Taxation is the collection of an obligation or a payment made by a person to a government authority for the payment of taxes or other amount for legal purposes. A tax is an ordered financial charge or any kind of levy imposed on an individual by a government organization so as to fund various public needs and expenditure. Evasion of or refusal to pay tax, and punishment for tax evasion, are both punishable by law. Failure to pay tax however, is not a crime.
Generally, income tax is payable by individuals and corporations vis-a-vis their income or gain and by the government or any private person for the income or gain derived by them from sources within the territory of the Republic of Ireland. In some cases, however, the income tax can be payable by an individual who is self-employed. Income tax also includes the corporate tax, which is generally payable by companies on the income or assets of their shareholders. Individual income tax can be calculated by using certain tables that can be found in the Revenue Procedure Act.
There are several types of taxes on goods and services in Ireland. These taxes are administered through the Excise Duties Commission. The Excise duties commission or the EDC takes the customs and excise duty into account when calculating the individual’s income tax liability on his personal income tax returns. The Excise duty is a percentage of the selling price of the good. Some common types of goods and services that are regularly taxed include beer, wine, spirits, tobacco, Cologne, soap, electricity, gas, salt, beer, milk, hops, cement, granite, limestone, sand, coal, and perishable things like sugar, strawberries, potatoes and cabbage.
The other major type of Irish taxes are the regressive taxes. Regressive taxes take effect after a period of years. When these taxes are passed, the rate of the tax increases with each increase in taxable income. These taxes include the Employment tax, Income Tax, Consumer Price Index (CPI) Tax and the Property Tax. The rates of these taxes vary from year to year.
Excise duty is one of the most common types of regressive taxes. It is levied on goods imported into the country. It is paid by importers when they send their goods to the country. Examples of goods that usually have an excise duty are sugar, tobacco, petroleum, alcohol and other gas or oil products.
Income tax, otherwise known as the Income Tax, is normally charged to individuals or organizations earning over a specific amount. It is levied according to the net income that the person or organization brings in the current year. These taxes are collected by the Internal Revenue Service of the Government of Ireland. Examples of standard income tax rates are GBP rate, Humber/GST rate and Level I/ICRA rate.
The two types of taxes are commonly known as progressive and proportional. Progressive taxes are regressive and they increase in value as the incomes of the individuals or groups increases. Proportional taxes are proportional in nature and they do not increase as income increases. Both the types of taxes can be complex and are administered through different bodies such as Revenue, Department of Finance, Income Tax Council, National Lottery Commission etc. Most of the local authorities in Ireland operate either of the two systems of taxation.
If you are looking for information on how your taxes are structured in Ireland, you could contact the local Revenue office. They will be able to give you the necessary instructions on the kind of tax system you would be paying if you are an individual. However, if you want to deal with an agency providing tax services, you could also visit an online agency that would provide you with all the relevant information you need on taxation. With the help of such an agency, you would be able to understand the entire taxation process better. With this kind of assistance, you would be able to understand how much would be your income and that of your dependents when you would file for tax return.