Pádraig MacLochlainn
Ceist:56. Deputy Pádraig Mac Lochlainn asked the Minister for Finance if he will list what is considered deductible for tax purposes for those self-declaring annual returns. [42263/12]
Amharc ar fhreagraThursday, 4 October 2012
Ceisteanna (56)
Freagraí scríofa
I assume that the Deputy is referring to what may be appropriate to deduct in the context of the computation of profits from all sources by those who are required to submit an annual tax return to the Revenue Commissioners under the Pay and File system. I am advised by the Revenue Commissioners that there is no standard list of what is deductible for tax purposes for either companies or individuals that submit annual tax returns. The nature and extent of deductions will vary depending on the type of income or business involved. For example, deductions in relation to rental income are limited to the items listed in section 97 of the Taxes Consolidation Act 1997. These are expenses related to rent, rates, maintenance, repairs, property management expenses, insurance and interest.
In general, profits in relation to a business are based on the profits as computed in accordance with normal accounting rules. This is subject to specific rules in the tax code such as those which provide that certain deductions may not be claimed for tax purposes. For example, section 81 of the Taxes Consolidation Act 1997 ensures that only expenses which are incurred wholly and exclusively for business purposes are deductible. Moreover, entertainment expenses, even if incurred for business purposes, are not deductible.
Question No. 57 answered with Question No. 35.