for lawsuits, though really do you research and record the call you have with the rep because he will promise you things that are not true. If you don't have one party consent for phone calls in Ireland do it from a country that does.
- yc1010 11y ago
  Yeh the problem is you do not want to cross Revenue, they do assume your are guilty and you have to prove your innocence when it comes to tax matters. Best if possible not do anything which they might interpret as dodgy.
ode 11y ago
Doesn't Ireland have a graduated tax system?
- mootothemax 11y ago
  Doesn't Ireland have a graduated tax system? According to Wikipedia, it does: http://en.wikipedia.org/wiki/Taxation_in_the_Republic_of_Ireland http://en.wikipedia.org/wiki/Taxation_in_the_Republic_of_Ire... "The taxation of earnings is progressive" Which makes the OP's post rather confusing. Does any country out there not tax progressively? I just can't imagine it - "Great, you got a pay rise! Now you get to take home less, until your pay rises by another $5,000!" Edit: On second reading, I think I understand what the OP is talking about: leaving money in the company they operate, which pays out (I guess through dividends?) at a lesser tax rate than if it were paid out directly as wages. I'm pretty sure this is a standard technique in the rest of the world, and not particularly unique to Ireland.
  - yebyen 11y ago
    That's approximately how I read it. Even if it's his company, money he puts in his own pocket needs to have income tax paid on it (I would suppose this means, after any appropriate corporate taxes are paid by the corporation). If the money does not actually leave the company and go into his pocket, the only taxes that would need to be paid are those (low) corporate taxes. Of what value is money you can't have in your pocket and spend, of course, is an exercise for the reader, but presumably it could be paid out as personal income over a greater number of years (if the company survives that long) without ever paying $0.53/1.00 in personal income taxes on any portion of that money.
    - drcross 11y ago
      This is what I do. I worked hard for three years, pay myself a wage thats in the minimum pay bracket and will travel until the company money is gone. I'm not give a cent more than I have to to those crooks.
  - sbierwagen 11y ago
aidos 11y ago
12.5% corporation tax! That's really low. Just had a look around - is it 35% in the US?!
- deleted 11y ago
  [deleted]
lkiernan 11y ago
Can you not pay yourself in dividends?
- kokey 11y ago
  There's no scaling tax relief on dividends in Ireland, it gets taxed like any other income.