TX4305 JW 14-15.docVIP

University of Limerick OLLSCOIL LUIMNIGH DEPARTMENT OF ACCOUNTING FINANCE KEMMY BUSINESS SCHOOL END OF SEMESTER EXAMINATION MODULE TITLE: Taxation Theory Practice MODULE CODE: TX4305 SEMESTER: Autumn ACADEMIC YEAR: 2014/2015 PERCENTAGE OF TOTAL MARKS: 75% DURATION OF EXAM: 2.5 hours LECTURER (S): Joanne Whelan EXTERNAL EXAMINER: Prof. Kevin Holland ________________________________________________ INSTRUCTIONS TO CANDIDATES: Answer Question 1 and two other questions. Question 1 carries 35 marks and the remaining questions carry 20 marks each. Tax tables are set out at the end of the paper. If more than two of the 20 mark questions are answered, marks will be awarded for the first two only in order of appearance on the examination script. ________________________________________________ Question 1 (This question is compulsory and all parts must be answered) Simon Quinn is a single, Irish resident and domiciled individual who has worked for a logistics company since 1 January 2002. Simon took voluntary redundancy and left the company on 30 November 2014. His severance package comprised the following: € Statutory redundancy 23,500 Ex gratia lump sum 80,000 Pay in lieu of notice 5,000 Tax free lump sum from pension scheme 5,500 In addition, the company transferred ownership of his company car to him, which was valued at €19,750. The original market value of the car was €40,000 when purchased on 1 January 2012. The company paid for all running expenses other than private petrol expenses, which Simon was obliged to pay personally. During 2014 he drove 27,000 kilometres on company business to the 30 November 2014. Prior to leaving his employment, Simon’s only source of income was his remuneration from the company. Details of his income in recent years are as follows: Remuneration (including motor car BIK) € 2013 59,500 2012 52,000 2011 47,500 Details of his remuneration (excluding BIK) from 1 Jan