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THE IRISH GOVERNMENT has been handed a significant pre-Budget boost after the European Union’s highest court indicated it was likely to reject a challenge from the European Commission about how Ireland implements a European VAT directive.
The European Commission had initiated action against Ireland, claiming it was in breach of an 2006 directive by allowing non-taxable entities to be grouped together with taxable ones for the purposes of paying VAT.
Ireland groups individual corporate entities and their holding companies together for the purposes of charging VAT, even though holding companies are exempt from VAT because they do not directly engage in trading themselves.
This is because holding companies can hold or command the assets of their subsidiaries, and can therefore be liable if one of its subsidiaries goes bust.
However, the European Commission had claimed that this was in breach of a directive agreed by heads of state in 2006, and implemented in 2007, and had sought an order from the ECJ that Ireland abandon its policy of grouping taxable and non-taxable bodies together.
The case was heard at the court in Luxembourg in September, and a full ruling is not expected until next year – but an advocate-general of the court has issued an opinion on the case in which they find that Ireland is not in breach of the directive.
The opinion, issued yesterday, finds it is “not an anomaly that non‑taxable persons can belong to a VAT group”.
“This is so because any taxable person may be engaged in activities falling within the scope of VAT and activities falling outside of the scope of VAT,” the opinion says.
The opinion is not binding upon the justices of the court when they reach their final ruling, but an advocate-general’s opinion is almost always accepted and concurred with by the judges issuing their final ruling.
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Bertie who?
oh, i remember wee Bertie all too well!
this is a “man” who sold our country out to scumbag thieving property developers who promptly put the next 2 generations of irish citizens in hock to foreign banks just so’s he could remain on as Taoiseach for a few more years.
that he has the gall to be commenting from the sidelines would be amazing, but for the fact that the chap is TOTALLY delusional, and has been for a long number of years now.
the sooner he takes himself off to Traitor’s Gate, and avails himself of some of the medicine he advised others to take in years gone by the happier i’ll be.
Bertie Bassett?
best thing to do with bertie is never mention him again. that would be his worst nightmare.
Bertie Bassett…oh he was so sweet :-)) Hmmmm, I am craving for a liquorice right now…
Luck of the Irish…
Good for him but why spread it over 20 years? OK, I can see the logic some people cannot handle money but I would prefer the $10 million up front.
The American lottery system is set up to pay out annually for 20 years so they can collect accumulating interest on money sitting in their accounts.
Also, $10 million isn’t $10 million. About 32.5% comes off the top in taxes and THEN the winner can start collecting annual payments. At $337,000 x 20 years is only $6.74 million.
Still, I wouldn’t pass up $337K a year for the next 20 years. I’d put at least $250K of it into account annually and not touch it, but also accruing interest of my own. :-)
Thank you for that tax lecture…duh! I am a Tax Accountant by the way. I just don’t practise anymore. Got fed up of City life and the rat race.
However, I am surprised that the US lottery winnings are taxed. Most other countries, especially in Europe, let you have the money free of taxes. And in some lotteries if you pay the tax when buying the ticket (peanuts compared to what you may win) that’s the end of your obligations.
I don’t think two lines account for a lecture, Dan. And unless you go around with a sign on your head that says Dan the Accountant, who’s to know?!
I’m not surprised the US lottery winnings are taxed. America taxes everything. They even have the right to tax American’s living and working in Ireland if their annual income covers over a certain limit. But I don’t have to tell you that. You know everything! ;-)
Hahahahahahahaha! Bloody ha!!!!!!
Happy Valentine’s Day, Dan! :-D
9.; Who gives a flying toss, I don’t. Are ‘celebrities’ really news? Who decides?
We always try to make the 9th item in the 9 at 9 something a little off-beat and less serious – sorry if it’s not to your tastes… 8 out of 9 ain’t bad?
Oh! Didn’t realise that! Fair enough I suppose, to distract us from all the bad news. Point taken!
PS – given your reasoning, maybe you should rename it the 8 1/2 at 9 :-)
Shootings , shootings and more shootings… great to see how effective our criminal justice system is!
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