Module

Tax Knowledge: Volume 1

Tax Knowledge: Volume 1

Educational material, not professional, tax or legal advice. Figures reflect Irish law as understood when written — check Revenue.ie or a qualified adviser before acting. Not affiliated with or endorsed by any professional body.

• 01Describe the historical development of the Irish legal system
• 02Describe the nature of the European Union and how membership has impacted on Irish Law
• 03Identify the hierarchy of sources of law
• 04Describe common law as a source of law
• 05Describe Irish domestic legislation as a source of law
• 06Explain the role of the Constitution as a source of law
• 07Describe the various sources of European law
• 08Assess the interaction of the Constitution with European law
• 09Assess the interaction of legislation with the Constitution and European law
• 10Describe other sources of law
• 112026 legal research hierarchy and source dating
• 12Outline the legal basis of the Irish courts
• 13Describe the role and purpose of the Appeal Commissioners
• 14Describe the role and purpose of the District Court
• 15Describe the role and purpose of the Circuit Court
• 16Describe the role and purpose of the High Court
• 17Describe the role and purpose of the Court of Appeal
• 18Describe the role and purpose of the Supreme Court
• 19Describe the roles of the Attorney General and the Director of Public Prosecutions
• 20Outline the judicial review process
• 21Current court jurisdictions and tax appeal deadlines
• 22The proposed Tax Appeals reforms: recheck, do not assume
• 23Explain the mission of the ECJ
• 24Describe the ways in which a case can come before the ECJ
• 25Explain the presumptions that apply in interpreting legislation
• 26Set out the rules of statutory interpretation
• 27Identify other aids to the interpretation of legislation
• 28Interpreting tax legislation with modern purposive controls
• 29Explain judicial precedent as a source of law
• 30Identify the different elements of a judgment
• 31Basic Concepts
• 32Tax Policy Areas
• 33Tax Expenditures (Incentives)
• 34Describe the penalty provisions and the action which can be taken to reduce penalties
• 35Penalties for filing an incorrect return or failing to file a return
• 36Meaning of "deliberate", "careless" and "significant consequences"
• 37Full Cooperation
• 38Qualifying disclosures
• 39Technical adjustments and innocent errors
• 40Self-correction
• 41No "Loss of Revenue"
• 42Late filing surcharge
• 43Defaults within the scope of the legislation
• 44Fixed penalties
• 45Determination and recovery of penalties
• 46Describe the Revenue Compliance Intervention Framework and the purpose of a Revenue compliance intervention
• 47Level 1 compliance interventions
• 48Level 2 compliance interventions
• 49Level 3 compliance interventions
• 50Describe what is involved in a Revenue audit
• 51Outline key practical rules for the conduct of Revenue audits
• 52Explain what records a taxpayer is obliged to retain
• 53Describe Revenue's powers
• 54To inspect documents and records
• 55To require production of accounts and books
• 56To involve the Gardai
• 57Apply the code of practice to a set of circumstances and advise the taxpayer of their rights and obligations
• 58The 2026 Compliance Intervention Framework decision tree
• 59Prompted and unprompted qualifying disclosures
• 60Employment-status corrections after Karshan
• 612027 Revenue-intervention recheck gate
• 62An introduction to Income Tax and the Schedular System
• 63The Schedular System
• 64Tax rates, credits and bands
• 652026 Income Tax bands and principal credits
• 66Establish the scope of an individual's charge to Irish income tax and conclude on the extent of the charge to Irish income tax on a range of domestic and foreign income sources where the individual is resident, ordinarily resident or domiciled in Ireland
• 67Describe how and when an individual can elect to be tax resident
• 68Establish an individual's charge to the domicile levy
• 69Residence day-count working paper
• 70Conclude on what constitutes a trade based on the Badges of Trade
• 71Outline the general basis of assessment for Schedule D Case I and II
• 72Identify allowable and disallowable expenditure for the purposes of arriving at Case I and Case II profits
• 73Compute the taxable profit of a sole trader applying the above rules and reliefs
• 74Trade - commencement and cessation rules
• 75Outline the basis of assessment for Case I and II in relation to start-ups, cessations and changes in accounting date
• 76Karshan status review for sole traders and engagers
• 772026 business-profit adjustment schedule
• 78Outline the basis period for capital allowances
• 79Describe how grants received are treated for the purposes of capital allowances
• 80Identify when expenditure qualifies as "plant" for capital allowance purposes
• 81Summarise the conditions that must be fulfilled for capital allowances to be available on plant and machinery
• 82Describe the tax implications of disposing of an asset on which capital allowances were claimed
• 83Assess if capital allowances on plant and machinery are available in a practical situation and calculate any allowances available
• 84Summarise the conditions that must be fulfilled for capital allowances to be available for motor cars
• 85Assess if capital allowances on motor cars are available in a practical situation and calculate any allowances available
• 86Identify what constitutes an industrial building
• 87Summarise the conditions that must be fulfilled for industrial buildings allowances to be available
• 88Describe the tax implications of disposing of an asset on which industrial buildings allowances were claimed
• 89Assess if capital allowances on an industrial building are available in a practical situation and calculate any allowances available
• 90Plant and machinery control schedule
• 91Electric vehicles and the 2027 acquisition-date gate
• 92Identify what income is taxable under Schedule D Case V
• 93Outline the basis of assessment for Schedule D Case V
• 94Identify allowable and disallowable expenditure for the purposes of arriving at Case V profits
• 95Explain the implications of claiming certain reliefs
• 96Compute Case V profits applying the above rules and reliefs
• 97Residential Premises Rental Income Relief: 2026 and 2027
• 98Rental expense evidence and capital/revenue boundary
• 99Identify what income is taxable under Schedule D Case III
• 100Outline the basis of assessment for Schedule D Case III
• 101Identify when withholding tax arises on investment income and show how it is treated in a tax computation
• 102Compute Case III profits and any associated tax relief applying the above rules and reliefs
• 103Describe how an individual who receives foreign dividends can be given credit for tax incurred by the company
• 104Explain the rules and practice in determining when a remittance occurs including anti-avoidance measures
• 105Foreign income, remittances and mixed-fund tracing
• 106Identify what income is taxable under Schedule D Case IV
• 107Outline the basis of assessment for Schedule D Case IV
• 108Explain the operation of the DIRT system to Irish and EU deposit income
• 109Identify when DIRT arises and show how it is treated in a tax computation
• 110Compute Case IV profits and any associated tax relief applying the above rules and reliefs
• 111Categorise the statutory sources of income assessable under Case IV
• 112Categorise the items taxable under the general Case IV charge
• 113Explain how relief is granted for losses under Case IV
• 114Compute any tax, PRSI or Universal Social Charge applicable to Case IV income
• 115DIRT, USC and PRSI are separate tests
• 116Identify what income is taxable under Schedule F
• 117Outline the basis of assessment for Schedule F
• 118Determine when and how dividend withholding tax should apply to dividends paid by Irish companies to Irish individual shareholders
• 119Compute Schedule F income and any associated tax relief applying the above rules and reliefs
• 120Apply the scope and basis of assessment of Schedule F to shares received in lieu of dividends (scrip dividends)
• 121Identify the scope of Schedule E
• 122Outline the basis of assessment for Schedule E
• 123Distinguish between the terms "office" and "employment"
• 124Define the terms "emoluments" and "perquisite"
• 125Contrast the meaning of a perquisite and with a benefit-in-kind
• 126Determine how non-cash benefits are subject to Schedule E
• 127Determine the test of deductibility of expenses against Schedule E income
• 128Determine when the reimbursement of expenses by an employer gives rise to a taxable benefit and when it does not
• 129Explain the relief available for termination payments
• 130Separate a termination payment into its taxable and non-taxable elements
• 131Outline the administrative provisions surrounding any claim for relief from tax on termination payments
• 132Distinguish between the terms "employee" and "self-employed" and outline the taxation implications of an individual's employment status
• 133Explain what considerations should be taken into account in determining the status of a worker
• 134Interpret case law and use the principles to distinguish between the terms "employee" and "self-employed"
• 135Apply the rules of Schedule E to determine the tax treatment of payments received by employees
• 136Apply the rules of Schedule E to determine the tax treatment of salary sacrifice schemes
• 1372026 benefit-in-kind valuation control
• 138Unapproved options through payroll
• 139Remote work, travel and reimbursement evidence
• 140Share-scheme annual reporting
• 141Describe the tax relief available for various payments made by an individual
• 142Identify the personal tax credits and reliefs available to an individual by virtue of their personal circumstances
• 143Identify the tax credits available for various payments made by an individual
• 144Compute the personal tax charges, allowances and credits available to an individual
• 145Identify the income tax exemptions that exist due to the personal circumstances of the taxpayer or the source of the income
• 146Compute the taxable income of an individual after claiming all exemptions
• 147Outline the tax credit entitlements of non-residents and compute the Irish tax liability of non-resident individuals in receipt of Irish source income
• 1482026 family rate-band control
• 149Rent Tax Credit through 2028
• 150Outline in principle how tax relief at source is granted
• 151Identify qualifying medical insurance premiums and calculate the amount of relief due
• 152Compare the relief on medical insurance premiums to the relief available for health expenses and permanent health insurance
• 153Outline how the reliefs are claimed
• 154Describe the statutory exemptions from income tax and capital gains tax that are available and any claw-back provisions
• 155Calculate any tax, PRSI or Universal Social Charge payable by taxpayers who claim these exemptions and reliefs
• 156Income Tax relief does not automatically reduce USC or PRSI
• 157Explain why the restriction on 'specified reliefs' for high earners was introduced
• 158Explain the different ways married couples or civil partners may be assessed to income tax and prepare a tax computation based on each
• 159Calculate the relief available to a couple in the year of marriage
• 160Calculate the income tax liability arising for the surviving spouse/civil partner and the deceased spouse/civil partner in the year of death
• 161Calculate the income tax liability arising for both the surviving spouse/civil partner and the deceased spouse/civil partner in the year of death where Revenue concessional applies
• 162Explain how residency impacts on the taxation of married couples or civil partners and calculate any relief available
• 163Explain the tax treatment of separated/divorced couples and the options available to a separated/divorced couple in relation to the taxation of maintenance payments
• 164Outline the entitlement of a separated couple to claim certain tax credits, and contrast with the entitlement of a married couple or civil partners living together
• 165Describe the tax issues surrounding the payment of a mortgage on a family home in the context of divorce/separation
• 166Explain the interaction of the restriction of specified reliefs for high earners and the taxation of married couples or civil partners
• 167Calculate the tax, PRSI and Universal Social Charge for a married couple or civil partners
• 168Joint assessment election and allocation control
• 169Define the key terms used in relation to PRSI
• 170Explain how the Universal Social Charge is applied
• 171Outline the relevant limits and exemptions that apply
• 172Illustrate with an example how PRSI and Universal Social Charge are applied to employment income
• 173Illustrate with an example how PRSI and Universal Social Charge are applied to self-employed income
• 1742026 USC reference bands
• 175PRSI changes on 1 October 2026
• 176Outline the self-assessment system for the collection of tax and filing of returns for individuals
• 177Outline which individuals are subject to this specific administration system, and apply the rules to conclude whether self-assessment obligations apply in particular cases
• 178Detail the registration procedure for self-assessment
• 179Detail any returns of third-party information that may be required under self- assessment
• 180Explain an individual's obligations under the Pay and File system
• 181Describe and compute the consequences of failing to file a return or pay a tax liability in full and on time
• 182Describe the appeals process as it applies to an individual within the self- assessment system
• 183Prepare an income tax return
• 1842026 ROS Pay and File date
• 185Preliminary-tax safe-harbour control
• 186Overview of PAYE modernisation and real-time reporting
• 187Explain how the PAYE real-time reporting collection system operates
• 188Outline the penalties for non-compliance with PAYE real-time reporting
• 189Payroll correction, RPN and submission reconciliation
• 190Introduction
• 191Outline the CGT implications of an individual's residence, ordinary residence and domicile
• 192Explain when non-residents can be charged to Irish CGT Introduction
• 1932026 CGT rate and annual exemption
• 194Define the meaning of "asset" for CGT purposes
• 195Describe and apply the rules regarding the location of assets
• 196Define the disposal of assets for CGT purposes
• 197Apply the treatment of insurance and compensation monies
• 198Apply the treatment of assets used as security
• 199Apply the treatment of disposals by nominees and trustees
• 200Identify when a disposal is made
• 201Explain how to deal with consideration that is partly capital and partly revenue in nature
• 202Explain and apply the interaction of CGT with balancing charges
• 203Explain and apply how and why market value is sometimes imposed and identify occasions when this will happen on disposals
• 204Illustrate how consideration denominated in a foreign currency is treated for CGT purposes
• 205Define the cost of an asset
• 206Explain and apply how incidental costs are treated for CGT purposes
• 207Explain and apply the treatment of enhancement expenditure
• 208Identify occasions when the market value rule is imposed on acquisitions
• 209Explain and apply how the costs of acquisition are arrived at in the case of assets derived from other assets
• 210Explain how the costs of acquisition are arrived at in the case of wasting assets
• 211Illustrate how costs of acquisition denominated in a foreign currency are treated for CGT purposes
• 212Explain how loss relief is granted for CGT purposes
• 213Outline how relief is granted for losses on chattels (both those that qualify for capital allowances and those for personal use)
• 214Outline the timing of loss relief with respect to other reliefs and exemptions
• 215Explain and apply how the market value rules on transactions between connected persons interact with loss relief
• 216Explain the basis for negligible value claims
• 217Describe indexation relief and how it applies to assets acquired both before and after 6 April 1974
• 218Describe the restrictions on indexation relief
• 219Outline an individual's entitlement to the annual exemption
• 220Historic indexation stops at December 2002
• 221Outline the main exemptions from CGT, comparing these to the equivalent exemption from income tax where relevant
• 222Identify when an asset is a chattel and apply the relevant exemptions
• 223Explain Principal Private Residence ("PPR") relief from CGT
• 224Explain the interaction of PPR relief with rent-a-room relief
• 225Explain the relief available on the disposal of a site to a child
• 226Explain the seven-year CGT relief for certain disposals of land or buildings
• 227Summarise the special rules that apply to transfers to or from personal insolvency practitioners who hold assets in trust for the benefit of creditors
• 228Explain and apply the Entrepreneur Relief from CGT and compute the relief available
• 229Revised Entrepreneur Relief: EUR 1.5 million from 2026
• 230PPR final-period and absence controls
• 231Relief claims still require a CGT return
• 232Explain the methods of assessment to CGT for married couples/civil partners
• 233Outline the specific reliefs available on the transfer of assets between spouses/civil partners
• 234Compare this to the treatment of the transfer of assets between spouses/civil partners on separation
• 235Compare this to the treatment of the transfer of assets between couples on divorce/dissolution of civil partnership
• 236Assess the CGT implications of the transfer of assets on death
• 237Understand and outline how gains arising to the deceased up to the date of death are treated
• 238Understand and outline how losses in the year of death are treated
• 239Calculate any CGT implications of the transfer of assets on death
• 240Outline the basic rules relating to the disposal of shares for CGT purposes
• 241Applying first principles, determine the taxation implications of share transactions
• 242Describe how share-for-share exchanges are treated for tax purposes comparing the implications of the inclusion of cash to straight share-for-share exchanges
• 243Explain the reason for the introduction of the "four-week rule" on share disposals
• 244Explain the application of the "four-week rule"
• 245Describe how a company can increase its share capital for company law purposes
• 246Set out the rules affecting the issue of shares for company law purposes
• 247Describe the process by which shares may be transferred for company law purposes
• 248Describe a company's capital maintenance obligations and the consequence of non-compliance
• 249Describe the legal process by which reduction or reorganisation of share capital takes place
• 250Awareness if the legal issues surrounding reorganisations involving a sale of a company including prohibitions and exclusions to financial assistance
• 251Outline the Irish and EU law surrounding company arrangements and reconstructions
• 252Describe how company reconstructions and amalgamations take place
• 253Share-pool and four-week reconciliation
• 254Companies Act and tax relief must both work
• 255Understand why share options and share awards are used in practice and distinguish between them
• 256Describe the events that occur in the life of an option: grant; exercise; forfeiture; abandonment and sale
• 257Explain the CGT implications of unapproved employment share options
• 258Calculate any CGT liability arising on an unapproved share option
• 259Review approved profit sharing schemes, restricted shares ("clogs"), forfeitable shares, convertible shares and shares issued under KEEP scheme as a means of rewarding employees. In relation to each, calculate any CGT liabilities
• 260KEEP horizon and payroll boundary
• 261Interpret the rules providing for "retirement relief" from CGT
• 262Define key terms specific to retirement relief
• 263Explain how the relief applies in the context of certain disposals
• 264Explain if/when marginal relief is available in each of the above scenarios
• 265Outline the impact of change in ownership on the eligibility to claim the relief
• 266Compute the CGT due on a disposal to which retirement relief applies
• 267Retirement Relief limits from 2025
• 268Twelve-year deferral above the child limit
• 269Understand and calculate the CGT relief that applies on the incorporation of a business
• 270Outline the income tax implications of the disposal of a business by a sole trader
• 271Apply first principles of CGT to calculate the CGT arising on leases
• 272Determine the CGT arising on granting
• 273Outline how the sale of a lease differs from its grant
• 274Define development land for CGT purposes
• 275Explain how disposals of development land are taxed
• 276Judge whether a disposal involves development land and calculate any arising tax or restriction of reliefs
• 277Identify the occasions when withholding tax applies to CGT transactions
• 278Outline the procedures the purchaser must follow to account for and return this withholding tax
• 279Outline the procedure for gaining a CGT clearance certificate
• 280Explain how withholding tax applies in situations where no cash changes hands
• 281CG50A and 15% section 980 completion control
• 282Outline the self-assessment system for the collection of tax and filing of returns for individuals
• 283Two CGT payment periods, one annual return
• 284The 2027 capital-tax update gate
• 285Congratulations on completing the module