Olivia, aged 47, is employed by a large multinational company working in software development. She is Irish

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Question:

Olivia, aged 47, is employed by a large multinational company working in software development. She is Irish resident for tax purposes. Olivia receives an annual salary of € 95,000 and an annual bonus in 2020 of € 25,000. PAYE paid for 2020 on this annual salary and bonus amounted to € 37,640. In addition to her salary and bonus,

Olivia also receives the following benefits from her employment:

• She contributes 6% of her annual salary to the company’s occupational pension scheme and her employer matches that contribution;

• Meals, every Monday to Friday in the staff canteen, which are provided free of charge for the bank staff generally. It is estimated the cost of Olivia’s meals to his employer is € 900 annually.

• During the course of her employment Olivia is required to travel and uses her own car for this purpose. Olivia received € 3,500 in mileage payments from her employer during 2020. Olivia’s employer pays mileage in accordance with current civil service mileage rates. Olivia’s other income for the tax year 2020 was:

• Deposit Interest earned from savings in an Irish deposit account of € 201 (net of DIRT);

• Dividends from an Irish plc of € 4,500 (net);

• UK Dividends of € 1,350 (nil UK tax deducted).

Oliva is a single parent. She and her ex-husband Anthony share custody of their only daughter, Grace, who stays with each parent on alternate weeks. Under the separation agreement, Olivia pays Anthony € 400 per month maintenance for Anthony and a further € 250 per month maintenance for Grace. Anthony has agreed to allow Olivia to claim the single parent child carer credit.

Requirement:

Calculate Olivia’s Income Tax liability for the tax year 2020 (ignore PRSI and USC).