Taxation Worksheet

Mr. McGuinness

Q1. Compare and contrast business and household taxation.

Q2. Johns annual salary is 100,000. PAYE is paid as follows:

First 42,000 @ 24%
Balance @ 40%
PRSI is 0% on the first 10,000 and 4% on the balance. USC is 2% on the first 10,000,
4% on the next 5,000 and 7% on the balance. Johns tax credits are made up of the
following:
Single Person 2,000 Employee 1,500 Union Member 50
Calculate Johns take home pay for the year.

Q3. Explain the difference between Tax Avoidance and Tax Evasion.

Q4. Mary inherited 2,000,000 from her late aunt. She decided to save 400,000 in a
deposit a/c and invest 1,500,000 in shares. She spent the rest. At the end of the year
Mary sold her shares for as large profit.
Describe the taxes that Mary is liable for (Give reasons).

Q5. Ann and Tom are married. Their combined salary is 150,000. PAYE tax is paid as
follows: First 80,000 @ 20% Balance @ 40%.
PRSI is 0% on the first 10,000 and 4% on the balance. USC is 2% on the first 10,000,
4% on the next 10,000 and 7% on the balance.
Tax credits are as follows: Married Persons 5,000; Employee credit 2,000; Child
credit 3,000 and Age credit 2,000
Compute their net pay for the year.