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National Budget 

This is how the Government plans to spend the income they receive and how they are going to raise the finance for this expenditure. It is their financial plan for the year 

Government Revenue 

This is the money the government receives for example taxes 

Current Revenue 

This is money the Government receives every day. It usually comes from taxation 

Capital Revenue 

This is money that is received once off - sale of a state owned company 

Government Expenditure 

This is all the money that is spent by the Government 

Current Expenditure 

This is money spend by the Government on a regular basis. This is usually day-to-day spending a essential services. For example, Health 

Capital Expenditure 

This is once off spending by the Government - For example Building roads 

Tax 

This is a compulsory payment to Government. It is charged on income, business profits or added to the cost of goods and services. 

Tax Liability 

This means that a certain amount of money must be paid to the Government. It is the responsibility of each person to make sure that they pay the correct tax. 

Tax Avoidance 

This is a legal way of reducing the amount of txt that you must pay. For example, you can claim tax credits which will reduce your tax bill 

Tax Evasion 

This is illegal and usually happens when people fail to declare some or all their tax. Those found guilty will pay interest and penalties or may go to jail. 

PAYE 

This is known as Pay As You Earn and is paid by employees on their wages, salaries, BIK, bonus or overtime. The employer will deduct this before paying the employee and sent it to Revenue. Worker on a income may be exempt for paying PAYE 

Self-Assessment Income Tax 

This is tax that is paid by self-employed. The person calculates how must tax they have to pay and send it to Revenue. To make sure they are paying the correct tax Revenue will conduct regular Tax Audits. 

Tax Audits 

This is when revenue check that a business sis paying the correct tax. They do this by looking the business accounts 

Universal Social Charge 

This is also known as USC. It is payed on income over a certain level. It is paid at different level and it is an extra tax on top of PAYE 

Value Added Tax 

This is also known as VAT and is a tax on goods and services. VAT is usually included in the price of the product or service. The rate of tax at present in Ireland is 23%. Some items are except from tax - for example Children's clothing. 

Custom Duties 

This is a tax on goods form outside the EU 

Excise Duties 

This is a tax that is levied on certain goods. For example, petrol, heating oil, natural gas, Alcohol 

Local Property Tax 

This is a tax that is paid on property. The tax paid depend on the value of the house. This is a self-assessment tax, so the home owner calculates how much they pay. 

Capital Acquisition Tax : This is tax that is paid on gifts and inheritance. This is when something if left to a person following the death of someone. The tax is only paid when the value is above a certain amount  

TYPES OF TAX  

There are two types of tax. These are 1. direct Tax and 2. Indirect tax  

1. Direct Tax  

This is tax that is put (Levied) on income as it is earned – it is deducted as source. This means that the tax is calculated, collected and sent to revenue by the person who is paying the income rather than the person who has earned it. For example, DIRT (calculated, collected and sent to revenue by the Bank) PAYE (calculated, collected and sent to revenue by the business)  

2. Indirect Tax  

These are taxes that are put (Levied) as money is spent on goods and services. For example, VAT, Excise Duty and Custom Duty. Indirect tax is the same for all no matter how much you earn. This can put pressure of low income because this tax takes a greater proportion of their income that someone who has high income  

Regressive Tax 

Def: This tax that is paid the same by all not matter how much their income is  

Progressive Tax  

Def: This is a system where people earning a higher income pay a higher tax  

Infrastructure 

These are all the service and structures that are needed for a country to function. For example - Transport, Water 

National Budget 

This is how the Government plans to spend the income they receive and how they are going to raise the finance for this expenditure. It is their financial plan for the year 

Balanced Budget 

This is when planned revenue (Income) equals planned expenditure (Spending) 

Budget surplus 

This is when planned revenue (Income) is higher than planned expenditure (Spending) 

Budget deficit 

This is when planned expenditure (Spending) is higher than planned revenue (Income) 

Glossary of Key Terms