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A client was selected for revenue investigation arising from Airbnb activities. The clients spouse has indicated that they want to be treated separately for income tax returns that are to due be submitted however revenue have indicated that despite the separate treatment they will consider the spouses as being jointly and severally liable. Does revenue's interpretation seem correct to treat them as jointly and severally liable even though the separate tax treatment applies.

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Posted by (Questions: 14, Answers: 13)
Asked on 31 January 2019 6:59 am
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This is correct. Separate treatment (TCA 1997 s 1023) merely means the spouses get the benefits of joint assessment (TCA 1997 s 1017) but the credits and reliefs are split between the couple (generally equally, but also in accordance with who is entitled to the credit/relief).

"the husband shall be assessed and charged to income tax, not only in respect of his total income (if any) for that year, but also in respect of his wife’s total income"

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Posted by (Questions: 5, Answers: 5012)
Answered on 6 February 2019 11:08 am

That provision only applies where a husband and wife “elect” to be jointly assessed. s1017 refers (1) Where in the case of a husband and wife an election under section 1018 to be assessed to tax in accordance with this section has effect for a year of assessment”

If that were the case, what is the point of having separate treatment and separate assessment.

( at 7 February 2019 8:22 am)