Part 42 - TCA Notes for Guidance FA 2023

The information in this document is provided as a guide only and is not professional

advice, including legal advice. It should not be assumed that the guidance is

comprehensive or that it provides a definitive answer in every case.

Notes for Guidance - Taxes Consolidation Act

1997

Finance Act 2023 edition

Part 42

Collection and Recovery

December 2023

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42 
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Notes for Guidance - Taxes Consolidation Act 1997 
Finance Act 2023 edition 
Part 42 Collection and Recovery 
CHAPTER 1 Income Tax 
960  Date for payment of income tax other than under self assessment 
961  Issue of demand notes and receipts 
962  Recovery by sheriff or county registrar 
963  Power of Collector-General and authorised officer to sue in Circuit Court or District Court 
964  Continuance of pending proceedings 
965  Evidence in proceedings in Circuit Court or District Court for recovery of income tax 
966  High Court proceedings 
967 Evidence of electronic transmission of particulars of income tax to be collected in proceedings 
for recovery of tax 
968  Judgments for recovery of income tax 
969  Duration of imprisonment for non-payment of income tax 
970  Recovery of income tax charged on profits not distrainable 
971  Priority of income tax debts over other debts 
972  Duty of employer as to income tax payable by employees 
CHAPTER 1A Interpretation 
960A Interpretation 
960B Discharge of Collector-General’s functions 
CHAPTER 1B Collection of tax, etc. 
960C Tax to be due and payable to Revenue Commissioners 
960D Tax to be debt due to Minister for Finance 
960E Collection of tax, issue of demands, etc. 
960EA Payment of tax by relevant payment methods 
960F Moneys received for capital acquisitions tax and stamp duties and not appropriated to be 
recoverable 
960G Duty of taxpayer to identify liability against which payment to be set, etc. 
960GA  Repayment or refund of payment made in excess of liability to tax assessed by taxpayer 
960H Offset between taxes 
CHAPTER 1C Recovery provisions, evidential rules, etc. 
960I Recovery of tax by way of civil proceedings 
960J Evidential and procedural rules 
960K Judgments for recovery of tax 
960L Recovery by sheriff or county registrar 
960M Taking by Collector-General of proceedings in bankruptcy 
960N Continuance of pending proceedings and evidence in proceedings 
960O Winding-up of companies: priority for taxes 

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960P Bankruptcy: priority for taxes 
960Q Recovery of amounts received by a person following the lodgement of an incorrect account, 
etc. 
CHAPTER 1D Power to require statement of affairs, security, etc. 
960R Power of Collector-General to require certain persons to provide return of property 
960S  Security for certain taxes 
CHAPTER 2 Corporation tax 
973  Collection of corporation tax 
974  Priority for corporation tax 
975  Application of sections 964(2), 980(8) and 981 for purposes of corporation tax 
CHAPTER 3 Capital gains tax 
976  Collection of capital gains tax 
977  Recovery of capital gains tax from shareholder 
978  Gifts: recovery of capital gains tax from donee 
979  Time for payment of capital gains tax assessed under section 977(3) or 978(2) and (3) 
980  Deduction from consideration on disposal of certain assets 
981  Payment by instalments where consideration due after time of disposal 
982  Preferential payment 
CHAPTER 4 Collection and recovery of income tax on  certain emoluments (PAYE System) 
983  Interpretation (Chapter 4) 
984  Application 
984A Electronic system 
984B Liability for payment of deduction 
985  Method of collection 
985A  Application of section 985 to certain perquisites etc. 
985B  PAYE Settlement agreements 
985C  PAYE Payment by Intermediary 
985D  PAYE Non-resident employer 
985E  PAYE Employment not wholly exercised in the State 
985F  PAYE Mobile workers 
985G Return by employer 
985H Exceptional circumstances 
986 Regulations 
986A Payment made without deduction of income tax 
987  Penalties for breach of regulations 
988  Registration of certain persons as employers and requirement to send certain notifications 
988A Register of employees 
989  Estimation of tax due for income tax months 

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990 Assessment of tax due 
990A  Generation of estimates by electronic, photographic or other process 
991  Interest 
991A  Payment of tax by direct debit 
991B Covid-19: Special warehousing and interest provisions 
992  Appeals against estimates under section 989 or 990 
993  Recovery of tax 
994  Priority in bankruptcy, etc of certain amounts 
995  Priority in winding up of certain amounts 
996  Treatment for tax purposes of certain unpaid remuneration 
997  Supplementary provisions (Chapter 4) 
997A  Credit in respect of tax deducted from emoluments of certain directors 
CHAPTER 5 Miscellaneous provisions 
998  Recovery of moneys due 
999  Taking by Collector-General of proceedings in bankruptcy 
1000  Priority in bankruptcy, winding up, etc. for sums recovered or deducted under section 531, 
989 or 990 
1001  Liability to tax, etc of holder of fixed charge on book debts of company 
1002  Deduction from payments due to defaulters of amounts due in relation to tax 
1003  Payment of tax by means of donation of heritage items 
1003A  Payment of tax by means of donation of heritage property to an Irish heritage trust or the 
Commissioners of Public Works in Ireland 
1004  Unremittable income 
1005  Unremittable gains 
1006  Poundage and certain other fees due to sheriffs or county registrars 
1006A  Offset between taxes 
1006B  Appropriation of payments 
 
   

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

PART 42

COLLECTION AND RECOVERY

CHAPTER 1

Income Tax

Overview

This Chapter contains provisions dealing with the collection and recovery of income

tax. It sets out the date for the payment of income tax other than that payable under self-

assessment.

960 Date for payment of income tax other than under self assessment

From 1 January 2011 and subsequent years, income tax contained in an assessment for

any year of assessment, other than an assessment under Self Assessment (see Part 41A),

is payable on or before 30 September in that year. However, where such an assessment

is made after 30 September in that year, the tax is due and payable not later than one

month from the date on which the assessment is made.

(1)

For all years up to and including the year ended 31 December 2010 the due date for

payment of income tax contained in an assessment, other than an assessment under Self

Assessment (see Part 41A) is 31 October, for any year of assessment where the

assessment is made prior to 31 October in that year. However, where such an assessment

is made after 31 October in that year, the tax is due and payable not later than one month

from the date on which the assessment is made.

Where, for a year of assessment, any claim for exemption or for any allowance, credit,

deduction, relief or repayment was granted on the basis of an incorrect account,

declaration, information, particulars, return or statement or any other form of claim, and

such incorrect account gives rise to a repayment of tax then interest applies from the

date the repayment was made to the date on which it is recouped.

(2)(a),(b) &

(c)

Income tax contained in an assessment or PAYE Balancing Statement (other than an

assessment made under Part 41A) shall be due and payable as follows:

Where the benefit of a relief, credit, etc. is granted in ‘real time’, for example, in an

individual’s PAYE certificate of tax credits, interest will apply-

• from 1 July in the year in which the certificate of tax credits issued if the

certificate issued prior to that date, and

• from the subsequent 1 January where the certificate of tax credits issued after 1

July,

until the proceeds of the incorrect account are fully recouped.

Where the benefit of a relief, credit, etc. is granted after the end of the year of

assessment, for example by way of a repayment through a PAYE Balancing Statement,

interest will apply from the date the repayment was received by the individual until the

proceeds of the incorrect account are fully recouped.

The rate of interest to be applied is the rate set out in section 1080(2)(c).

961 Issue of demand notes and receipts

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

962 Recovery by sheriff or county registrar

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

963 Power of Collector-General and authorised officer to sue in Circuit Court or

District Court

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

964 Continuance of pending proceedings

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

965 Evidence in proceedings in Circuit Court or District Court for recovery of

income tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

966 High Court proceedings

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

967 Evidence of electronic transmission of particulars of income tax to be

collected in proceedings for recovery of tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

968 Judgments for recovery of income tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

969 Duration of imprisonment for non-payment of income tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

970 Recovery of income tax charged on profits not distrainable

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

971 Priority of income tax debts over other debts

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

972 Duty of employer as to income tax payable by employees

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

CHAPTER 1A

Interpretation

Overview

This Chapter defines terms used in Chapters 1A, 1B, 1C and 1D of this Part. It also

provides that the Revenue Commissioners may nominate any of its officials to perform

any acts and to perform any functions authorised by Chapter 1B to be performed or

discharged by the Collector-General other than acts and functions referred to in section

960N(1) to (4).

960A Interpretation

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For the purposes of Chapters 1A, 1B, 1C and 1D, “Acts” mean the Tax Acts (i.e. the

Income Tax Acts and the Corporation Tax Acts), the Capital Gains Tax Acts, the Value-

Added Tax Consolidation Act 2010, as amended or extended, the statutes relating to

excise duties and the management of those duties as amended or extended, the Stamp

Duties Consolidation Act 1999 as amended or extended, the Capital Acquisitions Tax

Consolidation Act 2003 as amended or extended and Parts 18A and 18B (which relate

to the income levy and the levy on parking in urban areas respectively), Part 18C (which

relates to the domicile levy), Part 18D (which relates to the universal social charge),

Part 18E (which relates to the Defective Concrete Products Levy), Part 22A (which

relates to residential zoned land tax), Part 22B (which relates to the vacant homes tax),

the Energy (Windfall Gains in the Energy Sector)(Temporary Solidarity Contribution)

Act 2023 (which relates to the Temporary Solidarity Contribution), the Finance (Local

Property Tax) Act 2012 and section 101 of the Finance Act 2022 (which relates to the

Temporary Business Energy Support Scheme) and includes any instruments made

under any of those Acts.

Other terms defined in the section are “assessment”, “emoluments”, “income tax

month”, “PAYE Regulations”, “RCT Regulations”, “Revenue officer” and “tax”. It

should be noted that the term “tax”, in addition to all taxes and duties, levies and charges

currently under the care and management of the Revenue Commissioners, also includes

any interest, surcharge or penalty relating to such tax, duty, levy or charge and any

clawback of a relief or an exemption relating to such tax, duty, levy or charge.

960B Discharge of Collector-General’s functions

The Revenue Commissioners may nominate in writing any Revenue officer to perform

any acts and to discharge any functions authorised by Chapters 1B, 1C and 1D to be

performed or discharged by the Collector-General other than acts and functions referred

to in section 960N(1) to (4).

CHAPTER 1B

Collection of tax, etc.

Overview

This Chapter contains provisions relating to the collection of tax, the issue of demands,

the method of payment of tax and miscellaneous provisions such as provisions relating

to the duty imposed on a taxpayer to identify the liability against which a payment is to

be set and provisions relating to offset of a repayment against a tax liability.

960C Tax to be due and payable to Revenue Commissioners

Tax due and payable under the Acts shall be due and payable to the Revenue

Commissioners.

960D Tax to be debt due to Minister for Finance

Tax due and payable to the Revenue Commissioners shall be a debt due to the Minister

for Finance for the benefit of the Central Fund.

960E Collection of tax, issue of demands, etc.

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Summary

This section relates to the collection of tax. It provides that tax is to be paid to the

Collector-General. He/she is obliged to demand payment of outstanding tax and to

collect such tax. He/she may give a receipt in respect of any tax paid. He/she is not,

however, obliged to issue a receipt.

Details

Tax due and payable to the Revenue Commissioners by virtue of section 960B shall be

paid to and collected by the Collector-General, including all tax charged in assessments,

the particulars of which have been sent to him or her under section 959G.

(1)

The Collector-General shall demand payment of tax that is due and payable but

remaining unpaid by the person from whom that tax is payable.

(2)

The Collector-General may issue a demand by electronic means to a person who is

registered to deliver a return and pay tax under the Revenue Online System (ROS) and

a person who is required to deliver a return and pay tax via ROS in accordance with

regulations made by the Revenue Commissioners under section 917EA.

(2A)

The Collector-General shall collect and levy the tax that is due and payable but not paid

by the person from whom that tax is payable.

(3)

On payment of tax, the Collector-General may give a receipt to the person who paid the

tax in respect of that payment. He/she is not, however, obliged to issue a receipt. Such

receipt is to consist of whichever of the following the Collector-General considers

appropriate:

(4)

• a separate receipt in respect of each payment, or

• a receipt for all payments that have been made within the period specified in the

receipt.

960EA Payment of tax by relevant payment methods

Summary

This section provides that tax may be paid to the Revenue Commissioners by credit

card, debit card or any other method or methods of payment which is or are approved

by them. The section enables the Revenue Commissioners to make regulations relating

to these payment methods.

Details

The following definitions apply:

(1)

“prescribed” means prescribed by the Revenue Commissioners in regulations made

under subsection (3);

“relevant payment method” means each of the following methods of payment:

• credit card,

• debit card,

• any other prescribed method or methods of payment;

“relevant person” means the Revenue Commissioners, the Collector-General or a

Revenue officer, as the case may be;

Where a person makes a payment of tax to a relevant person using a relevant payment

method, the relevant person may refuse to accept payment where the Revenue

Commissioners would incur fees or charges in connection with any amount paid using

(2)

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the relevant payment method concerned to the relevant person unless, at the time of

making the payment, the person making the payment agrees to the payment of such

additional charge(s) as may be prescribed arising from the person making payment by

that payment method.

The Revenue Commissioners may make regulations ―

• prescribing a relevant payment method or relevant payment methods or class or

classes of relevant payment methods for the purposes of the section,

(3)(a)

• prescribing the additional charge or additional charges payable in respect of each

relevant payment method or each class of relevant payment method or relevant

payment method or relevant payment methods. Different additional charges may

be prescribed for different payment methods or class of relevant payment

methods, and

(3)(b)

• specifying the period of time within which or the time by which, and the manner

in which any such additional charge or charges prescribed under paragraph (b)

are to be paid.

(3)(c)

(i),(ii)

960F Moneys received for capital acquisitions tax and stamp duties and not

appropriated to be recoverable

Any person who received a sum of money in respect of gift tax, inheritance tax or stamp

duties and does not pay that sum to the Collector-General, and improperly withholds or

detains the same, is accountable to the Revenue Commissioners for the payment of that

sum to the extent of the amount received by that person.

(1)

The sum of money referred to in subsection (1) shall be treated as a debt due to the

Minister for Finance for the benefit of the Central Fund.

(2)

960G Duty of taxpayer to identify liability against which payment to be set, etc.

Subject to subsection (2), every person who makes a payment of tax to the Revenue

Commissioners shall identify the liability to tax against which he or she wishes the

payment to be set.

(1)

Where a payment is received by the Revenue Commissioners or the Collector-General

and the payment is accompanied by a pay slip, a tax return, a demand or other document

issued by the Collector-General, the payment shall be treated as relating to the tax

referred to in the relevant document. This rule takes priority over the rule in subsection

(1).

(2)

Where a payment is received by the Revenue Commissioners or the Collector-General

and it cannot reasonably be determined by the Revenue Commissioners or the

Collector-General from the instructions, if any, which accompanied the payment which

liabilities the person wishes the payment to be set against, the Revenue Commissioners

or the Collector-General may set the payment against any liability due by the person

under the Acts.

(3)

960GA Repayment or refund of payment made in excess of liability to tax

assessed by taxpayer

Summary

This section provides that where any person appeals an assessment, makes a payment

to Revenue in connection with that appealed assessment and is subsequently entitled

to a refund of that payment, either because the person settles with Revenue, is

successful at appeal, or the assessment is determined in her/his favour by a court,

repayment of that amount will not attract interest.

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Details

Section 960GA TCA will, in certain circumstances, disapply any provisions of tax

legislation that provide for payment of interest on a repayment of tax. These

circumstances are where a taxpayer:

• appeals an assessment to the Tax Appeals Commission (or requests judicial

review of a decision of the Appeal Commissioner);

• makes a payment (either directly or otherwise) to Revenue indicating that it is

to be allocated against the appealed assessment; and

• is entitled to repayment of the amount paid in relation to the appeal assessment

because:

o the taxpayer settles with Revenue;

o an Appeal Commissioner determines the appeal in favour of the

taxpayer, or a higher court affirms the decision of the Appeal

Commissioner; or

o a court of legal proceedings issues a final determination in the

taxpayer’s favour.

In these circumstances, any such repayment will not carry interest.

(a)

(b)

(c)

This section will ensure that where a taxpayer makes a payment to Revenue in respect

of an appealed assessment, without accepting the liability as assessed by Revenue, and

is ultimately successful at appeal or a court finds in the taxpayer’s favour, the taxpayer

will not be entitled to receive interest on that repayment. This provision allows Revenue

to accept a payment from a taxpayer in respect of a “disputed” assessment without

prejudging the case by bringing the payment to account against the taxhead in question.

960H Offset between taxes

Summary

This section authorises the Revenue Commissioners to offset a repayment of tax and

interest due to a person in respect of such a repayment against any outstanding tax

liability of the person before making a repayment. Repayment can also be withheld

pending the submission of any outstanding tax returns. Where a repayment is so

withheld, interest is not payable for the period that such repayments have been withheld.

The section also contains an anti-avoidance provision relating to the assignment of a

repayment to another person.

Details

Terms used in the section are defined, viz.

(1)

“claim” means a claim, or part of a claim, that results in either or both a repayment of

tax and a payment of interest payable in respect of such a repayment.

“liability” means any tax (including interest) due or estimated to be due for any period

or in respect of any event, as appropriate.

“overpayment” means a payment or remittance, which exceeds the amount of the

liability against which it is credited.

Where either a payment of any liability of a person is outstanding or tax returns are

outstanding, or both, then where a repayment is due to the person in respect of a claim

or overpayment ―

(2)

• where there is tax outstanding, or where both returns and tax are outstanding, the

Revenue Commissioners can set the amount of the claim against the tax

outstanding, and

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

• where there are only returns outstanding, they can withhold the repayment until

such time as the outstanding returns have been delivered.

Where a person has assigned, transferred or sold a right to a claim or overpayment and

tax is due and payable by that person, the assignment, transfer or sale of that right is

ignored. In other words, Revenue can offset the repayment against any tax liability

owed by the person who assigned, transferred or sold his or her right to a claim or

overpayment. This counters the avoidance opportunity that arises as a result of a

decision, in 2008, of the Court of Appeal in the UK (Commissioners of Revenue and

Customs v Midlands Co-operative Society), where it was held that a right to make a

claim for VAT that had been overpaid can be assigned to another person. The avoidance

opportunity arises where, for example, a company assigns a right to an overpayment of

tax to a company connected to it in order to avoid the provisions of subsection (2).

(3)(a)

Where the first-mentioned person and the second-mentioned person referred to in

subsection (3)(a) are connected persons (within the meaning of section 10), any balance

due to the first-mentioned person is offset against tax due and payable by the second-

mentioned person.

(3)(b)

Where the Revenue Commissioners have either withheld or set off a repayment by

virtue of subsection (2) or (3), a notice in writing shall be given to the person concerned

and, in circumstances where only a return is outstanding, interest will not be payable by

the Revenue Commissioners from the date the notice is given.

(4)

The Revenue Commissioners are required to make regulations to give effect to the

section. Such regulations are to set the order of priority of outstanding liabilities against

which any claim or overpayment is to be set.

(5)

Regulations made under the section are required to be laid before Dáil Éireann and may

be annulled by the Dáil within 21 days by a resolution. This is, however, without

prejudice to anything already done under the regulations.

(6)

The Taxes (Offset of Repayments) Regulations 2002 (S.I. No. 471 of 2002) have effect

as if they were made under subsection (6).

(7)

CHAPTER 1C

Recovery provisions, evidential rules, etc.

Overview

This Chapter deals with the recovery of tax. It also contains provisions relating to the

priority given to certain taxes in the event of a company being put into liquidation or

receivership and an individual becoming bankrupt.

960I Recovery of tax by way of civil proceedings

Summary

This section deals with civil proceedings taken by the Collector-General in any court to

recover outstanding tax.

Details

Without prejudice to any other means by which payment of tax may be enforced, any

tax due and payable may be sued for and recovered by proceedings taken by the

Collector-General in any court of competent jurisdiction.

(1)

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All or any of the amounts due from any one person may be included in the same

summons.

(2)

The rules of court applicable to civil proceedings commenced by summary summons,

in so far as they relate to the recovery of tax, will apply to proceedings under this

section.

(3)

The acceptance of a part payment or a payment on account in respect of tax referred to

in a summons shall not prejudice proceedings for the recovery of the balance of the tax

due and the summons may be amended accordingly.

(4)

Proceedings under the section may be brought for the recovery of the total amount

which an employer is liable, under Chapter 4 and the Income Tax Regulations, to pay

to the Collector-General for any income tax month without distinguishing the amounts

for which the employer is liable to pay by reference to each employee and specifying

the employees in question.

(5)(a)

For the purposes of the proceedings referred to in paragraph (a), the total amount shall

be one single cause of action or one matter of complaint.

(5)(b)

Nothing in the subsection will prevent the bringing of separate proceedings for the

recovery of each of the several amounts, which the employer is liable to pay by

reference to any income tax month and to the employer’s several employees.

(5)(c)

Any amount being an assessment of tax referred to in section 990 and any amount being

an assessment of tax referred to in section 990 (or any balance of tax assessed under the

section but remaining unpaid) will be deemed to be an amount of tax which any person

paying emoluments was liable, under Chapter 4 and the Income Tax Regulations, to

pay to the Collector-General.

(6)

960J Evidential and procedural rules

Summary

This section sets out rules of evidence and procedure in relation to proceedings taken

by the Collector-General for the recovery of tax.

Details

In any proceedings for the recovery of tax, a certificate signed by the Collector-General

stating the following matters is to be evidence of those matters until the contrary is

proved —

(1)

• that an assessment for the tax has been made,

• that the assessment is final and conclusive,

• that the tax or any part of the tax is due and outstanding,

• that a demand for the payment of the tax has been made.

Subsection (1) will not apply in the case of tax to which Chapter 4 applies, i.e. in the

case of PAYE tax.

(2)(a)

In proceedings for the recovery of PAYE tax, a certificate signed by the Collector-

General that a stated amount of income tax under Schedule E is due and outstanding

will be evidence unless the contrary is proved.

(2)(b)

In proceedings for the recovery of tax, a certificate signed by the Collector-General

certifying the facts or any of the facts referred to in subsection (1) or (2) may be given

in evidence without proof. Such certificate will be treated as having been signed by the

(3)

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person holding the position or office of the person signing at the time of signature unless

the contrary is proved.

If a dispute arises in relation to a certificate referred to in subsection (1), (2) or (3)

during the course of the proceedings for the recovery of tax, the judge has power to

adjourn the proceedings to allow the Collector-General or the Revenue officer

concerned to attend the hearing and give oral evidence and for any register, file or other

record to be produced.

(4)

960K Judgments for recovery of tax

Where, in any proceedings for the recovery of tax against a person, a judgment is

obtained, the acceptance of a sum on account or part payment of the amount for which

the judgment was given will not prevent or prejudice the recovery of the balance due

under the judgment. All rights that attached to the original amount due will attach to the

balance outstanding. A certificate signed by the Collector-General stating the amount

of the balance will be evidence of the amount of the balance unless the contrary is

proved.

960L Recovery by sheriff or county registrar

Summary

This section deals with the situation where the Collector-General issues a certificate to

the sheriff or county registrar in relation to the collection of outstanding tax.

Details

Where any person does not pay any sum in respect of tax, the Collector-General may

issue a certificate to the sheriff or county registrar in which the defaulter resides or has

a place of business certifying the amount in default and the person from whom the that

amount is due.

(1)

A certificate to be issued by the Collector-General under this section may be issued in

an electronic or other format. Where the certificate is issued in non-paper format, it may

be reproduced in a paper format by the county registrar or sheriff or by persons

authorised by the county registrar or sheriff to do so. A certificate issued in non-paper

format will be treated as a valid certificate for the purposes of this section. Where a

certificate issued by the Collector-General is reproduced in non-paper format and the

reproduction states or there is a note attached to it that it is a copy of the original

certificate and the note contains the signature of the county registrar or sheriff or a

person authorised by him, the copy of the certificate with the note will have the same

effect as if it was the certificate itself.

(2)

On receipt of the certificate, the sheriff or county registrar must proceed immediately

to collect the sum in default by seizing goods, animals or other chattels within his or

her bailiwick belonging to the defaulter. In addition to the rights, powers or duties

conferred by this section, the sheriff or county registrar has the rights, powers and duties

vested in him or her by law in relation to the execution of a writ of fieri facias in so far

as those rights, powers or duties are not inconsistent with the additional rights, powers

or duties conferred by this section.

(3)

A sheriff or county registrar executing a certificate is entitled to charge fees and

expenses depending on the amount of tax due and calculated according to the scales of

fees laid down by the High Court, Circuit Court and District Court.

(4)

960M Taking by Collector-General of proceedings in bankruptcy

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The Collector-General may take bankruptcy proceedings in respect of the taxes and

duties to which this legislation applies with the exception of corporation tax.

(1)

The rules of court and the enactments relating to bankruptcy (e.g. the Bankruptcy Act

1988) will apply to proceedings under this section.

(2)

960N Continuance of pending proceedings and evidence in proceedings

Summary

This section deals with the continuance of proceedings relating to the recovery of tax

where there is a change of Collector-General or other Revenue personnel. It also

contains rules of evidence relating to those proceedings.

Details

Where proceedings for the recovery of tax have been instituted under section 960I(1)

or 960M(1) and there is a change of Collector-General, the new Collector-General can

become party to these proceedings in place of the former Collector-General and can

continue with the proceedings.

(1)

The new Collector-General will inform the person or persons against whom the

proceedings are being continued. On service of such notice, it will not be necessary for

the new Collector-General to obtain an order of court substituting him or her for the

original Collector-General who instituted or continued proceedings, notwithstanding

any rule of court to the contrary.

(2)

Any affidavit or oath to be made by a Collector-General for the purposes of the Land

and Conveyancing Law Reform Act 2009 may be made by a successor to the Collector-

General.

(3)

Where the new Collector-General institutes or continues proceedings taken under

section 960I(1) or 960M(1), the previous Collector-General is deemed for the purposes

of the proceedings to have ceased to be the Collector-General.

(4)

If, during the course of proceedings for the recovery of tax, the officer who commenced

the proceedings dies or ceases for any reason to be a Revenue officer, another officer

can be substituted in his or her place.

(5)

A certificate signed by the Collector-General that a person is a Revenue officer and has

been authorised by them for the purposes of the proceedings is evidence of those matters

until the contrary is proved.

(6)

Where there has been a substitution of a Revenue officer as plaintiff in the proceedings,

a certificate by the Collector-General is evidence of the substitution until the contrary

is proved.

(7)

960O Winding-up of companies: priority for taxes

Summary

This section deals with the priority attached to certain taxes owed to Revenue where a

company goes into liquidation or receivership.

Details

Terms used in the section (i.e. “Act of 2014”, “Act of 2010”, “relevant date”, “relevant

period” and “relevant subsection”) are defined.

(1)

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Corporation tax and capital gains tax are deemed to be included among the taxes that

have priority on the winding up of a company. Capital gains tax is included as

companies pay capital gains tax for gains realised on the disposal of development land.

(Companies pay corporation tax rather than capital gains tax in respect of gains realised

on the disposal of other chargeable assets.)

(2)

VAT (and interest charged on that tax under section 114 of the Value-Added Tax

Consolidation Act 2010) for which a company is liable for taxable periods (as defined

in that Act) are to be paid in priority to all other debts on a winding up of a company.

(3)(a)

For the purposes of section 440 of the Companies Act 2014 (which relates to the

preference attaching to certain payments when a receiver is appointed under a floating

charge), paragraph (a) is deemed to be included in section 621 of the Act, which refers

to the preferential status of PAYE debts.

(3)(b)

Unpaid amounts of an authorised employer’s PAYE liability have preferential status on

the winding up of a company.

(4)(a)(i)

Where a company goes into liquidation or receivership, arrears of relevant contracts

(i.e. subcontractors) withholding tax under Chapter 2 of Part 18 and regulations made

under that Chapter and arrears of tax due under PAYE assessments made under section

990 for the 12-month period ending on the date the company went into liquidation or

receivership are deemed to be preferential PAYE arrears and, therefore, rank along with

other tax debts for priority payment.

(4)(a)(ii) to

(v)

Where arrears referred to in paragraph (a)(ii) to (v) are for a period that straddles the

12-month preferential period, only the amount of the tax apportioned on a time basis

falling within that 12-month preferential period is to be treated as preferential.

(4)(b)

The employer’s liability for a period of 12 months includes all tax which the employer

is obliged to deduct from emoluments paid to the employees during that period

(including any amounts of PAYE and interest on such amounts which would have been

due to be remitted by the employer if that employer had been sending in remittances on

the normal basis), reduced by any repayments which the employer is required to make

under the PAYE system in that period, together with any interest payable in respect of

that tax.

(4)(c)

960P Bankruptcy: priority for taxes

Summary

This section deals with the priority attached to certain taxes owed to the Revenue

Commissioners where an individual becomes bankrupt.

Details

Terms used in the section (i.e. “Act of 2010”, “Act of 1988” and “relevant period”) are

defined.

(1)

Capital gains tax, local property tax and vacant homes tax are deemed to be included

for the purposes of section 81(1)(a) of the Bankruptcy Act 1988, which gives priority

over all other debts to income tax assessed on a bankrupt.

(2)

The priority attaching to the taxes to which section 81 of the Bankruptcy Act 1988

applies also applies to VAT (and interest on that tax), arrears of PAYE owed by an

employer, arrears of relevant contracts (i.e. subcontractors) withholding tax under

Chapter 2 of Part 18 and regulations made under that Chapter and arrears of tax due

under PAYE assessments made under section 990 for the 12-month period ending

before the date on which the order for adjudication of the person as a bankrupt was

(3)

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made, the petition of the arrangement of the person as a debtor was filed or the person

died insolvent.

Where arrears (other than arrears of VAT and interest and arrears of PAYE owed by an

employer) are for a period that straddles the relevant 12-month period, only the amount

of the tax apportioned on a time basis falling within that 12-month period is to be treated

as preferential.

(4)

The employer’s liability for a period of 12 months includes all tax which the employer

is obliged to deduct under the PAYE system from emoluments paid to employees during

that period, reduced by any repayments which the employer is required to make under

the PAYE system in that period, together with any interest payable in respect of that

tax.

(5)

960Q Recovery of amounts received by a person following the lodgement of an

incorrect account, etc.

Summary

This section is predominantly aimed at PAYE individuals who make or deliver for any

purpose of the Acts an incorrect account, declaration, information, particulars, return or

statement, in connection with any claim for exemption or for any allowance, credit,

deduction, relief or repayment. However it also accommodates collection of monies

received on the basis of any incorrect account for such relief as mortgage interest relief

(i.e. tax relief at source, whether or not the recipient is in the tax net).

Details

All amounts received by an individual on the basis of an incorrect account, declaration

etc, shall be refunded to the Revenue Commissioners.

(1)

All amounts (i.e. proceeds of an incorrect account, declaration, etc.) to be refunded to

the Revenue Commissioners shall be determined by a Revenue officer and the amounts

contained in such a determination shall be collected and recovered as if they were an

amount of tax.

(2)

The determination under subsection (2) may be made at any time. (i.e. there is no time

limit).

(3)

An individual who is aggrieved by the determination made under subsection (2) may

appeal the determination by notice in writing to the Appeal Commissioners. An appeal

must be made within 30 days after the date of the notice of that determination. The

appeal is heard and determined by the Appeal Commissioners in the manner provided

for in Part 40A of TCA 1997.

(4) (a)

Where a determination under subsection (2) is appealed, a taxpayer may not

subsequently appeal their assessment on the same grounds.

(b)

A Revenue officer or Inspector may raise an assessment to collect tax due arising from

the proceeds of an incorrect account, declaration etc.

(5)(a) & (b)

The assessment need only set out the amount of tax due arising from the proceeds of an

incorrect account, declaration etc. No other particulars need be included in the

assessment.

An assessment under subsection (5) may be made at any time. (i.e. there is no time

limit for the raising of an assessment).

(6)

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CHAPTER 1D

Power to require statement of affairs, security, etc.

Overview

This Chapter enables the Collector-General to require a statement of affairs (section

960R) or a security for certain taxes (section 960S) from a person in certain

circumstances.

960R Power of Collector-General to require certain persons to provide return of

property

This section enables the Collector-General or a nominated Revenue officer to require a

statement of affairs to be delivered within 30 days of the date of the notice from persons

who are not engaging with the Collector-General’s Office in relation to their tax affairs.

A statement of affairs is a statement of the assets and liabilities of a person.

A statement of affairs can be sought from the spouse or civil partner of an individual

where that individual and his or her spouse or civil partner are jointly assessed to income

tax under section 1017 or section 1031C.

The statement of affairs must contain details relating to the market value of all assets

(including details of any charges or encumbrances on those assets) and liabilities of the

persons concerned on the specified date and their income and outgoings and must

contain in respect of each liability and each item of income or outgoings such

information as the Collector-General may specify in the prescribed form. The property

of minor children and minor children of a civil partner must be included in the statement

of affairs where those assets have previously been disposed of by that person, whether

to the minor child or not, or where the assets were acquired for the minor child with

funds provided directly or indirectly by the individual concerned. Guidelines for

calculating the cost of acquisition of an asset are included.

Trustees may be asked to provide a statement of affairs in respect of the assets and

liabilities of a trust.

The person completing the statement of affairs must also sign it and include a statutory

declaration that the statement is correct to the best of that person’s knowledge and

belief.

960S Security for certain taxes

Summary

The Revenue Commissioners may, where it appears requisite to them to do so for the

protection of the revenue, require a person in business to give a security or a further

security in relation to fiduciary taxes. It shall be on offence for a person, who is required

to provide a security, to engage in business without providing the security. A person

who is dissatisfied with a requirement to provide a security has a right of appeal to the

Appeal Commissioners against such requirement.

Details

Definitions of “business” and “tax” are provided for this section. The taxes concerned

are fiduciary taxes are tax deducted by employers under the PAYE System, Relevant

Contracts Tax (sub-contractors, etc.), universal social charge, Value Added Tax and

local property tax.

(1)

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The Revenue Commissioners may require a security where it is considered necessary

to protect fiduciary taxes due to the Exchequer. This will only apply where there is a

perceived risk that the fiduciary taxes may not be remitted.

(2)

A written notice must issue to a person where a decision to require a security has been

made.

(3)

It is an offence for person, who has been served with a written notice under subsection

(2) requiring a security, to engage in business until the required security is in place.

(4)

A right of appeal is available to a person against a decision to require that person to

provide a security.

(5)

Where a decision to require a security has been appealed, the prohibition on engaging

in business under subsection (4) will not apply until the matter is determined by the

Appeal Commissioners.

(6)

CHAPTER 2

Corporation tax

973 Collection of corporation tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

974 Priority for corporation tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

975 Application of sections 964(2), 980(8) and 981 for purposes of corporation

tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

CHAPTER 3

Capital gains tax

Overview

This Chapter contains provisions dealing with the recovery of capital gains tax from

shareholders (section 977) and from recipients of gifts (section 978). It also includes a

withholding tax on the disposal of certain assets (section 980) and makes special

arrangements for the payment of capital gains tax where an asset is acquired by

instalments (section 981).

Reference should also be made to those provisions of Chapter 5 of this Part, which can

apply to the collection of capital gains tax (in particular, the power of attachment in

section 1002).

976 Collection of capital gains tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

977 Recovery of capital gains tax from shareholder

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Summary

This section authorises the recovery from shareholders of the capital gains tax charged

on a company in respect of the disposal of assets. The section applies where the

company has made a capital distribution out of the proceeds of the disposal and has not

paid the capital gains tax charged in respect of the gain on the disposal.

Section 614 provides for a similar provision to this in the case of a company chargeable

to corporation tax in respect of a chargeable gain.

Details

Definition

“capital distribution” has the meaning set out in section 583.

(1)

Application

This section applies where a person connected with an Irish resident company receives

or is entitled to receive a capital distribution deriving from, or consisting of, a disposal

on which a chargeable gain arises to a company. The section does not apply where the

capital distribution represents a reduction in share capital.

(2)

Recovery of tax from shareholder

Where the capital gains tax due by a company is not paid within 6 months of it becoming

due, the connected person may be assessed, in the name of the company, within 2 years

of that date to an amount of tax not exceeding —

(3)

• the capital distribution which that person has received or became entitled to

receive, and

• that person’s proportionate share of the tax on the gain, at the rate in force when

the gain accrued.

Shareholder’s subsequent recovery of tax and own liability to tax

The connected person assessed to tax under this section may recover the tax paid from

the company.

(4)

This section does not affect the connected person’s own liability to tax in respect of the

capital distribution (section 583), in so far as it represents a disposal of shares.

(5)

978 Gifts: recovery of capital gains tax from donee

Summary

This section is designed to deal with the situation where a person who has given away

assets in gifts or given away in gifts the proceeds from the sale of an asset and has left

capital gains tax unpaid. The manner in which the tax is to be recouped is by charging

the amount of capital gains tax left unpaid on the donee in the name of the donor. The

charge is, therefore, separate and distinct from any charge on the donee in respect of

his/her own capital gains and the donee is given the right to recover from the donor any

amount of capital gains tax which he/she has to pay on behalf of the donor. Where the

gift is subject to the payment of the tax, the donee is debarred from recovering the tax

from the donor.

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Details

Definitions

“Old assets/new assets” have the meanings set out in section 597.

(1)

“donor” is the person transferring the gift and, in the case of an individual who has died,

includes his/her personal representatives.

“donee” is the person(s) in receipt of the gift.

“gift” refers to any transaction, other than a bargain at arm’s length, whereby an asset

is transferred (from a donor to a donee(s)) for less than full consideration (that is, less

than its full value).

Charge arising on the donee

Where a person —

• who is chargeable to capital gains tax on chargeable gains accruing on the disposal

of an asset by gift, and

• leaves any amount of capital gains tax unpaid 12 months after the tax is due,

then, the donee may be assessed (not later than 2 years after the tax charged on the

donor becomes due and payable) and charged for the tax in the name of the donor. The

donee cannot be charged any more than the lesser of —

• the tax on the amount of the gain on the disposal by gift, and

• the amount of tax remaining unpaid.

Gift of an asset “rolled-over”

Where a gift consists of an asset which replaces another asset and which was purchased

out of the proceeds of the asset replaced, then the donee may be charged to capital gains

tax in respect of the gain “rolled-over” under section 597 (that is, the deferred charged

on the “old asset”), as well as the gain on the asset given by gift (that is, the charge on

the new asset).

(3)

Amount of tax to be charged

Where the gift in question relates to the whole of the proceeds of the disposal of an asset

or, in the case of a replacement asset, the whole of the disposal of the sale of the “new

asset”, then the amount of capital gains tax assessed and charged is to be the amount

assessed and charged on the donor but left unpaid by him/her.

(4)(a)

If, however, only part of the proceeds are transferred by way of gift then the amount of

capital gains tax assessed and charged on the donee is to be the appropriate proportion

of the total charge on the donor.

(4)(b)

Recovery of tax paid by donee

Where a donee has paid capital gains tax under this section, the donee has the right to

recover that tax from the donor in a court of competent jurisdiction. Where a condition

of the transfer of an asset (or proceeds from the sale of an asset) by gift is that the donee

pay the appropriate capital gains tax, then the donee cannot recover the tax.

(5)

Where two or more donees are involved

Where gifts are made to 2 or more donees separate charges may be made on each donee

in respect of the tax left unpaid by the donor. For this purpose the tax attaching to the

asset is to be apportioned between the donees on the basis of his/her proportion of the

gift.

(6)

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979 Time for payment of capital gains tax assessed under section 977(3) or

978(2) and (3)

Capital gains tax assessed and charged on —

• a shareholder under section 977, and

• a donee under section 978,

is payable —

• within 2 months of the notice of assessment, or

• 3 months after the end of the year of assessment in which the gain accrued,

whichever is the later.

980 Deduction from consideration on disposal of certain assets

Summary

This section provides for the deduction of an amount in respect of capital gains tax from

the purchase price of certain specified assets by the purchaser (referred to as

“withholding tax”) where a tax clearance certificate is not provided. The amount to be

deducted is equal to 15 per cent of the purchase price. The purchaser is required to pay

the amount deducted to the Collector-General and is also required to forward

information relating to the acquisition of the asset to the Revenue Commissioners. The

vendor of the asset is entitled to set off the amount deducted against any capital gains

tax due on the disposal. Where a deduction cannot be made from the purchase price

because the consideration is in non-monetary form, the purchaser is still required to pay

a 15 per cent withholding tax to the Revenue Commissioners which is recoverable by

the purchaser from the vendor under this section. Where the vendor produces a tax

clearance certificate from an inspector, the vendor is entitled to obtain payment in full.

Either the vendor or his/her agent may apply to the inspector for a tax clearance

certificate.

The enforcement of a debt security by the National Asset Management Agency

(NAMA) or by a 75% subsidiary of NAMA does not constitute consideration for the

purposes of the section nor will it be treated as a disposal of an asset.

The production of a current tax clearance certificate already issued to a builder of a new

house is sufficient authority to remove the requirement to withhold tax under the section

on payment to the builder for the land on which the new house is being, or has been,

built.

This section also applies where a capital sum derives from an asset. Even though the

person paying the capital sum does not acquire the asset, for the purposes of this section

they are treated as purchasing the asset for a price equal to the capital sum.

This section does not apply where the value of the asset disposed of does not exceed

€500,000 or €1,000,000 in the case of a house or apartment, where a capital sum derives

from a settlement under an insurance policy, or where the vendor is a body specified in

Schedule 15. Neither does it apply to a disposal by NAMA or by a 51% subsidiary of

NAMA.

The person making the disposal shall provide certain details relating to an asset acquired

by way of gift or inheritance if the form on which the application so requires.

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Details

Definitions

“designated area” is an area designated by an order under section 2 of the Continental

Shelf Act, 1968.

(1)

“exploration or exploitation rights” is a right to assets generated from activities relating

to exploration or exploitation of the sea bed and its natural resources in designated areas.

“shares” include stock and any security.

“house” includes any building/part of a building used or suitable for use as a dwelling,

and any out office, yard, garden or other land pertaining to or usually enjoyed with that

building/part of a building.

(4)(c)

“new house” means a house which has been developed/is being developed by or on

behalf of the vendor but which has not been used at any time before its disposal.

Application

This section applies to assets which are —

(2)

• land in the State,

• minerals in the State or any mineral or mining rights,

• exploration or exploitation rights in a designated area,

• unquoted shares deriving their value from any of the above assets - artificial

arrangements involving the transfer of money or other assets so that the value of

the shares is derived from those assets are ignored for the purposes of valuing the

shares, where the motive for the transfer of assets is the avoidance of tax.

(3B)

• unquoted shares deriving their value from the above assets acquired on a share-

for-share basis on a reorganisation or reduction of share capital, and

• goodwill of a trade carried on in the State.

The section does not apply where the value of the asset disposed of does not exceed

€500,000 or €1,000,000 in the case of a house or apartment. If, however, in order to

avoid the application of the section, an asset exceeding this value is sold in parts (to the

same person or connected persons), then those disposals are to be treated as one

disposal.

(3)

Neither does the section apply where the asset vendor is a body specified in Schedule

15, as those bodies are exempt from capital gains tax by virtue of section 610.

(3A)

Withholding tax

Where an asset to which this section applies is being acquired —

(4)(a)

• the purchaser must deduct an amount equal to 15 per cent of the payment for

capital gains tax,

• the vendor must allow this deduction, and

• the purchaser, on proof of payment of the deduction to the Revenue

Commissioners, is treated as having paid over the total of the sum actually paid

over and the amount so deducted in consideration for the asset.

The production by the vendor of a certificate issued under subsection (8) or, where the

asset being sold is land on which a new house has been built or is in the course of being

built, the production of either that certificate or one of the certificates listed in

subsection (8A) is sufficient authority to remove the obligation on the purchaser to

withhold tax from the consideration. Where one of these certificates is to be used it must

(4)(b)

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have been issued to the vendor or, in the case of a certificate issued under subsection

(8), to either the vendor or his/her agent.

Assessment

Where the purchaser has made a payment to the vendor for the acquisition of an asset

to which this section applies and in respect of which the withholding tax has been

applied, he/she has 30 days from the date of the payment to —

(5)

• deliver to the Revenue Commissioners an account of the payment and of the

amount deducted and retained from the payment, and

• pay to the Collector-General an amount of capital gains tax equal to 15 per cent

of the amount paid to the vendor for the acquisition of the asset.

An amount of capital gains tax which has become payable to the Collector-General as

a result of subsection (5) shall be —

(5A)

• payable by the purchaser in addition to any other capital gains tax for which

he/she is liable,

• due within 30 days of the time the purchaser pays the vendor for the acquisition

of the asset, and

• payable by the purchaser without the making of an assessment.

However, tax which has become due may be assessed on the purchaser if that tax or any

part of that tax is not paid on or before the due date.

Where the purchaser fails to deliver an account or where the inspector feels that the

account is unsatisfactory the inspector may make an estimated assessment to the best

of his/her judgement on the purchaser.

(6)

Credit for withholding tax

In computing the total capital gains tax liability of the vendor in respect of a disposal

under this section, where an amount of capital gains tax which has become payable by

the purchaser to the Collector-General has been paid, the vendor will be credited with

that amount of tax on making a claim for such credit.

(7)

Tax clearance certificate

A vendor or another person acting under their authority (in this section referred to as an

“agent” (e.g. a solicitor or a tax practitioner)) may apply to the inspector for a tax

clearance certificate. Where the inspector is satisfied that the person making the

application is either the vendor or the vendor’s agent and that any one of the following

conditions are satisfied —

(8)

• that the vendor is resident in the State,

• that no capital gains tax is due on the disposal, or

• that the vendor has already paid the capital gains tax due on the disposal of the

asset and any previous disposals of the asset,

the inspector will issue a certificate to the vendor or agent and a copy of the certificate

to the purchaser. This enables the purchaser to be relieved of his/her obligation to deduct

the withholding tax. If the application is made by an agent, it must include the name

and address of the vendor and, if the vendor is resident in the State, the vendor’s tax

reference number (within the meaning of section 885).

The certificates referred to in subsection (4)(b) (other than a certificate issued under

subsection (8)) (see also notes below on subsection (8A)(c)) are:

(8A)(a)

• A valid certificate of authorisation issued under section 531,

• A valid tax clearance certificate issued under section 1094,

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• A valid tax clearance certificate issued under section 1095, or

• If a person has none of these certificates, the certificate provided for in paragraph

(b) of this subsection.

A tax clearance certificate may be issued specifically where the asset being disposed of

is land on which a new house has been built or is in the course of being built and where

the vendor does not already have either a certificate of authorisation under section 531

or a tax clearance certificate under section 1094 or 1095. This tax clearance certificate

is issued on the same basis as a tax clearance certificate is issued for the purposes of

section 1095.

(8A)(b)

A notification issued, within the previous 12 months, by the Revenue Commissioners

under section 530I that the named person is a person to whom section 530G (i.e. a zero

rate subcontractor) applies shall be treated as a certificate for the purposes of this

subsection.

(8A)(c)

Application of subsection (8) to corporation tax

Subsection (8) applies to corporation tax as it applies to capital gains tax and references

to capital gains tax in that subsection apply as if they included references to corporation

tax.

(8B)

Procedure where consideration is in a non-monetary form

Special procedures apply in the case of an asset acquired after the 2nd of June 1995,

which is an asset to which this section applies (and section 978 does not apply), where

the consideration for the asset is such that a deduction cannot be made from it (for

example an asset swap or a purchase with shares), and where the vendor does not

produce a clearance certificate. Where these circumstances obtain the purchaser must,

within 7 days of the acquisition —

(9)(a)

• notify the Revenue Commissioners of the acquisition, setting out the asset

acquired, the consideration paid, the estimated market value of the asset and the

name and address of the vendor, and

• pay the Collector-General 15 per cent of the estimated market value.

Where, by virtue of these requirements capital gains tax is payable by the purchaser,

that capital gains tax —

(9)(b)

• is payable in addition to any other capital gains tax liabilities that person may

have,

• is due within 7 days of the acquisition, and

• is payable without an assessment being made.

Where such payment is not made it may be assessed on the purchaser.

Where a purchaser has so paid an amount of capital gains tax, he/she is entitled to

recover a sum of that amount from the vendor as a simple contract debt from a court of

competent jurisdiction. However, if the vendor (or his/her agent) has now obtained a

clearance certificate issued under subsection (8), the purchaser is not entitled to recover

the sum from the vendor but is entitled to be repaid the tax so paid.

(9)(c)

Where an asset is acquired by 2 or more persons, then each person is to be assessed and

charged in proportion to the amount of the asset they acquired.

(9)(d)

Where a purchaser has so paid an amount of capital gains tax and recovered a sum of

that amount from the vendor, the Revenue Commissioners will, on receiving proof to

that effect, allow a credit to the vendor for the tax paid by the purchaser in determining

the total capital gains tax liability of the vendor in respect of the disposal.

(9)(e)

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Due date for tax

This subsection, which provided that an assessment to withholding tax was due and

payable the day after the assessment is made, has been repealed by section 56 of the

Finance Act 2007.

(10)

Capital sums deriving their value from an asset

Certain disposals of assets do not necessarily involve the acquisition of assets (for

example, the redemption of loan notes by the issuing company involves the disposal,

but not the acquisition, of assets). In order to ensure that this section applies to the

disposal rather than the acquisition of assets provision is made such that where a capital

sum derives from an asset, the person paying that capital sum is deemed to have

acquired the asset for a consideration equal to the capital sum.

(11)

This does not apply to a capital sum which is a settlement under an insurance policy.

The enforcement of a debt security by NAMA or by a company which is a 75%

subsidiary of NAMA does not constitute consideration for the purposes of this section.

(12)

Subsection (9) does not apply to NAMA or to a 75% subsidiary of NAMA.

(13)

This section does not apply to a disposal by a company that would be a company to

which section 616(1)(g) relates if the reference in that section to a 75% subsidiary were

a reference to a 51% subsidiary.

(14)

For the purposes of this section, the enforcement of a debt security by NAMA or by a

75% subsidiary of NAMA will not be treated as a disposal of an asset.

(15)

In the case of a disposal to which this section applies, the person who is making the

disposal shall provide details (if applicable) on an application being made for a

clearance certificate if the form on which the application is made so requires for a

certificate referred to in subsection (8) relating to —

(16)

• whether or not the asset being disposed of was acquired by way of gift or

inheritance,

• the market value of the asset at the date it was so acquired, and

• whether or not gift tax or inheritance tax was paid in respect of the asset.

981 Payment by instalments where consideration due after time of disposal

Where the whole or part of the consideration taken into account in computing a

chargeable gain is payable by instalments over a period which exceeds 18 months, the

Revenue Commissioners may allow payment of the tax charged on the gain to be spread

over a period not exceeding 5 years and not later than the date when the last instalment

is due. The taxpayer must satisfy the Revenue Commissioners that payment of the tax

in the normal way would cause undue hardship.

982 Preferential payment

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

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CHAPTER 4

Collection and recovery of income tax on

certain emoluments (PAYE System)

Overview

This Chapter provides for the collection and recovery of income tax under the PAYE

system.

Reference should also be made to section 903 which provides authorised officers of the

Revenue Commissioners with powers of inspection (including entry and search of

premises) in connection with the PAYE system.

983 Interpretation (Chapter 4)

This section defines a number of terms which are used throughout this Chapter and

apply from 1 January 2019 —

“due date” in relation to an income tax month means,

(a) 15* days from the last day of the income tax month (i.e. 14th of the

following month),

(b) 24* days from the last day of the income tax month (i.e. 23rd of the

following month), where –

➢ the return and the remittance are made by electronic means, and

➢ the return and the remittance are made on or before the 23rd of the

month.

“emoluments” is defined comprehensively so as to include anything which is assessable

under Schedule E and, since references to payments of emoluments include references

to payments on account of emoluments, salaries or wages advances are also included.

“employee” is any person who receives emoluments.

“employer” is any person who pays emoluments.

“income tax month” means a calendar month.

“reliefs from income tax” means allowances, deductions and tax credits.

“tax credits” means personal tax credits and general tax credits.

* Under the Interpretation Act 2005, the last day of the month is included in the count

meaning that the due date is either the 14

or the 23

day of the month.

“electronic means” has the same meaning as in section 917EA(1).

“ reportable benefit” has the same meaning as it has in section 897C.

“return date” in relation to an income tax month means 15 days from the last day of the

income tax month. As this includes the last day of the previous month, the return date

is actually the 14

of the month. See Section 985G for Return by Employer.

“revenue payroll notification” means a notification issued by Revenue to an employer

setting out information necessary to calculate any income tax due for an employee. It

replaces the Tax Credit Certificate from 1 January 2019.

“technology systems failure” means circumstances in which:

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

(a) Revenue’s electronic system is not functioning properly and resulting in an

employer being unable to comply with his or her obligations to deduct and remit

income tax due, or,

(b) a person is unable to use Revenue’s electronic system because of a systems

failure of an internet service provider, or of an electricity service provider

occurring in the general locality of, or affecting the person’s place of business.

984 Application

This section applies the PAYE provisions to all emoluments except emoluments where

the operation of PAYE is impracticable and in respect of which the inspector has issued

an exclusion order to the employer.

(1)

Following the commencement of a Ministerial Order, Sections 984A, 985G(2)(d), 986

and 987 of Chapter 4 shall apply to require reporting through the PAYE system of

reportable benefits. These sections will not apply for reportable benefits to an employee

for whom a PAYE Exclusion Order has been issued.

(1A)

The inspector may cancel the exclusion order if a change of circumstances arises in the

office or employment.

(2)

Exclusion orders issued before 6 April, 1986 are ineffective for the year 1997–98 and

subsequent years of assessment.

(3)

984A Electronic system

Introduction

This section provides that with effect from 1 January 2019, any data required under the

PAYE system of tax deduction, from Revenue or from an employer, must be made by

electronic means. However, there are certain exceptions to this rule.

Details

Any return, statement, notification, instruction, information, declaration or claim,

required under the PAYE system of tax deduction shall be made by electronic means,

but not where the following apply:-

(1)

an employer that has been excluded by Revenue under Section 917EA from the

obligation to use electronic means,

(2)(a)

a PAYE exclusion order exists, or

(2)(b)

a direction has issued under Sections 985E or 985F

(2)(c)

984B Liability for payment of deduction

This section provides that any employer, who is required to operate PAYE, is liable to

pay the tax to Revenue regardless of whether or not the tax was deducted from the

employee. In addition, where a repayment of income tax has been made to an employee,

the employer is entitled to repayment of that tax by Revenue (subject to time limits

specified in subsections (6A) and (6B) of section 985G).

985 Method of collection

This section provides that when paying emoluments which are subject to the PAYE

system an employer must, in accordance with the regulations made under this Chapter,

deduct or repay income tax, as appropriate, even though no assessment has been made

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in respect of the emoluments and the emoluments may be for some year of assessment

other than the year in which they are paid.

985A Application of section 985 to certain perquisites etc.

Summary

This section provides for the direct application of PAYE to emoluments in the form of

benefits such as perquisites and profits whatever chargeable to tax under section 112,

expenses incurred in the provision of benefits which are treated as perquisites (i.e.

BIKs), the benefit arising from a preferential loan, the benefit of the private use of

company cars and vans, and gains realised by an employee or director on or after 1

January 2024 from the exercise, assignment or release of rights chargeable to tax under

section 128.

Employers are to deduct the appropriate income tax in respect of those benefits from

cash remuneration being paid to the employee at the same time the benefit is provided.

Where the cash remuneration of an employee is insufficient to meet the tax liability,

the employer will be responsible for any shortfall in the amount of tax due. Where an

employee does not make good the shortfall to the employer by the end of the tax year,

the tax borne by the employer will be treated as a taxable benefit of the employee in

the following tax year and subject to PAYE in the same way as the original benefit.

Details

Application

The section applies to emoluments in the form of—

(1)

• perquisites and profits whatever chargeable to tax under section 112 including —

— an expense incurred by an employer in the provision of a benefit for an

employee which is treated as a perquisite for the purposes of section 112

by virtue of section 118,

— the benefit arising from a preferential loan chargeable to tax by virtue of

section 122,

— a perquisite to which section 112A or 112AA applies.

• the benefit of the private use of a car chargeable to tax by virtue of section 121,

• the benefit of the private use of a van chargeable to tax by virtue of section 121A.

• a gain realised by an employee or director from the exercise, the assignment or

the release of a right to acquire shares or other assets which is chargeable to tax

by virtue of section 128.

Exclusion (this provision applies from 25 March 2004)

Subject to subsection (1B), the section does not apply to emoluments in the form of

shares (including stock) received by employees, being shares in the employer company

or in a company controlling the employer company. Employees in receipt of shares

accounted for income tax under self-assessment instead of PAYE. All other shares

given by employers to employees are liable to PAYE.

(1A)

The section applies to emoluments in the form of shares (including stock) received by

employees, being shares in the employer company or in a company controlling the

employer company, where those shares are received on or after 1 January 2011.

Emoluments in the form of shares are now dealt with on the same basis as other types

of perquisites and benefits-in-kind.

(1B)

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For the purposes of this Chapter and regulations under it the employer is to be treated

as having made a “notional payment” (as determined under subsection (3)) in respect

of the emoluments to which this section applies.

(2)

The “notional payment” is the amount which, on the basis of the best estimate that can

reasonably be made, is the amount of income likely to be chargeable to tax under

Schedule E in respect of the emolument. In the case of gains realised on or after 1

January 2024 which are chargeable to tax under section 128, the “notional payment”

amount is calculated by reference to the provisions of section 128(4).

(3)

Where by reason of an insufficiency of payments actually made to an employee, the

employer is unable to deduct the amount of income tax due, the employer will be liable

to remit to the Collector-General the amount of tax that the employer is required but

unable to deduct.

(4)

Where an employer pays the BIK tax charge in respect of a benefit provided to an

employee (because the employee has insufficient income from which the tax could be

deducted) the tax paid is credited to the employee.

(4A)

Where an employer makes notional payments to employees in the form of shares, he or

she is obliged to account for income tax on the value of those shares or, in the case of

notional payments chargeable to tax under section 128, on the gain realised and

calculated as per section 128(4). An employer is entitled to withhold sufficient shares

to fund that income tax liability where the employee does not otherwise provide the

employer with sufficient means to do so. Even though the employee has not actually

received the shares, he or she is treated as if the value of the shares had been paid by

the employer.

(4B)

In any case where —

(5)

(a) an employee receives an emolument of this section,

(b) the employer is required to remit the tax due in respect of the emolument, and

due amount to the employer,

the due amount shall be treated as an emolument of this section and charged to tax in

the next following year of assessment.

The Revenue Commissioners may make regulations to make provision with respect to

the deduction, collection and recovery of amounts to be accounted for in respect of

notional payments and for applying any specified provisions of existing regulations to

deductions from actual payments to amounts to be accounted for in respect of any

notional payments. Such regulations may, without prejudice be cancelled within 21

sitting days of Dáil Éireann.

(6) & (7)

985B PAYE Settlement agreements

Summary

This section provides that the Revenue Commissioners may make arrangements with

employers whereby the employers will themselves pay to the Revenue Commissioners,

the tax payable in respect of benefits provided to employees which are minor and

irregular rather than deducting the tax from the earnings of the employees and

accounting for it through the normal PAYE system. Where the employer so accounts

for the tax, the benefits will not form part of the total income of the employees and they

will not be entitled to credit for or repayment of the tax accounted for.

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Details

Definitions

“qualifying emoluments” means emoluments other than emoluments in the form of a

payment of money, which are —

(1)

(a) minor, as regards the amount or type of emolument involved, and

(b) irregular, as to the frequency in which or the times at which, the emoluments are

provided.

On application by an employer, the Revenue Commissioners may enter into an

agreement with the employer to account directly to them in respect of income tax on

qualifying emoluments of one or more employees of the employer which would

otherwise have to be accounted for through the normal PAYE system.

(2)

Where the employer accounts for the tax under such an agreement —

• the employer shall not be liable to account for tax under the PAYE system,

3(a)

• qualifying emoluments will not be treated as income of any employee,

3(b)

• the tax accounted for shall not be treated as deducted under the PAYE system

3(c)

• an employee will not be treated as having paid any part of the income tax and

shall not be entitled to a credit or claim repayment of any part of the tax, and

3(d)

• qualifying emoluments shall not be included by the employee in the annual return.

3(e)

The amount of tax to be accounted for by the employer —

(4) & (5)

(a) is to be determined by reference to —

• the aggregate amount of the benefits in the agreement on which income tax

is payable,

• the total number of employees in receipt of the benefits,

• the number of employees liable to tax at —

- the standard rate for the tax year to which the agreement relates, and

- both standard and higher rates for that year, and

• any other relevant details in relation to the agreement.

And

(b) is to be comprised of —

• the amount of tax on the aggregate of taxable benefits, calculated by taking

account of the number of employees on the standard rate and those on both

the standard and higher rates for the tax year, and

• a further amount to reflect the tax which would have been payable by the

employee had he or she not received a tax-free benefit from the employer.

An application by an employer to enter into a PAYE settlement agreement must be

received by the Revenue Commissioners on or before 31 December in the tax year to

which the agreement applies.

(6)

If the tax due under an agreement is not paid to the Collector-General within 23 days of

the end of the tax year to which the agreement applies, the agreement becomes null and

void and the remaining provisions of the Chapter (PAYE system) and regulations

thereunder shall apply.

(7)

Any officer acting under the authority of the Revenue Commissioners may perform or

discharge any action authorised by this section.

(8)

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985C PAYE Payment by Intermediary

Summary

Section 985C provides that, where payments of emoluments are made by an

intermediary on behalf of an employer, the employer is to be treated for the purposes of

the PAYE regulations as having made the payment if the intermediary does not operate

PAYE. If the employee is entitled to a net sum free of tax, the liability to be accounted

for by the employer is to be calculated by reference to the grossed-up amount.

Details

Where an intermediary of the employer makes any payment of emoluments of an

employee, the employer is to be treated, for the purposes of the PAYE scheme, as

making a payment of emoluments of an amount equal to the amount referred to below.

(1)

The section does not apply, however, if the intermediary deducts income tax from the

payment to the employee and accounts for it in accordance with the PAYE scheme.

(2)

The amount on which the employer is to operate PAYE is the amount paid by the

intermediary to the employee, grossed up if the payment is an “after tax” payment

(3)

A payment of emoluments of an employee is made by an intermediary of the employer

if it is made —

(4)

• by a person acting on behalf of the employer and at the expense of the employer

or a person connected (within the meaning of section 10) with the employer, or

• by trustees holding property for any persons who include, or class of persons

which includes, the employee.

985D PAYE Non-resident employer

Summary

Where PAYE is not operated by or on behalf of a non-resident employer in respect of

an employee who works in the State for another person, the person in the State will be

responsible for the operation of PAYE.

Details

For the purposes of section and sections 985E and 985F, “work”, in relation to an

employee, means the performance of any duties of the office or employment of the

employee and any reference to the employee working is to be construed accordingly.

(1)

The section applies where —

(2)

• an employee, during any period, works for a person (the “relevant person”) who

is not the employee’s employer,

• any payment of emoluments of the employee in respect of work done in that

period is made by a person who is the employer or an intermediary of the

employer or of the relevant person,

• the person making the payment or, if that person makes the payment as an

intermediary of the employer or of the relevant person, the employer is not

resident in the State, and

• income tax is not deducted or accounted for under PAYE, by the person making

the payment or, if that person makes the payment as an intermediary of the

employer or of the relevant person, the employer.

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Where the circumstances set out above apply, the relevant person is to be treated, for

the purposes of PAYE, as making a payment of emoluments of the employee of an

amount equal to the amount referred to below.

(3)

The amount on which the relevant person is to operate PAYE is the amount paid by the

intermediary to the employee, grossed-up if the payment is an “after tax” payment

(4)

The section applies to notional payments that an employer is treated as having made

under section 985A.

(5)

A payment of emoluments of an employee is made by an intermediary of the employer

if it is made —

(6)

• by a person acting on behalf of the employer and at the expense of the employer

or a person connected (within the meaning of section 10) with the employer, or

• by trustees holding property for any persons who include, or class of persons

which includes, the employee.

985E PAYE Employment not wholly exercised in the State

Summary

Section 985E deals with the case where —

• an employee carries out his or her duties both in the State and outside the State,

and

• only part of the employee’s earnings is chargeable to under Sch. E, being

emoluments in respect of the performance in the State of duties of the

employment.

In such a case, where the amount of the employee’s pay which is not chargeable under

Schedule E is unknown, an officer of the Revenue Commissioners may, on application

by, or on behalf of, the employer, give a direction as to the proportion of pay on which

PAYE is to be operated. In the absence of a direction, the employer must operate PAYE

on the whole amount.

Details

“appropriate person” means the person designated by the employer for the purposes of

this section, and if no person is so designated, the employer.

(1)(a)

Any reference to a payment made by the employer includes a reference to a payment

made by a person acting on behalf of the employer and at the expense of the employer

or a person connected (within the meaning of section 10) with the employer.

(1)(b)

The section applies in relation to an employee in a year of assessment only if the

employee works or will work in the State and also works or is likely to work outside

the State.

(2)

Where in relation to any year of assessment it appears to an officer of the Revenue

Commissioners that —

(3)

• some of the income of an employee to whom the section applies is assessable to

income tax under Schedule E, but

• an as yet unascertainable proportion of the income may prove not to be so

assessable

then the officer may, on an application made by the appropriate person, give a direction

for determining a proportion of any payment made in that year of, or on account of,

income of the employee, which is to be treated for the purposes of PAYE as a payment

of emoluments of the employee.

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An application for a direction is to provide such information as is available and is

relevant to the giving of the direction.

(4)

A direction is —

(5)

• to specify the employee to whom and the year of assessment to which it relates,

• to be given by notice to the appropriate person, and

• may be withdrawn by notice to the appropriate person from a date specified in the

notice.

A direction may not be withdrawn earlier than 30 days from the date of issue of the

notice of withdrawal

(6)

Where a direction has effect then the proportion of the payment determined in

accordance with the direction is to be treated for the purposes of PAYE as a payment

of emoluments of the employee.

(7)

Where in any year of assessment no direction has effect in relation to an employee to

whom this section applies then the entirety of any payment made of, or on account of,

the income of the employee is to be treated for the purposes of PAYE as a payment of

emoluments of the employee.

(8)

The provisions of the section are without prejudice to —

(9)

• any assessment in respect of the income of the employee in question, and

• any right to repayment of income tax overpaid and any obligation to pay income

tax underpaid.

Where section 985D applies —

(10)

• references to the employer in this section include references to the relevant person

(within the meaning of that section), and

• any reference to a payment made by the employer includes a reference to a

payment treated, for the purposes of PAYE, as made by the relevant person.

985F PAYE Mobile workers

Summary

Section 985E enables the Revenue Commissioners to issue a direction that any payment

made by a third party to an employer, for the work done for the third party by employees

of the employer, is to be paid under deduction of tax if it is likely that the employer will

not operate PAYE in respect of emoluments paid to the employees.

Details

The section applies where it appears to the Revenue Commissioners that —

(1)

• a person the “relevant person”) has entered into or is likely to enter into an

agreement that employees of another person (the “contractor”) will in any period

work for, but not as employees of, the relevant person,

• payments of emoluments of the employees in respect of work done in that period

are likely to be made by or on behalf of the contractor, and

• PAYE applies to such payments but it is likely that it will not be applied.

Where this section applies, the Revenue Commissioners may give a direction that if —

(2)

• any employees of the contractor work in any period for, but not as employees of,

the relevant person, and

• any payment is made by the relevant person in respect of work done by the

employees in that period,

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income tax is to be deducted in accordance with this section by the relevant person on

making that payment.

A direction —

(3)

• is to specify the relevant person and the contractor to whom it relates,

• is to be given by notice to the relevant person, and

• may at any time be withdrawn by notice to the relevant person.

The Revenue Commissioners are to take such steps as are reasonably practicable to

ensure that the contractor is supplied with a copy of any notice given which relates to

the contractor.

(4)

Where a direction has effect and any employees of the contractor specified in the

direction work for, but not as employees of, the relevant person so specified, income

tax is to be deducted under PAYE by the relevant person on making any payment in

respect of that work as if so much of the payment as is attributable to work done by

each employee were a payment of emoluments.

(5)

985G Return by employer

Summary

This section provides that with effect from 1 January 2019, all employers are required

to submit payroll data to Revenue on or before the making of a payment of emoluments

to an employee. The data is to be submitted through a payroll submission. This payroll

data will be used by Revenue to generate a monthly statement of the tax due by the

employer. If the statement is correct, the employer may accept it at any time prior to the

return filing date (14

of the following month), and it will become his or her return for

the month. If the employer does nothing, the statement will be deemed to be a return on

the return filing date.

If the statement does not reflect the correct position, the employer must correct the

payroll submission data to ensure that the statement reflects the correct liability by the

return filing date.

If there are no payroll submissions from an employer for a month, and a statement is

not issued by Revenue, the employer still has an obligation to make a return i.e. a NIL

return, regardless of the fact that there may have been no payment of emoluments for

the month.

If the employer makes corrections for a month after the 14

of the following month, an

amended statement will issue from Revenue and the amended statement will be deemed

a return when issued

A return includes a return deemed to have been made under subsection (4).

(1)

Either before or at the time of the payment of any emoluments or the provision of any

reportable benefits, the employer must provide Revenue with the following information

for each employee:

(a) amount of the emoluments,

(b) date of payment of the emoluments,

(d) other information required by the PAYE regulations.

The requirement in regard to the provision of any reportable benefits is subject to the

commencement of a Ministerial Order.

(2)

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On or before the return date (i.e. the 14th of the month), an employer must make a return

to Revenue specifying the total PAYE deducted or repaid for the month and,

(3)(a)

on or before the due date (i.e. either the 14

or the 23

of the month), an employer must

pay the Collector General the tax due for that month.

(3)(b)

Where an employer receives a statement from Revenue setting out the total amount of

tax deducted or repaid by the employer for an income tax month, this statement will be

deemed to be a return made by the employer on the return date, or on the date of issue

of the statement if the statement is issued after the return date.

(4)

Where an employer receives a statement from Revenue setting out the total amount of

tax deducted or repaid by the employer for an income tax month, but the statement is

not correct, i.e. it does not accurately reflect all payments of emoluments by the

employee of the full liability of the employer, such statement will not be deemed to be

a return made by the employer on the return date, or on the date of issue of the statement

if this is later than the return date.

(5)

Where an employer receives a statement from Revenue setting out the total amount of

tax deducted or repaid by the employer for an income tax month, but the statement is

not correct, the employer must ensure that his or her return for the month accurately

reflects the tax liability for that month.

(6)

The Collector General may, by notice to an employer, vary the due date for a month

e.g. allowing certain employers to make payments quarterly rather than monthly.

(7)

The Collector-General may withdraw a notice under subsection (7) at any time prior to

the due date.

(8)

985H Exceptional circumstances

Summary

This section applies for the year 1 January 2019 and subsequent years.

This section sets out how an employer should proceed with deduction of tax from

payroll where he or she is unable to send or receive data from Revenue due to a

persistent technology systems failure. “Technology Systems failure is defined in section

983”.

An employer is obliged to deduct tax by using the most recent revenue payroll

notification (RPN) available from Revenue for the employee. As soon as the technology

systems failure is corrected, he or she must sent Revenue full details of the emoluments

paid and tax deducted.

Where an employer is legally obliged to pay emoluments to an employee, but due to a

persistent technology systems failure, is unable to access Revenue’s electronic system

(see section 984A), or to obtain the employees most recent RPN from Revenue, the

employer must:-

(1)(a) &(b)

deduct tax using the latest RPN that the employer holds, or by applying the emergency

basis where the employer does not have a RPN for the employee, and

(i)

as soon as the technology systems failure is rectified, send Revenue full details of the

emoluments paid to the employee and tax deducted.

(ii)

Where there is a persistent technology systems failure and the employer complies with

requirements in subsection (1), the employer will be deemed to have used a valid RPN,

and deemed to have provided full details of the emoluments paid and tax deducted from

the employee in the month in which the emoluments were paid.

(2)

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Revenue may request the employer to provide information as to the circumstances and

details of a persistent technology systems failure.

(3)

986 Regulations

Summary

This section empowers the Revenue Commissioners to make regulations in respect of

the assessment, charge, collection and recovery of income tax under the PAYE

system. The Income Tax (Employments) (Consolidated) Regulations, 2018 (S.I. No.

345 of 2018), are currently in force

Details

Regulations are to be made by the Revenue Commissioners in regard to the assessment,

collection and recovery of income tax under the PAYE system. The regulations may

include provision —

(1)

• for requiring an employer on making any payment of emoluments to deduct or

repay tax based on the rate(s) of tax, allowances, deductions and reliefs which are

set out on the revenue payroll notification;

• for the inspection by the Revenue Commissioners of wages sheets and other

documents to ensure that the PAYE system is properly operated;

• for the collection and recovery of tax which has not been recovered during the

year;

• for appeals against matters in the regulations and for which there is no other

appeal procedure;

• for the deduction of tax at the standard rate and higher rate, as appropriate;

• for the reduction of emoluments by any occupational pension scheme

contributions, qualifying premiums under an approved annuity contract (RAC),

contributions to a personal retirement savings account (PRSA), contributions to a

Pan-European Personal Pension Product (PEPP) or contributions to permanent

health benefit schemes before making a deduction or repayment of tax;

• for treating some persons, who are not employers, as employers as required.

• for the collection and recovery of tax on non-PAYE income through the PAYE

system;

• for the collection of tax from the employee rather than the employer in certain

circumstances, where the employer has failed to deduct tax;

• requiring an employer to submit details of emoluments paid and tax deducted and

other relevant information to the Revenue Commissioners in such manner and

form as they may approve or prescribe;

• for requiring an employer who makes a payment to which this Chapter applies to

an employee to notify the Revenue Commissioners within a period of time

specified in the regulations.

Regulations under this section may also contain supplementary provisions deemed

necessary by the Revenue Commissioners to enable persons to fulfil their obligations

made under this section or to fulfil the proper implementation of the provisions of this

Chapter or regulations made under this section.

Subject to Ministerial Order this section is extended to provide for the making of

regulations that prescribe the reporting period, the form, and other particulars that will

apply in regard to reportable benefits.

(1A)

(1B)

The regulations made under this section apply regardless of anything in the Income Tax

Acts but taxpayers’ other rights of appeal are not affected.

(2)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Revenue payroll notifications should be prepared by the Revenue Commissioners with

a view to securing that in so far as is practicable the total estimated tax payable in respect

of emoluments for the year of assessment (after allowing a provisional deduction for

allowances and reliefs and taking into account any overcharge or undercharge for

previous years) is deducted from emoluments paid in the year.

(3)

The amounts in respect of reliefs from income tax to be stated on a revenue payroll

notification may be rounded up to a convenient greater amount. Any tax which is not

deducted for a year of assessment as a result of such rounding up may be recovered in

the following year of assessment.

(4)

The registration limits are relaxed for an employer who has only one domestic employee

employed in his/her own home. The threshold in such a case is increased to €40 a week.

(6)

If the Revenue Commissioners are satisfied that it is un- necessary or not appropriate

for an employer to comply with any of the PAYE regulations a notification to that effect

may be issued to the employer in such circumstances.

(6A)

The regulations made under this section must be laid before Dáil Éireann.

(7)

986A Payment made without deduction of income tax

Summary

This section provides for re-grossing of emoluments where an employer either does

not operate PAYE on the payment of any emoluments made to an employee or

disguises the payment of emoluments to an employee.

In such cases, the employer is liable for the tax that would have been deductible from

the employee, on the basis that the amount paid to the employee was the net amount

of emoluments after deduction of tax i.e. income tax is calculated on a re-grossed

figure.

This section applies where an employer makes a payment of emoluments to an

employee but fails to operate PAYE on any of the emoluments, or where the employer

has disguised or omitted the emoluments in its books or records. But the section does

not apply to -

(1)(i)&(ii)

• vouchers paid by the employer to an employee under Section 112B, and

(1)(a)

• emoluments which are the subject to a PAYE settlement agreement between

Revenue and the employer under Section 985B

(1)(b)

Where an employee receives emoluments without the deduction of tax and the

foregoing provisions apply, the employer is liable for the tax that would have been

deductible from the employee. The amount paid to the employee is treated as the net

amount of emoluments after deduction of tax. This amount is re-grossed, and tax is

calculated on the re-grossed figure.

(2)&(3)

987 Penalties for breach of regulations

Summary

This section provides for penalties for failure to comply with the regulations governing

the operation of the PAYE system.

Details

Where a person fails to comply with the following requirements:-

(1)(a) to (d)

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• send a return, statement, notification or certificate, or

• remit tax to the Collector-General, or

• make deduction or repayment, or

• keep and maintain a register of employees,

the person is liable to a penalty of €4,000.

Where the person who fails to comply with subsection (1) is a body of persons, the

secretary of that body is liable to a separate penalty of €3,000.

(2)

In proceedings for the recovery of a penalty, a certificate signed by an officer of the

Revenue Commissioners stating that, on the basis of inspection of the relevant records

of the Revenue Commissioners —

(4)

• a return, statement, notification or certificate was not received from the defendant,

• wages sheets or other records or documents were not produced by the defendant,

• the defendant had not remitted tax to the Collector-General,

• the defendant did not make a deduction or repayment of tax, or

• the defendant was an employer,

is evidence of those facts until the contrary is proved. Any such certificate may be

tendered in evidence without proof and is deemed to have been signed by the officer of

the Revenue Commissioners until the contrary is proved.

988 Registration of certain persons as employers and requirement to send

certain notifications

Summary

The Revenue Commissioners may register a person as an employer if they have reason

to believe that the person is an employer and has not registered as such. The Revenue

Commissioners must notify the person of the registration. The person has the right to

appeal to the Appeal Commissioners against the registration and their decision on the

matter is final and conclusive.

Details

The Revenue Commissioners may register a person as an employer where they have

reason to believe that the person is an employer but has not sent the required notification

to the Revenue Commissioners. They must issue a notice to the person informing the

person of the registration.

(1)

The person has a right to appeal against the registration to the Appeal Commissioners

within 14 days after the date of the notification. The decision of the Appeal

Commissioners on the matter is final and conclusive.

(2)(a)

If no appeal is made the person is regarded as an employer.

(2)(b)

If the Appeal Commissioners find in favour of the person, the Revenue Commissioners

must delete the person’s name from the register of employers.

(2)(c)

If an employer is not liable to remit tax to the Collector-General at the end of a tax

month, the employer must, within 9 days of the end of that month, forward a nil return

to the Collector-General.

(3)(a)

If a person ceases to pay emoluments to which this Chapter applies, the person must

notify the Revenue Commissioners to that effect within 14 days of ceasing to pay such

emoluments.

(3)(b)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

The provisions of section 987 (penalties for breaches of regulations) apply to failures

to comply with the provisions of subsection (3) in the same way they apply to breaches

of the regulations made under this Chapter. Thus, a penalty of €1,520 applies in relation

to such a failure while, in the case of such a failure by a body of persons, a separate

penalty of €950 applies to the secretary of the body.

(4)

988A Register of employees

Summary

This section provides that an employer who makes a payment of emoluments to an

employee(s) must keep and maintain an employee register for that year.

Details

An employer, who in any year, makes a payment of emoluments to an employee(s) must

keep and maintain a register. This is known as ‘Register of Employees’.

(1)

The register must include, for each employee, the employee’s name, address, PPSN,

and date of commencement/cessation of the employment.

(2)

An employer must keep and maintain the register (or a copy of it), either at the normal

place of employment of the employee(s), or at the main business of the employer, and

(3)(a)

produce the register, or an extract therefrom (or a certified copy) to a Revenue officer

if requested to do so.

(3)(b)

The Register of Employees can be kept in electronic format.

(4)

989 Estimation of tax due for income tax months

Summary

The Revenue Commissioners may serve a notice on an employer of the estimated tax

due under PAYE where the employer has not made any payment for an income tax

month. An employer who claims to be not liable to remit any tax for the income tax

month referred to in the notice may appeal to the Appeal Commissioners whose

decision on the matter is final and conclusive. Where an estimated amount is paid and

a return showing the correct liability is not submitted, or if the Revenue Commissioners

have reason to believe that the original estimate was too low, an additional estimate can

be raised on the employer.

Details

In this section and in sections 990 and 991 the regulations referred to are the PAYE

Regulations made under section 986.

(1)

The Revenue Commissioners may estimate the amount of tax due by an employer

whom they believe is liable to remit income tax for an income tax month and who has

failed to do so and they may serve a notice of this estimated tax on the employer.

(2)

Where a notice of the estimated tax due is served on an employer who claims to be not

liable to remit any tax for the income tax month referred to in the notice, the employer

may, within 14 days after the date of the notice, appeal to the Appeal Commissioners

whose decision on the matter is final and conclusive.

(3)(a)

If no appeal is made or if the Appeal Commissioners find against the employer, the

estimated tax is properly due and payable.

(3)(b)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

If an employer, after the service of a notice of an estimate of the tax due, forwards a

declaration of the tax due for the income tax month and pays that tax together with any

interest and costs incurred, the notice of the estimated tax is to be cancelled and any

excess tax paid will be refunded.

(3)(c)

However, if an action for recovery of the tax specified in the notice has started (namely,

by court proceedings or by referral to the sheriff or county registrar), then, unless the

Revenue Commissioners direct otherwise, the notice of the estimated tax is not to be

cancelled until the recovery action is completed.

(3)(d)

Where the tax estimated in the notice is paid and a return showing the actual liability is

not submitted, or where the Revenue Commissioners have information to indicate that

the original estimate was too low, an increased estimate may be made and served on the

employer and the new estimate will supersede any previous one.

(3)(e)

A notice of the estimated tax due by an employer issued under this section may cover 2

or more consecutive income tax months.

(4)

The Revenue Commissioners may nominate any of their officers to carry out the

functions and duties of the Revenue Commissioners authorised under this section.

(5)

990 Assessment of tax due

Summary

This section provides that where an inspector or other officer of the Revenue

Commissioner has reason to believe that an employer has overpaid or underpaid the tax

due to be paid by the employer under the PAYE system for any month, the inspector or

other officer may make an assessment of the total amount of the tax so due by the

employer. An appeal to the Appeal Commissioners against any such assessment may

be made by the employer. Where an amount is paid by the employer and the inspector

or other officer of the Revenue Commissioners has reason to believe that the original

assessment is less than or greater than the amount of tax that the employer is liable to

remit, the inspector can increase or decrease the assessment to reflect the correct amount

of tax due to be remitted by the employer for that month.

Details

Subsection (1) provides that where an inspector or other officer of the Revenue

Commissioners has reason to believe that a return made by an employer does not

include the total amount of tax due for a month, or, where a return is due but has not

been submitted by an employer, then, the inspector or other officer may make an

assessment of the amount which should have been paid by the employer, and may serve

a notice on the employer setting out:

(1)

• the amount so assessed,

• the amount paid by the employer in respect of the income tax month, and

• the balance of tax outstanding.

Subsection (2) provides that where the inspector or other officer is of the view that the

amount of their assessment is less than or greater than the amount of tax that the

employer is due to remit, then the inspector can increase or decrease the assessment to

reflect the correct amount of tax due to be remitted by the employer for that month.

(2)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Revenue will issue a revised notice to the employer, and this notice will supersede the

previous notice.

Subsection (3) provides that where Revenue serve a notice on the employer under

subsections (a) or (b), the employer may appeal the notice to the Appeal Commissioner

within 30 days after the date of the notice.

If no appeal is made or if on appeal the Appeal Commissioners decide against the

employer, the balance of tax outstanding (amended as necessary as a result of the

Appeal Commissioners’ decision) becomes due and recoverable as if it was an amount

of income tax charged on the employer under Schedule E.

(3)

Subsection (4) provides that a notice given by an inspector or other officer under this

section may cover 2 or more income tax months.

(4)

990A Generation of estimates by electronic, photographic or other process

This section provides that where a computer generated PAYE employer notice of

estimation of tax, monthly (under section 989) or annual (under section 990), is issued

and served, it will be deemed to have been made by the inspector or nominated officer,

as appropriate, whose name appears on the notice in circumstances where due to the

computer generation of such estimate it will not have been made personally by such

inspector or nominated officer.

(a)

The section also applies the provisions of section 959G to PAYE annual estimates

providing that details of the sums charged in the estimates must be transmitted to the

Collector-General and that such transmission may be done electronically.

(b)

991 Interest

Summary

This section provides for the charging of simple interest per day or part of a day where

an employer has failed to pay tax due under the PAYE system. Interest is chargeable

from the “due date”’- see section 983 for definition of due date.

Details

Where an employer fails to pay over to the Revenue Commissioners the tax due under

this Chapter and the associated regulations, for each day or part of a day for which the

tax remains unpaid, simple interest is to be charged on the unpaid tax as follows:

(1)

• before 1 August 1978 at a rate of 0.0492 per cent,

• between 1 August 1978 and 31 March 1998, at a rate of 0.0410 per cent,

• between 1 April 1998 and 30 June 2009, at a rate of 0.0322 per cent, and

• on or after 1 July 2009 at a rate of 0.0274 per cent.

991A Payment of tax by direct debit

Summary

An employer may, by agreement, be permitted by the Collector General to pay income

tax due by direct debit. The amount of tax paid each month is based on the employer’s

best estimate. Any balance of tax outstanding at the end of the year of assessment is due

and payable by the “due date”.

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Where the total amount of monthly direct debits paid by the employer in a year of

assessment is less than 90% of the actual tax due, then the agreement is deemed not to

have effect, and the amount of tax due for each month is due and payable by the “due

date” for the month.

See section 983 for the definition of “due date”

Details

Definitions

The Collector General may enter into an agreement with an employer permitting the

employer to pay the income tax due for each income tax month in a tax year by direct

debit where-

(1)

• based on the employer’s best estimate, the total amount paid for the year represents

the total amount of tax due for those months,

(a)

• each payment is due on the due date for the month e.g. payment for the month of

April 2019 is due and payable by 14 May 2019 or 23 May 2019 where:

➢ the return and the remittance are made by electronic means, and

➢ the return and the remittance are made on or before the 23 of the month.

(b)

• the employer has complied with all requirements of the Chapter

(c)

Subject to subsection (3), where the actual liability in respect of the income tax months

contained in the year is greater than the amounts payable under the agreement, the

balance is to be included in the payment for December, i.e. payment due by the 14 or

23 January.

(2)

Where the total amount of monthly direct debits paid by the employer in a year is less

than 90% of the actual tax due, then the agreement is deemed not to have effect, and the

amount of tax due for each month is due and payable on the due date for that month.

(3)

The Collector General or the employer can terminate the agreement. Where this

happens the agreement is deemed not to have taken place.

(4)

991B Covid-19: Special warehousing and interest provisions

Summary

This section provides for “warehousing” or suspension of collection of PAYE

(Employer) liabilities incurred while trading was restricted during the Covid-19

Pandemic (“Covid-19 liabilities”).

The provision applies to businesses who, as a consequence of Covid-19 related trading

restrictions, are unable to pay their “Covid-19 liabilities” and who have filed all required

returns.

All “small and medium enterprises” (SMEs) whose tax affairs are dealt with in

Revenue’s Business Division or Personal Division qualify automatically. Other

taxpayers will qualify if they can show their business has been adversely affected by

Covid-19.

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Details

Subsection (1) defines various terms used in the section.

(1)

“the Acts” outlines the provisions an employer must comply with to qualify for debt

warehousing;

“Covid-19”is as defined in section 2 of the Emergency Measures in the Public Interest

(Covid-19) Act 2020;

“Covid-19 entitlement” means an entitlement to payment under one of a number of

Covid-19 support schemes listed in the section including the Covid Restrictions Support

Scheme, the Employment Wage Subsidy Scheme, various schemes administered by the

Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media, the Department of

Transport, Fáilte Ireland and Enterprise Ireland, as well as schemes with a similar

objective that may be approved by the Revenue Commissioners;

“Covid-19 liabilities” means the PAYE (Employer) liabilities from the pandemic period

which will be “warehoused”.

The three periods of the scheme, which are:

• Period 1, the “Covid-19 restricted trading phase”, which runs from the date the

business of the employer was adversely affected by Covid-19 (beginning no

earlier than the February 2020 income tax month for PAYE (Employer)

liabilities) until 31 December 2021,

• Period 2, the “Zero Interest Phase”, which runs from 1 January 2022 until 31

December 2022, and

• Period 3, the “Reduced Interest Phase”, which runs from 01 January 2023 until

the employer has paid the liabilities, during which interest will be charged at c.

3% per annum on warehoused tax debt from Period 1.

Where an employer has an entitlement to payment under one of the Covid-19 support

schemes listed above, Period 1 for that employer is extended by four months until 30

April 2022. Period 2 is amended to run from 1 May 2022 to April 2023 and Period 3 is

amended to run from 1 May 2023 until the warehoused liabilities have been repaid in

full.

(1A)

The business of an employer will be treated as “adversely affected” by Covid-19 on the

date on which the Revenue Commissioners agreed to temporarily suspend the collection

of Covid-19 liabilities because of the effect on the employer’s business of Covid-19

trading restrictions.

(2)

Debt warehousing will only apply to employers who, because of Covid-19, are unable

to pay their Covid-19 liabilities and who have filed all required PAYE (Employer)

returns. All “small and medium enterprises” (SMEs) whose tax affairs are dealt with

in Revenue’s Business Division or Personal Division will qualify automatically. Other

employers must notify Revenue that they have formed the opinion that they are unable

to pay their Covid-19 liabilities.

(3)

Whether or not an employer is dealt with by Revenue’s Personal Division or Business

Division will be determined by the most recent correspondence received by the

employer from Revenue.

(4)

An inspector or other officer nominated under section 990 TCA may carry out enquiries

to satisfy herself/himself that an employer is unable to pay their Covid-19 liabilities and

(5)

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to verify an employer’s entitlement to payment under one of the specified Covid-19

support schemes.

Section 991 is disapplied where the conditions of section 991B are complied with.

Provided these conditions are met, interest under section 991 TCA (c. 10% per annum)

will not apply to the late payment of Covid-19 liabilities.

(6)

Where this section applies to an employer and the employer complies with the

obligations imposed under the Acts on such an employer (for example, timely filing of

returns and payment of other liabilities) then the normal interest rate (c. 10% per annum

as of June 2020) for PAYE (Employer) liabilities as provided for in section 991(1) TCA

will not apply during the Period 1 and Period 2.

(7)

With effect from the first day of Period 3, interest a rate of 0.0082% per day or

approximately 3% per annum - will apply on the amount of Covid-19 liabilities

remaining unpaid where, in addition to being subject to this section and complying with

the employer’s obligations under the Acts, the employer, prior to Period 3, enters into,

and complies with, an agreement with the Collector General to pay the employer Covid-

19 liabilities, together with any interest payable under this section.

(8)

In the following circumstances the interest rates provided for in section 991 TCA will

reapply to outstanding Covid-19 liabilities:

• where an employer fails to comply with obligations under the Acts or fails to

comply with the terms of an agreement entered into in respect of repayment of

the Covid-19 liabilities. In these cases, interest under section 991 will apply on

outstanding Covid-19 liabilities with effect from the date of the happening of

the event which gave rise to non-compliance.

• where an employer fails to enter into an agreement in respect of repayment of

the Covid-19 liabilities. In this case, interest under section 991 will apply on

outstanding Covid-19 liabilities with effect from day 1 of Period 3.

(10)

Warehousing of Covid-19 liabilities will not prevent an employer obtaining tax

clearance under either section 1094 or 1095 TCA provided the employer complies with

the requirement to file returns under this Chapter.

(12)

The Collector General will not issue demands in respect of Covid-19 liabilities provided

the employer complies with the obligation to file returns required under this Chapter.

(13)

Provision has been made for warehousing of Covid-19 liabilities where an employer

files PAYE returns on a quarterly or annual basis. For such employers, their “Covid-19

liabilities” – that is, the tax debt which will be warehoused - will include liabilities of

income tax months which are paid at the same time as income tax months within Period

1 in the normal definition. For example, if an employer pays its PAYE (Employer)

liabilities quarterly and pays its January 2020 liability at the same time as its February

and March 2020 liabilities, the liabilities for January 2020 will be warehoused.

(14)

992 Appeals against estimates under section 989 or 990

Deleted by the Finance (Tax Appeals) Act 2015

993 Recovery of tax

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

994 Priority in bankruptcy, etc of certain amounts

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

995 Priority in winding up of certain amounts

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

996 Treatment for tax purposes of certain unpaid remuneration

Summary

This section provides that remuneration, which is deductible as an expense in the

computation of the profits or income of a trade or profession for a particular accounting

period or period of account but which remains unpaid at the end of the period, is deemed

to have been paid at a particular date in relation to that period. The PAYE provisions

apply to the payment as if it has been paid at that particular date.

Details

Definitions

“accounting period” is the period of 12 months ending on the date up to which the

accounts are usually made up or such period not exceeding 12 months as the Revenue

Commissioners may determine.

(1)

“date of cessation” is the date on which a person ceases to hold the office or

employment.

“date of commencement” is the date on which a person starts to hold the office or

employment.

“period of account” is, apart from an accounting period, the period for which the

accounts of the trade or profession are made up.

“period of accrual” for remuneration paid for an office or employment in a trade or

profession is the period starting on the later of the 1st day of the accounting period or

period of account or the date of starting in the office or employment and ending on the

earlier of the last day of the accounting period or period of account or the date of ceasing

in the office or employment.

“relevant date” is —

• in relation to an accounting period, the last day of that period,

• in relation to a period of account which is less than 12 months, the last day of that

period, and

• in relation to a period of account which is more than 12 months, each 31st day of

December within that period and the last day of that period.

“remuneration” includes all payments of whatever type from an office or employment.

Tax treatment of unpaid remuneration

Remuneration which is allowed as an expense in the computation of the profits or

income of a trade or profession but which remains unpaid at a relevant date is deemed

to be emoluments to which the PAYE system applies and to have been paid in

accordance with subsection (3), and all the provisions relating to PAYE apply to that

remuneration as if it had been so paid.

(2)

The unpaid remuneration is deemed to accrue on a day to day basis throughout the

period of accrual and there is deemed to have been paid on each relevant date the total

remuneration which has accrued up to that date or, if earlier, the date of cessation of the

office or employment from the beginning of the period or, if later, the date of

commencement of the office or employment.

(3)

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Exceptions

The provisions of the section do not apply to unpaid remuneration which is paid before

the end of 6 months from the relevant date or within 18 months from the 1st day of the

period of account where that period exceeds 12 months.

(4)

997 Supplementary provisions (Chapter 4)

Summary

This section provides that assessments to tax need not be made in respect of PAYE

emoluments except in a small number of cases. Where an inspector issues a statement

of liability under the Income Tax Regulations, that statement may, if the inspector so

directs at the time, be treated as if it were an assessment.

Details

No assessment need be made on an employee under Schedule E in respect of

emoluments within the PAYE system except where –

• the employee, by written notice, requests an assessment,

• the emoluments paid to the employee in the year of assessment are not the

same amount as those earned in the year (for example, extra renumeration paid

in the year for work done in the previous tax year), or

• the emoluments should be assessed at the higher rate of tax.

Where an assessment is made, credit is to be given for tax deducted from the

emoluments through the PAYE system.

(1)

For years of assessment 2003 onwards, there is a 4 year time limit on the making of an

assessment irrespective of whether it was requested by the taxpayer or is being made

by the inspector except in the case of fraud or neglect or, where a chargeable persons

fails to file a return or files an incomplete return, no limit applies. For earlier years there

is a 5 year time limit on taxpayer requests. [In the case of assessments made by an

inspector there is a 10 year time limit under section 924 for years earlier than 2003,

except in the case of fraud or neglect where no limit applies].

(1A)

An employer who deducts tax under PAYE from an employee’s emoluments and pays

it over to the Revenue Commissioners is acquitted and discharged of the amount so

paid as if it had actually been paid to the employee.

(2)

Where the inspector, in accordance with the provisions of Regulation 28 of the Income

Tax (Employments) Regulations 2018 (S.I. 345 of 2018) sends a statement of liability

to an employee, that statement, if the inspector so directs and gives notice accordingly

in the statement sent to the employee, is to be treated in all respects as if it were an

assessment made on the employee, and all the provisions of the Income Tax Acts

relating to the collection and recovery of tax charged in an assessment accordingly

apply to the statement.

(3)

An employee aggrieved by a statement of liability issued under subsection (3) may

appeal the statement to the Appeal Commissioners, in accordance with section 949I,

within the period of 30 days after the date of the statement.

(4)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

CHAPTER 5

Miscellaneous provisions

Overview

This Chapter provides for various miscellaneous provisions in relation to the collection

and recovery of tax. The Revenue Commissioners may collect certain tax debts from

certain third parties (sections 1001 and 1002). It also provides for payment of certain

taxes by donation of certain heritage items (section 1003) and by donation of heritage

property to an Irish heritage trust or the Commissioners of Public Works in Ireland

(section 1003A). There is also provision for the postponement of tax on certain foreign

income/gains (sections 1004 and 1005). Finally, the Chapter also provides for the

entitlement of sheriffs to poundage (section 1006).

998 Recovery of moneys due

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

999 Taking by Collector-General of proceedings in bankruptcy

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

1000 Priority in bankruptcy, winding up, etc. for sums recovered or deducted

under section 531, 989 or 990

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

1001 Liability to tax, etc of holder of fixed charge on book debts of company

Summary

Where a person holds a fixed charge on the book debts of a company and that company

fails to pay PAYE, VAT or local property tax for which it is liable, the holder of the

fixed charge is, on notification in writing from the Revenue Commissioners, liable for

that tax. The fixed charge holder’s liability is limited to amounts received (while the

fixed charge is in existence) from the company in respect of all debts due to the holder

by the company. However, where the fixed charge holder notifies the Revenue

Commissioners of the existence of the fixed charge, the fixed charge holder’s liability

is confined to the amount which the company fails to pay after the fixed charged holder

has been notified by the Revenue Commissioners of any potential liability under this

section.

Details

Definition

The term “relevant amount” means any amount which the company is liable to remit

under Chapter 4 of this Part (PAYE), the Value-Added Tax Consolidation Act 2010

and the Finance (Local Property Tax) Act 2012, that is, amounts which the company

has collected from other parties on behalf of Revenue.

(1)

Liability of fixed charge holder

Where a person holds a fixed charge (created on or after 27 May, 1986) on the book

debts of a company and the company fails to pay any relevant amount for which it is

liable, the fixed charge holder becomes liable to pay that amount on demand and on

(2)

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neglect or refusal to pay may be proceeded against in the same manner as any other tax

defaulter.

The holder of the fixed charge will not become liable for unpaid debts of the company

who gave the fixed charge unless the Revenue Commissioners has been notified in

writing by that a company has defaulted on PAYE/VAT/local property tax and that the

fixed charge holder may become liable for any future default and, if subsection (3A)

does not apply, has also become liable for the amount then in default.

(3)

Where, within 21 days of the creation of the fixed charge or, where the fixed charge has

been transferred on or before 31 January 2020 or within 21 days of the date of transfer

of the fixed charge (whichever is the later), the holder of the fixed charge furnishes in

writing to the Revenue Commissioners the following details in relation to the charge:

(3A)

(i) the name of the company on whose book debts the charge has been

created;

(ii) the registration number of the company as issued by the Companies

Registration Office to that company;

(ii) the registration number of the company as issued by the Companies

Registration Office to that company;

(iii) the tax registration number of the company as issued by the Revenue

Commissioners to that company;

(iv) the date the fixed charge was created or transferred, as the case may be;

and

(v) the name and address of the holder of the fixed charge;

the liability of the fixed charge holder is confined to amounts which become due for

payment by the company after the fixed charge holder has been notified of the fixed

charge holder’s liability.

The fixed charge holder will not be required to pay more than the amount received from

the company on foot of the fixed charge.

4(a)

The liability of a fixed charge holder in accordance with this section is confined to

amounts which become due for payment by the company after the fixed charge holder

has been notified of the liability by Revenue.

4(b)

Withdrawal of notification of liability

The Revenue Commissioners may withdraw a notice of liability issued under this

section, but this does not affect any liability of the fixed charge holder arising before

the withdrawal nor the right of the Revenue Commissioners to issue a subsequent

notice to the fixed charge holder.

(5)

Delegation

The Revenue Commissioners may delegate their powers and functions under this

section to nominated officers.

(6)

1002 Deduction from payments due to defaulters of amounts due in relation to

tax

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Summary

This section authorises the Revenue Commissioners to attach amounts owed by a third

party to a taxpayer who has defaulted in paying income tax (including employer’s

PAYE), corporation tax, capital gains tax, capital acquisitions tax, stamp duties,

customs duties, excise duties, local property tax, temporary solidarity contribution or

value-added tax. The power of attachment also extends, by virtue of the general

application of income tax collection procedures to the collection of various other

contributions to the State, to amounts owed by taxpayers in respect of PRSI

(employment) contributions, self-employed PRSI contributions, health levies and

employment and training levies.

Essentially, the section provides that where the Revenue Commissioners have reason

to believe that a third party, including a financial institution, has an amount of money

due to a defaulting taxpayer, they may direct the third party to pay to them the lesser

of —

• the amount due to the defaulting taxpayer, and

• an amount equal to the tax due by the taxpayer.

Notices of attachment can be issued electronically by the Revenue Commissioners.

Details

Definitions

“the Acts” are the Customs Acts, the statutes relating to the duties of excise, the Tax

Acts (that is the Income Tax Acts and the Corporation Tax Acts), the Capital Gains Tax

Acts, the Value-Added Tax Consolidation Act 2010, the Capital Acquisitions Tax

Consolidation Act 2003, the Stamp Duties Consolidation Act 1999, Finance (Local

Property Tax) Act 2012, Part 18A (income levy), Part 18B (parking levy in urban areas),

Part 18C (domicile levy), Part 18D (universal social charge), Part 18E (defective

concrete products levy), Part 22A (residential zoned land tax), and Part 22B (vacant

homes tax) and the Energy (Windfall Gains in the Energy Sector)(Temporary Solidarity

Contribution) Act 2023 (which relates to the Temporary Solidarity Contribution). Also

included are the various enactments extending or amending the Value-Added Tax

Consolidation Act 2010, the Capital Acquisitions Tax Consolidation Act 2003 and the

Stamp Duties Consolidation Act 1999. In addition, any instrument (for example, an

order or a regulation) made under any of the preceding Acts is included in the definition.

(1)(a)

“additional debt” is any amount which, at any time after a relevant person (essentially

the debtor of the defaulting taxpayer) has received a notice of attachment but before the

end of the relevant period relating to the notice (that is, the period for which the notice

of attachment remains in force), would be a debt due by the relevant person to the

taxpayer if the notice were received by the relevant person at that time. The purpose

here is to ensure that debts which accrue to the taxpayer after a notice of attachment is

served but before the notice expires are capable of being attached.

“debt” is the amount or aggregate amount of any money which, at the time the notice

of attachment is received by the relevant person, is due by the relevant person (either

directly or indirectly) to the taxpayer.

Where the relevant person is a financial institution, any amount held on deposit for the

taxpayer’s sole benefit or held jointly with another person is regarded as a debt due to

the taxpayer. In the case of joint deposits, unless contrary evidence is produced within

10 days of the giving of a notice by the financial institution to all parties to the joint

deposit, the deposit is deemed to be held equally by all such parties. Only so much of a

(1)(b) & (e)

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joint deposit which is either shown to be held for the benefit of the taxpayer or is deemed

to be so held is regarded as a debt due by the financial institution to the taxpayer.

Any amount due by the relevant person to the taxpayer as emoluments, after statutory

deductions, under a contract of service may be subject to a notice of attachment. In the

situation, the notice of attachment may specify that the debt is to be recovered over a

period specified in the notice.

(1)(c)

Where there is a dispute as to the amount due by the relevant person to the taxpayer,

the amount in dispute is disregarded for the purposes of determining the size of the debt.

(1)(d)

“deposit” is a sum of money paid to a financial institution on terms under which it is to

be repaid with or without interest and either on demand or at a time or in circumstances

agreed by, or on behalf of, the person making the payment and the financial institution

to whom the payment is made.

(1)(a)

“emoluments” are anything assessable to income tax under Schedule E.

“EEA Agreement” means the Agreement on the European Economic Area signed at

Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement.

“EEA state” means a state which is a contracting party to the EEA Agreement.

“financial institution” means a person who holds or has held a licence granted by the

Central Bank, or a person who holds or has held a corresponding licence under the law

of another EEA state, authorising them to carry on banking business in the State, or a

person who is exempt under section 7(4) of the Central Bank Act 1971 from the

requirement to hold a licence (this reference encompasses, for example, the Post Office

Savings Bank, Building Societies, Industrial and Provident Societies and Credit

Unions), a European credit institution authorised by the Central Bank to carry on

business in the State and a branch of a financial institution which records deposits in

its books as liabilities of the branch.

“further return” is a further return of an additional debt due by the relevant person to

the taxpayer. The further return is to be made where an additional debt accrues to the

taxpayer after receipt of a notice of attachment by a debtor of the taxpayer (see

subsection (4)).

“interest on unpaid tax” is the interest that has accrued to the date on which a notice of

attachment is given under any provision of the Acts providing for the charging of

interest in respect of the unpaid tax or taxes specified in the notice of attachment, and

includes interest on an undercharge of tax which is attributable to fraud or neglect.

“notice of attachment” is defined in subsection (2).

“notice of revocation” is defined in subsection (10).

“penalty” is a monetary penalty imposed on a taxpayer under a provision of the Acts.

“relevant period” is the period for which the notice of attachment remains in force. It

starts when the notice is received by the relevant person and ends on the earliest of —

• the date the full amount of the taxpayer’s default is paid over by the relevant

person to Revenue,

• the date the relevant person receives a notice of revocation of the notice of

attachment,

• the date the relevant person or taxpayer is declared bankrupt, and

• where the relevant person or taxpayer is a company, the date it commences to be

wound up.

“relevant person” is a person whom the Revenue Commissioners believe may have, at

the time the notice of attachment is received by that person, a debt due to the taxpayer.

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

“return” is a return to the Revenue Commissioners of a debt due by the relevant person

to the taxpayer under subsection (2)(a)(iii).

“specified amount” is defined in subsection (2).

“tax” means any tax, duty, levy or charge under the care and management of the

Revenue Commissioners.

“taxpayer” is a person who is liable to pay, remit or account for tax to the Revenue

Commissioners.

(1)(f)

A notice of attachment, notice of revocation and any other notice provided for by this

section may be given to a taxpayer or a relevant person electronically.

Obligations of relevant persons on receipt of notice of attachment

Where a taxpayer is in default in the payment of tax (including interest and penalties –

in the remainder of this note the phrase “tax” is used to denote unpaid tax, interest and

penalties) the Revenue Commissioners may issue a notice of attachment to a relevant

person containing details of the taxpayer’s name and address and the total amount or,

in a case where more than one notice of attachment is issued to relevant persons, a

portion of the total amount of tax in default. The option is available to the Revenue

Commissioners to issue more than one notice of attachment in respect of the one

taxpayer. Where this is done, the aggregate of the amounts set out in such notices of

attachment cannot exceed the aggregate amount of tax actually in default.

(2)(a), (b)

& (d)

The notice of attachment must also contain a direction to the relevant person requiring

a return to be made, within 10 days from the receipt of the notice, specifying whether

or not a debt or debts is due to the taxpayer and, if so, the amount of such debts. The

amount of the debts due up to the amount specified in the notice of attachment must be

paid to the Revenue Commissioners within 10 days of the receipt of the notice. The

relevant person is obliged to comply with the direction contained in the notice of

attachment.

Where the relevant person is a financial institution and the debt owed to the taxpayer is

part of a joint account, the financial institution must on receipt of a notice of attachment

issue a notice to the joint account holders stating —

(2)(c) & (e)

• the taxpayer’s name and address,

• the name and address of the joint account holder to whom the notice is issued,

• the name and address of the financial institution, and

• the amount of unpaid tax specified in the notice of attachment.

This notice must inform the parties to the account that a notice of attachment in respect

of the taxpayer has been received and that, unless evidence to the contrary is produced

within 10 days of the issue of the notice, the joint deposit is deemed to be held for the

benefit of each party equally and an amount equal to the amount of the taxpayer’s share

of the deposit up to the amount specified in the attachment notice or the amount of the

taxpayer’s share of the deposit (whichever is the lesser) will be paid to the Revenue

Commissioners.

Notification to taxpayer that notice of attachment has issued

Before a notice of attachment may issue, the amount of tax in default must be in default

for at least 14 days and the Revenue Commissioners must have given the taxpayer a

written notice not later than 7 days before the issue of the notice of attachment to the

effect that if the amount of tax in default is not paid it may be subject to attachment.

(3)

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Other obligations of relevant persons

Where a relevant person receives a notice of attachment in respect of a taxpayer and at

that time the debt due to the taxpayer is less than the amount of the taxpayer’s default

of tax as entered in the notice, or there is no such debt due, and subsequent to this but

before the end of the relevant period in relation to the notice an additional debt becomes

due to the taxpayer, the relevant person must within 10 days of that additional debt

becoming due make a further return to the Revenue Commissioners and pay over the

amount of the additional debt. This procedure is to be applied in respect of every such

additional debt becoming so due until the amount paid over by the relevant person

equals the amount specified in the notice of attachment. If the amount of the latest debt

so due exceeds the difference between the amount specified in the notice of attachment

and the aggregate of the debts already paid over to the Revenue, the relevant person

need only pay over so much of that debt as makes the aggregate of all the amounts paid

over equal to the amount specified in the notice of attachment.

(4)

Where a relevant person makes, either fraudulently or negligently, an incorrect return,

section 1078 which provides for criminal penalties applies.

(5)

A relevant person issued with a notice of attachment is prohibited from reducing the

amount of the debt due to the taxpayer unless such reduction does not reduce the debt

to an amount less than the amount of the taxpayer’s default, or unless the reduction is

made pursuant to a court order. If the debt is otherwise reduced, it is treated as not

having been reduced and the full amount is accordingly available for attachment and

must be paid over by the relevant person.

(6)

Sections 1052 and 1054 which provide for the imposition of monetary penalties for

failure to make returns apply to a relevant person who fails to make a return required

by a notice of attachment. A certificate by an officer of the Revenue Commissioners

that a particular return was not received from a person will be accepted as evidence to

that effect until the contrary is proved.

(7)

Where a relevant person fails to pay to the Revenue Commissioners the amount

specified in the return, the amount may, if a notice of revocation has not been issued,

be sued for through the courts by way of civil proceedings by the Revenue

Commissioners.

(8)

A failure by a relevant person to make a return required by this section or pay the

amount shown on the return to the Revenue Commissioners is not to be treated as a

failure to which section 1078 applies.

(9)

Revocation of notices of attachment

The Revenue Commissioners may revoke a notice of attachment at any time by notice

in writing to the relevant person. Such a revocation is to be made without delay if the

taxpayer has paid the amount in default to the Revenue Commissioners. Where a

relevant person pays an amount to the Revenue Commissioners and at that time the

taxpayer has already paid the amount in default, the amount paid by the relevant person

is to be refunded without delay to the taxpayer by the Revenue Commissioners.

(10)

Notifications

The Revenue Commissioners must provide the taxpayer with a copy of a notice of

attachment or a notice of revocation issued to a relevant person without delay.

(11)

A relevant person is to notify the taxpayer in writing and without delay of the fact of

the payment of an amount to the Revenue Commissioners, and the reason for the

(12)

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payment. The Revenue Commissioners must without delay notify the relevant person

and the taxpayer of the receipt of such a payment.

Discharge of debt by relevant persons

Where a relevant person pays to the Revenue Commissioners the whole or part of any

debt or additional debt due to the taxpayer, the relevant person is acquitted and

discharged of the amount paid as if it had been paid to the taxpayer.

(13)

Protection for relevant persons against court action

Where a relevant person is prohibited from making any disbursement out of a debt or

additional debt due to a taxpayer, no action lies against that person in any court by

reason of a failure to make such a disbursement.

(14)

Secrecy

The secrecy obligations imposed on the Revenue Commissioners do not apply in

relation to information contained in a notice of attachment.

(15)

Bankruptcy and winding-ups

A notice of attachment in respect of a taxpayer is not to be given to a relevant person at

any time when the taxpayer or relevant person is an undischarged bankrupt or a

company being wound up.

(16)

Delegation

The Revenue Commissioners may delegate to any of their officers any of the functions

and acts authorised by the section to be performed or discharged by the Revenue

Commissioners.

(17)

1003 Payment of tax by means of donation of heritage items

Summary

Certain tax liabilities may be discharged by way of a donation of an important heritage

item to a specified national collection provided certain conditions are met.

The scheme takes the form of a non-refundable payment on account of tax of an amount

equal to 80 per cent of the market value of the heritage item donated. The heritage item

must be valued at a minimum of €150,000 and, in the case of a collection, at least one

item in the collection must have a minimum value of €50,000. There is a ceiling on the

aggregate of items approved for donation in any one year of €8 million.

Details

Definitions

“the Acts” are the Tax Acts (that is, the Income Tax Acts and the Corporation Tax Acts,

other than those provisions which provide for tax collected under the PAYE tax

deduction system and relevant contracts tax), the Capital Gains Tax Acts, and the

Capital Acquisitions Tax Consolidation Act 2003 (including enactments amending or

extending that Act). In addition any instrument (for example, a regulation or order)

made under any of these Acts is included in the definition.

(1)

“approved body” is one of the institutions eligible to receive a donation. These

institutions are —

• the National Archives,

• the National Gallery of Ireland,

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• the National Library of Ireland,

• the National Museum of Ireland,

• the Crawford Art Gallery Cork Limited,

• the Irish Museum of Modern Art, and

• any other State owned or funded body approved by the Minister for Arts,

Heritage, Gaeltacht and the Islands (now Minister for Arts, Sport and Tourism),

with the consent of the Minister for Finance.

“arrears of tax” is tax (including interest and penalties) which at the time the gift is

made is unpaid —

• in the case of income tax, corporation tax and capital gains tax, for the relevant

period, and

• in the case of gift tax and inheritance tax, before the calendar year in which the

relevant gift is made.

“current liability” for income tax and capital gains tax refers to tax due in the year of

assessment in which the gift is made. For corporation tax it refers to tax liability arising

in the accounting period in which the gift is made. In the case of gift or inheritance tax

it means tax owed for the calendar year in which the gift was made.

“designated officer” is either the member of the selection committee representing the

body to which the gift is made or, if that body is not so represented, a person nominated

by the Minister for Arts, Heritage, Gaeltacht and the Islands (now Minister for Arts,

Sport and Tourism).

“heritage item” is defined in subsection (2)(a).

“market value” is defined in subsection (3).

“relevant gift” is the gift of a heritage item to an approved body provided no

consideration (other than the tax credit given by the section) is received.

“relevant period” for income tax and capital gains tax is any year of assessment before

the year in which the relevant gift is made. In the case of corporation tax it is any

accounting period before the accounting period in which the relevant gift is made.

“selection committee”: this committee comprises —

• an officer of the Minister for Arts, Sport and Tourism, who is to act as Chairperson

of the committee,

• the Chief Executive of the Heritage Council,

• the Director of the Arts Council,

• the Director of the National Archives,

• the Director of the National Gallery of Ireland,

• the Director of the National Library of Ireland,

• the Director of the Crawford Art Gallery Cork Limited,

• the Director of the National Museum of Ireland,

• the Director and Chief Executive of the Irish Museum of Modern Art.

In addition, it includes a person acting in the capacity of any of the above persons where

that person cannot attend due to illness, absence or other cause.

“tax” is income tax, corporation tax, capital gains tax, gift tax or inheritance tax.

“valuation date” is the date on which an application is made to the selection committee

for a determination that an item is a heritage item.

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The selection committee may act even if there are one or more vacancies and may

regulate its own procedures. The member of the selection committee representing an

approved body which is intended to receive the donated item cannot be involved in

deciding on its selection (but may, however, partake in a discussion of the application

before the decision is made).

Heritage items

A heritage item is any kind of cultural item (including any archaeological item, archive,

book, estate record, manuscript and painting), any collection of cultural items and any

collection of cultural items in their setting. Before any such item can be a heritage item,

the selection committee, following an application to them by the person who owns the

item, must make a determination that the item is an outstanding example of its type

(pre-eminent in its class) whose export from the State would constitute a diminution of

the accumulated cultural heritage of Ireland or whose import into the State would

significantly enhance that heritage and also that the item is suitable for acquisition by

one of the bodies approved for accepting such items.

(2)(a)

The selection committee, in considering an application that an item is a heritage item,

is required to —

(2)(aa)

(i) consider the supporting evidence submitted by the applicant, and

(ii) request and consider a written opinion relating to the application from —

(I) the approved body which is the intended recipient of the donation, and

(II) the Heritage Council, the Arts Council or such other person or body which

is considered appropriate by the selection committee.

Where an application is in respect of a collection of items, the selection committee is

precluded from making a determination in relation to the collection unless, in addition

to making a determination relating to the collection as a whole, the committee is

satisfied that – based on its consideration of the application under paragraph (aa) – it

could also make a determination in relation to at least one item in the collection, if that

was to be required.

(2)(ab)

The restriction imposed by subsection (2)(ab) – that in any collection of items there is

at least one item of significant importance in its own right – does not apply in relation

to collections consisting wholly of manuscripts or archival material. Such collections

can be those created by one individual, family or organisation, or assembled by an

individual, family or organisation. However, it is conditional on the collection being in

existence for at least 30 years, with each item being part of the collection for that term,

as well as there being merit in the items being maintained as a collection.

(2)(ac)

When it receives an application for a determination that an item is a heritage item, the

selection committee must make a written request to the Revenue Commissioners for a

valuation.

(2)(b)

The selection committee is limited to selecting items valued at a minimum of €150,000.

Where the determination is sought in respect of a collection of items, at least one item

in the collection must have a minimum value of €50,000. There is a ceiling on the

aggregate value of the items in respect of which determinations are made and not

revoked in any one year of €8 million. Where a determination is made and subsequently

revoked, the value of the item concerned is not to be aggregated with the value of the

other heritage items in respect of which a determination has been made in that year for

the purposes of calculating the €8 million cap.

(2)(c)

An item ceases to be a heritage item —

(2)(d)(i)

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• where the item is sold or otherwise disposed of to a person other than an approved

body,

• where the owner notifies the committee in writing that it is not intended to make

the gift of the item to the approved body, or

• where the gift of the item is not made to an approved body within the calendar

year following the year in which the determination is made to the effect that it is

a heritage item.

Where the selection committee becomes aware within the calendar year in which the

determination is made of the occurrence of either of the first two above events, it may

revoke the determination.

(2)(d)(ii)

The selection committee may make a determination in respect of an item of archival

material or a manuscript, or a collection consisting wholly of archival material or

manuscripts, without the item, or any individual item in the collection, having the

minimum value of €50,000 as set out in subsection (2)(c). However, the general

valuation of €150,000 on the overall collection is retained.

(2A)

Valuation rules

The market value of any item is (subject to subsection (3)(d)) the lesser of —

(3)(a)

(i) the price which, in the opinion of the Revenue Commissioners, the item would

realise if sold on the open market on the valuation date (that is, the date of

application to the selection committee for a determination), and

(ii) (I) the price which, in the opinion of the prospective donor, the item would

fetch if sold on that date, or

(II) at the election of that person, the amount paid for the item by that person.

The Revenue Commissioners may ascertain the value in such manner and by such

means as they think fit and for this purpose they may engage a person to inspect and

value the item for them.

(3)(b)

Any cost incurred in the valuation process is to be defrayed by the Revenue

Commissioners.

(3)(c)

The value of heritage items that are acquired for donation at auction is deemed to

include the auctioneers fees and also —

(3)(d)

(i) any VAT in connection with those fees, or

(ii) any tax corresponding to VAT in the case of auctions held abroad.

Certificate of receipt of gift

Once a relevant gift is made to an approved body the designated officer of that body

must issue a certificate to the person who made the gift certifying the receipt of the

relevant gift and the transfer of ownership of the item to that body. A duplicate of the

certificate must be transmitted by the designated officer to the Revenue Commissioners.

(4)

Tax credit

Where a person makes a relevant gift, the person is, on submission to the Revenue

Commissioners of the certificate given by the designated officer of the body to which

the gift was made, treated as having made on the date of the submission a payment on

account of tax of an amount equal to 80 per cent of the market value of the relevant gift

on the valuation date. This restriction in the amount of tax credit available applies to

determinations made on or after 1 January 2009.

(5)

The payment on account of tax is to be set so far as it is possible —

(6)

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• firstly, against arrears of tax (including interest and penalties) and for an earlier

period in priority to a later period, and

• then, against any current liability to tax which the person nominates.

For the purpose of determining whether a period is an earlier or later period, the date

on which an arrear of tax became due decides whether it is for an earlier or later period.

Any remaining balance is set off against such future liabilities to tax of the person who

is treated as having made the payment as that person nominates.

(7)

A person who has the power to sell a heritage item in order to pay capital acquisitions

tax may make a relevant gift of that item in or towards satisfaction of that tax.

(8)

Prohibition on refunds

There is no entitlement to a refund of tax in respect of a payment on account of tax

made under this section.

(9)

Prohibition on interest

Interest is not payable should it be due, whether directly or indirectly, because of any

set-off which arises in respect of a payment on account of tax.

(10)

Bar on double relief

A person discharging tax by virtue of this section is not entitled to any other relief in

respect of the gift.

(11)

Publication

The Revenue Commissioners are to include the details of all gifts made in a calendar

year under this section in the publication of their annual report to the Minister for

Finance.

(12)

1003A Payment of tax by means of donation of heritage property to an Irish

heritage trust or the Commissioners of Public Works in Ireland

Summary

Certain tax liabilities may be discharged by means of a donation of heritage property to

the Irish Heritage Trust or the Commissioners of Public Works in Ireland provided

certain conditions are met. “Heritage property” includes buildings, gardens and contents

of buildings in so far as they are historically associated with the buildings.

The scheme takes the form of a non-refundable payment on account of tax of an amount

equal to 50 per cent of the market value of the heritage property donated. On the

introduction of the scheme relief was available on the full market value of the heritage

property donated. Under section 94 of the Finance (No. 2) Act 2008 the relief was

restricted to 80 per cent in relation to determinations made on or after 1 January 2009.

The relief at 50 per cent applies to determinations made on or after 27 March 2013.

There is a ceiling of €6 million on the aggregate value of heritage properties that may

be approved in any one year.

Details

Definitions

“the Acts” are the Tax Acts (that is, the Income Tax Acts and the Corporation Tax Acts,

other than those provisions which provide for tax collected under the PAYE tax

deduction system, relevant contracts tax and advance corporation tax), the Capital Gains

Tax Acts, and the Capital Acquisitions Tax Consolidation Act 2003 (including

(1)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

enactments amending or extending that Act). In addition, any instrument (for example,

a regulation or order) made under any of these Acts is included in the definition.

“arrears of tax” is tax (including interest and penalties) which at the time the gift is

made is unpaid —

• in the case of income tax, corporation tax and capital gains tax, for the relevant

period, and

• in the case of gift tax and inheritance tax, before the start of the calendar year in

which the relevant gift is made.

“contents of the building” means house contents where these are historically associated

with the building and are contents which the Minister for Arts, Heritage and the

Gaeltacht or, as appropriate the Commissioners of Public Works in Ireland, are satisfied

are important to establishing the historic or aesthetic context of the building.

“current liability” for income tax and capital gains tax refers to tax due in the year of

assessment in which the gift is made. For corporation tax it refers to tax liability arising

in the accounting period in which the gift is made. In the case of gift tax or inheritance

tax it means tax owed for the calendar year in which the gift was made.

“heritage property” is defined in subsection (2)(a).

“market value” is defined in subsection (3).

“Minister” means the Minister for Arts, Heritage and the Gaeltacht.

“relevant gift” is a gift of heritage property to the Trust or, as appropriate to the

Commissioners of Public Works in Ireland provided no consideration (other than the

tax credit given by the section) is received by the person making the gift.

“relevant period” fixes the various periods which will apply for the purposes of

determining arrears of tax. For income tax and capital gains tax, it is any year of

assessment before the year in which the relevant gift is made. In the case of corporation

tax, it is any accounting period before the accounting period in which the relevant gift

is made.

“tax” is income tax, corporation tax, capital gains tax, gift tax or inheritance tax.

“Trust” is the company designated by the Minister for Finance for the purposes of this

section in the order referred to in section 122(2) of the Finance Act 2006.

“valuation date” is the date on which an application is made to the Minister for Arts,

Heritage and the Gaeltacht for a determination under subsection (2)(a).

Heritage property

“Heritage property” is a building or a garden which, following a written application by

its owner, is determined by the Minister or, as appropriate the Commissioners of Public

Works in Ireland to be a building or a garden which is an outstanding example of its

type, pre-eminent in its class, which is intrinsically of significant scientific, historical,

horticultural, national, architectural or aesthetic interest and is suitable for acquisition

by the Trust.

(2)(a)

For the purposes of the section, “building” includes any associated outbuilding, yard

and also land which is occupied or enjoyed with the building as part of its garden or

designed landscape and which contributes to the appreciation of the building in its

setting. It also includes the contents of the building and any land necessary for the

provision of access to the building or for the provision of parking facilities for visitors

to the building.

(2)(aa)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

For the purposes of the section, “garden” includes any associated building, outbuilding

or yard and also land which is occupied or enjoyed with the garden and which

contributes to the appreciation of the garden in its setting. It also includes any land

necessary for the provision of access to the garden or for the provision of parking

facilities for visitors to the garden.

This section also provides that, where a heritage property is donated and the Trust or

Commissioners of Public Works deem that lands outside of the ownership of the donor

of the property are necessary for the provision of access to the property or for the

provision of parking facilities, such lands may be donated for such purpose under the

terms of the section and those lands shall be deemed to be a heritage property.

(2)(ab)

This section requires that an application for a determination from a potential donor must

be directed to either the Minister for Arts, Heritage and the Gaeltacht or the

Commissioners of Public Works in Ireland, depending on whether the intended gift will

be made to the Irish Heritage Trust or the Commissioners of Public Works in Ireland.

(2)(b)

The Minister or, as appropriate the Commissioners of Public Works in Ireland, in

considering an application for a determination, is required to consider any supporting

evidence provided to the Minister or, as appropriate the Commissioners of Public

Works in Ireland by the applicant.

(2)(c)

On receipt of an application for a determination, the Minister or, as appropriate the

Commissioners of Public Works in Ireland must make a written request to the Revenue

Commissioners for a valuation.

(2)(d)

There is a ceiling on the aggregate value of the heritage properties in respect of which

determinations are made by the Minister or, as appropriate the Commissioners of Public

Works in Ireland and not revoked in any one year of €6 million. Where a determination

is made and subsequently revoked, the value of the property concerned will not be

aggregated with the value of the other heritage properties in respect of which a

determination has been made in that year for the purpose of calculating the €6 million

cap.

(2)(e)

The Commissioners of Public Works in Ireland shall not make a determination without

the consent in writing of the Minister for Public Expenditure and Reform and the

Minister may specify conditions, which will apply to such a determination.

(2)(f)

This paragraph requires appropriate consultation between the Minister for Arts,

Heritage and the Gaeltacht and the Commissioners of Public Works in Ireland in the

operation of this scheme.

(2)(g)

A property ceases to be a heritage property where —

(2)(h)

• the property is sold or otherwise disposed of to a person other than the Trust or,

as appropriate, the Commissioners of Public Works in Ireland,

• the owner notifies the Trust or as appropriate the Commissioners of Public Works

in Ireland in writing that it is not intended to make a gift of the property to the

Trust or, as appropriate, those Commissioners, or

• the gift of the property is not made to the Trust or, as appropriate, the

Commissioners of Public Works in Ireland within the calendar year following the

year in which the determination is made to the effect that it is a heritage property.

Where the Minister becomes aware or, as appropriate, the Commissioners of Public

Works in Ireland become aware, within the calendar year in which the determination is

made of the occurrence of either of the first two above events, the Minister or as

appropriate the Commissioners of Public Works in Ireland may formally revoke the

determination.

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Valuation rules

The market value of any property is the lesser of —

(3)(a)

(i) the price which, in the opinion of the Revenue Commissioners, the property

would realise if sold on the open market on the valuation date (that is, the date of

application to the Minister for a determination), and

(ii) (I) the price which, in the opinion of the prospective donor, the property would

fetch if sold on that date, or

(II) at the election of that person, the amount paid for the property by that

person.

The Revenue Commissioners may ascertain the market value in such manner and by

such means as they think fit and for this purpose they may engage a person to inspect

and value the property for them.

(3)(b)

Any cost incurred in the valuation process is to be defrayed by the Revenue

Commissioners.

(3)(c)

Certificate of receipt of gift

Once a relevant gift is made to the Trust or as appropriate to the Commissioners of

Public Works in Ireland a certificate must issue to the person who made the gift

certifying the receipt of the relevant gift and the transfer of ownership of the property

to the Trust, or as appropriate the Commissioners of Public Works in Ireland. A

duplicate of the certificate must be transmitted by the Trust or as appropriate the

Commissioners of Public Works in Ireland to the Revenue Commissioners.

(4)

Tax credit

Where a person makes a relevant gift, the person is, on submission to the Revenue

Commissioners of the certificate given by the Trust or as appropriate the

Commissioners of Public Works in Ireland under subsection (4), treated as having made

on the date of the submission a payment on account of tax of an amount equal to 50 per

cent of the market value of the relevant gift on the valuation date. This restriction in the

amount of tax credit available applies to determinations made on or after 27 March

2013. From 1 January 2009 to 26 March 2013 the restriction in the amount of the tax

credit available was 80 per cent of the market value of the relevant gift on the valuation

date. Prior to this date the credit available was 100%.

(5)

The payment on account of tax is to be set, so far as it is possible, against any liability

to tax of the person who is treated as having made the payment in the following order:

(6)

• firstly, against arrears of tax (including interest and penalties) and for an earlier

period in priority to a later period, and

• then, against any current liability to tax which the person nominates.

For the purpose of determining whether a period is an earlier or later period, the date

on which an arrear of tax became due decides whether it is for an earlier or later period.

Any balance remaining is to be set off against such future liability of the person who is

treated as having made the payment as that person nominates.

(7)

A person who has the power to sell a heritage property in order to pay capital

acquisitions tax may make a relevant gift of that property in or towards satisfaction of

that tax.

(8)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Prohibition on refunds

There is no entitlement to a refund of tax in respect of a payment on account of tax

made under this section.

(9)

Prohibition on interest

Interest is not payable should it be due, whether directly or indirectly, because of any

set-off which arises in respect of a payment on account of tax made under this section.

(10)

Bar on double relief

A person discharging tax by virtue of this section is not entitled to any other relief in

respect of a relevant gift.

(11)

Fota House

In the event that Fota House in Co. Cork is acquired by the Irish Heritage Trust and the

particular collection described in paragraph (b) is gifted to the Trust, relief under this

section will – subject to paragraphs (c) and (d) – be granted as if Fota House was

acquired by way of a relevant gift and the collection was part of the House’s contents.

(11A)(a)

This collection is one of (either or both) Irish paintings and furniture which had been

on show in Fota House between 1983 and 1990 and is to be housed there again by the

Irish Heritage Trust. The Minister for Arts, Heritage and the Gaeltacht must be satisfied

that the collection is important in establishing the aesthetic context of Fota House.

(11A)(b)

This subsection will not apply unless the collection is gifted to the Irish Heritage Trust

in 2008.

(11A)(c)

Relief under this section will be granted to the donor of the collection to the Trust even

though that person is not the donor of Fota House.

(11A)(d)

Publication

The Revenue Commissioners are to include the details of all donations of heritage

properties made in a calendar year under this section in their annual report for that year

to the Minister for Finance.

(12)

1004 Unremittable income

Summary

This section provides that the Revenue Commissioners may postpone payment of

income tax or corporation tax in respect of income arising abroad where the income

cannot be remitted to the State due to restrictions in force in the country where the

income arises.

Details

Definition

“particular income” is income arising from outside the State which is, or which is

included in, the amount on which income tax or corporation tax is computed.

(1)

Application

This section applies where income tax or corporation tax is charged by assessment for

any period and the tax has not been paid.

(2)

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Postponement of payment

The Revenue Commissioners may allow the postponement of payment of income tax

or corporation tax in respect of particular income if the taxpayer shows to the

satisfaction of the Commissioners that the income cannot be remitted to the State owing

to legislation or governmental action in the country in which the income arises.

(3)

Information

The Revenue Commissioners may call for any information they consider necessary for

the purposes of the administration of this section.

(4)

Appeals

A person who is dissatisfied with a decision of the Revenue Commissioners as to

whether they are satisfied that particular income cannot be remitted to the State has a

right to appeal to the Appeal Commissioners by way of notice in writing. An appeal

must be made within 30 days after the date of the notice the decision.

(5)

1005 Unremittable gains

Summary

This section provides that the Revenue Commissioners may postpone payment of

capital gains tax in respect of gains arising abroad where the gains cannot be remitted

to the State due to restrictions in force in the country where the gains accrued.

Details

Definition

“particular gains” are chargeable gains accruing from the disposal of assets situated

outside the State which are the gains or part of the gains on which tax is computed.

(1)

Application

The section applies where the particular gains are included in an assessment for a year

of assessment in which those gains accrued and the tax has not been paid.

(2)

Postponement of payment

The Revenue Commissioners may allow the postponement of payment of the tax

applicable to the particular gains if the taxpayer shows to the satisfaction of the

Commissioners that the gains cannot be remitted to the State owing to legislation or

governmental action in the country in which the gains accrued.

(3)

Information

The Revenue Commissioners may call for any information they consider necessary for

the purposes of the administration of this section.

(4)

Appeals

A person who is dissatisfied with a decision of the Revenue Commissioners as to

whether they are satisfied that particular gains cannot be remitted to the State has a right

to appeal to the Appeal Commissioners by way of notice in writing. An appeal must be

made within 30 days after the date of the notice notification of the decision.

(5)

1006 Poundage and certain other fees due to sheriffs or county registrars

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Summary

This section confirms the entitlement of sheriffs and county registrars to fees or

commission (known as poundage) in the execution of warrants for tax debts without

having to resort to seizure of property when enforcing those debts.

Details

Definitions

“the Acts” means the Tax Acts (Income Tax Acts and Corporation Tax Acts), the

Capital Gains Tax Acts, the Value-Added Tax Consolidation Act 2010 and the

enactments amending or extending that Act, the Capital Acquisitions Tax Consolidation

Act 2003 and the enactments amending or extending that Act, Part VI of the Finance

Act 1983 (which deals with residential property tax) and the enactments amending or

extending that Part, the Finance (Local Property Tax) Act 2012, Part 18A (which relates

to the income levy), Part 18B (which relates to the parking levy in urban areas), Part

18C (which relates to the domicile levy), Part 18D (which relates to the universal social

charge), Part 18E (which relates to defective concrete products levy), Part 22A (which

relates to residential zoned land tax), Part 22B (which relates to vacant homes tax), the

Energy (Windfall Gains in the Energy Sector)(Temporary Solidarity Contribution) Act

2023 (which relates to the Temporary Solidarity Contribution), and also any

instruments made under those Acts.

(1)

“certificate”: under section 960L the Collector-General may issue a certificate to a

county registrar or sheriff in respect of a tax defaulter. Such a certificate has the same

status as an execution order issued by a court.

“county registrar” is a person appointed to be a county registrar under section 35 of the

Court Officers Act, 1926.

“defaulter” is the person specified or certified in an execution order or certificate on

whom an amount of tax or interest on unpaid tax is leviable.

“execution order” is defined in the Enforcement of Court Orders Act, 1926. It means

and includes any writ, decree, warrant, or other document by whatever name called

issued by a court in a civil matter directing or authorising the execution of a court order

by the seizure and sale of a person’s property or by putting a person in possession of

lands or premises or delivering to him/her specific property.

“fees” refers to the poundage fees which are payable under section 14(1) of the

Enforcement of Court Orders Act, 1926 and orders made under that provision for

executing an execution order. It also means the fees corresponding to poundage fees

payable under section 960L for executing a certificate issued by the Collector-General

under that section.

“interest on unpaid tax” is the interest arising under any provision of the Acts providing

for the charging of interest on unpaid tax, including interest on an undercharge of tax

due to fraud or neglect.

“relevant amount” is an amount of tax or interest on unpaid tax.

“tax” means any tax, duty, levy or charge placed under the care and management of the

Revenue Commissioners.

References, as respects an execution order, to a relevant amount include references to

any amount of costs specified in the order.

Notes for Guidance – Taxes Consolidation Act 1997 – Finance Act 2023 Edition - Part 42

Poundage fees

For the section to operate the following conditions must be fulfilled —

(2)

• an execution order or certificate must be lodged with the sheriff or county

registrar,

• the sheriff or county registrar must have given notice to the defaulter of his/her

intention to execute the execution order or certificate by seizing the defaulter’s

property, or have demanded payment by the defaulter of the relevant amount, and

• the defaulter must have paid the sheriff, county registrar or Collector-General all

or part of the amount in default, plus costs where appropriate, after the notice has

been given or demand made by the sheriff or county registrar.

Where these conditions are fulfilled, then, for the purposes of the liability of the

defaulter to poundage, the sheriff or county registrar is deemed to have seized the

defaulter’s property and to have levied the amount paid by the defaulter. In these

circumstances poundage fees are payable by the defaulter to the sheriff or county

registrar in respect of the payment made by the defaulter.

1006A Offset between taxes

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.

1006B Appropriation of payments

This section has been repealed by Schedule 4 to the Finance (No. 2) Act 2008.