‘Some Are, And Some Are Not – Do You Know The Difference?’
Are you sure your client’s Court award or settlement isn’t taxable? More often than you might think, they can be. How do you determine what proportion of the lump sum is taxable or exempt? It’s a simple case-by-case scenario. By way of just two examples And did you know that, , termination payments, and income generated from an invested lump sum for personal injuries, are potentially exempt from income tax in certain circumstances?
A high risk assumption to make is that an award or settlement arising out of legal proceedings are exempt from tax as “damages”. For your own PII purposes it is crucial that you know how to analyse this before the settlement is ultimately agreed, and the complexity of this will be examined by Fergal Cahill of Cahill Taxation Services who will talk through the alternative treatments involved on the taxation of Court and legal settlements.
Fergal Cahill is Managing Director of Cahill Taxation Services. Fergal is a Chartered Tax Adviser, having spent a number of years in PwC, KPMG and FGS in both Limerick and Dublin, before setting up Cahill Taxation Services in Ennis, Co Clare, in February 2007. With over eighteen years’ experience, Fergal is recognised as an expert in taxation advisory and consultancy services with particular expertise in Revenue audits, corporate restructuring, personal tax planning and VAT on property.
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