The Finance Bill amended the application of the composite rates of Income Levies on taxable redundancy payments made in the period 1 January 2009 to 30 April 2009.
This means that taxable redundancy payments made before 30 April 2009 can still avail of the income levy rates in force up to 30 April 2009 as follows:
1% on the first €100,100
2% on the next €150,020
3% on the remainder
This measure goes some way towards alleviating the fundamental uncertainties at the heart of the retrospective taxation measures introduced by the Supplementary Budget. However, there are still a lot of issues to be clarified by Revenue such as if the PAYE taxpayer will have to make payments or indeed can claim a refund at the year end if income levies based on the composite rates differ from income levy operated under the payroll rates. The Finance Bill gives Revenue powers to make regulations necessary to administer the Income Levy so the waiting game continues on how the biggest change to the Irish tax system in ten years will eventually operate.