问答题

问答题 (a) (i) Explain whether Niamh can qualify for the home carers tax credit for the years 2008 and 2009; (3 marks) (ii) State the implications for Keith and Niamh if she claims this tax credit for 2009. (1 mark) Note: Computations are not required for part (a).

问答题 (b) (i) Compute the income tax payable by/refundable to Keith and Niamh for the year 2009, on the basis that they avail of the maximum relief available for Keith’s losses; Note: In 2009 the Trade union subscription tax credit is €70. (12 marks) (ii) Explain why it would have been more tax efficient to have restricted the 2009 claim for loss relief. (2 marks)

问答题 (c) State the conditions under which emergency tax is applied in the PAYE system. (2 marks)

问答题 (d) Niamh’s new employer, who is not in the business of money lending, has offered her a loan of €100,000. This loan would replace an existing building society loan, taken out in 2000. The purpose of this loan was to purchase Keith and Niamh’s principal private residence. The interest rate applicable to the loan offered by Niamh’s employer would be 2% per annum. Required: Explain for Niamh the income tax and PRSI implications, arising on an annual basis, of her taking the loan from her employer assuming that her monthly pay will remain at its current level. (5 marks)