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Ch 16 Managing a Business & A Household: Taxation - Coggle Diagram
Ch 16 Managing a Business & A Household: Taxation
Reasons for Taxation
Government revenue
Redistribution of Wealth
Discouraging Consumption
Types of tax
Direct tax i.e. a tax on income e.g. PAYE
Indirect tax i.e. a tax on goods/services e.g. VAT
Taxes Paid by Both Households & Businesses
VAT
Motor Tax
Capital gains Tax (CGT)
Customs Duty
Excise Duty
Carbon Tax
PRSI
Taxes Paid by Households Only
PAYE
Self-Assessment Income tax
USC
DIRT
Local property tax (LPT)
Capital Acquisitions Tax (CAT)
Taxes paid by Businesses Only
Corporation Tax
Commercial Rates
The PAYE System
Tax rate/band
Tax Credits
PAYE Modernisation
Commencing Employment.....Personal Public Services Number (PPSN)
During Employment-can look at their account for up to date information on taxes they have paid
Ending Employment-communicate with the Revenue System through your account to ensure it's available to new employer/local social welfare office
Benefits of PAYE Modernisation
Employer
Seamless
Minimise costs
Abolition of forms
Right tax
Time savings
Employee
Simplified
Maximise the use of tax credits
Automatic review
Real-time reporting
Transparency
Tax Non-Compliance
Tax Evasion
Tax Avoidance
Positive Implications of Tax
Households
Redistribution of Wealth
Improved Public Services
Businesses
Tax Incentives
Lower Rates of Corporation Tax
Negatives Implications of Tax
Households
Reduces Disposable Income
Higher Prices
Regressive Taxes
Businesses
Overtime
Employer's PRSI
Discourages Enterprise
Household and Business Taxes
Similarities
Registration
Tax Compliance
Tax Avoidance
Record Keeping
Household and Business Taxes
Differences
Reduced Tax Liability
Reclaim VAT
Greater Range of Taxes
Tax Collection