A revised version of the PRSIREF1 Form is now available on the Department's website. This form should be used by those individuals looking to claim a refund of PRSI in respect of any of the last 4 tax years. Some examples giving rise to a PRSI refund include:
- Class A PRSI incorrectly applied to an employee aged 66 or over,
- Those who hold a Form A1,
- Those who paid legally enforceable maintenance to a spouse or partner.
Question: An employee has been awarded a general purpose loan from his employer who is going to charge the employee 13.5% interest on the loan. What is the taxable BIK arising in respect of this loan?
Answer: As the employer is charging the employee 13.5% interest, a taxable BIK does not arise for the employee as the interest rate charged by the employer is equal to the specified interest rate set by Revenue. A taxable BIK would only arise where the employer charged the employee an interest rate which was lower that the Revenue specified rate (i.e. the Revenue specified rate less the rate charged by the employer to the employee is a taxable BIK).