Taxes Consolidation Act 1997

968 Judgments for recovery of income tax. [ITA67 s492; FA74 s86 and Sch2 PtI; FA97 s146(1) and Sch9 PtI par1(34)]

968.—(1) In this section, “judgment” includes any order or decree.

(2) Where in any proceedings for the recovery of income tax judgment is given against the person against whom the proceedings are brought and the judgment provides for the arrest and imprisonment of that person, and a sum is accepted on account or in part payment of the amount for which the judgment was given—

(a) such acceptance shall not prevent or prejudice the recovery under the judgment of the balance remaining unpaid of that amount,

(b) the judgment shall be capable of being executed and enforced in respect of the balance as fully in all respects and by the like means as if the balance were the amount for which the judgment was given,

(c) the law relating to the execution and enforcement of the judgment shall apply in respect of the balance accordingly, and

(d) a certificate by a Secretary or an Assistant Secretary of the Revenue Commissioners stating the amount of the balance shall, for the purposes of the enforcement and execution of the judgment, be evidence until the contrary is proved of the amount of the balance.

969 Duration of imprisonment for non-payment of income tax. [ITA67 s493; FA74 s86 and Sch2 PtI]

969.—Where any person is committed to prison by a court of competent jurisdiction for non-payment of a sum of money due to the Minister for Finance for the benefit of the Central Fund in respect of income tax, the Revenue Commissioners are hereby authorised and required at the expiration of 6 months from the date of the committal of such person to prison to order his or her discharge from prison whether the sum for the non-payment of which he or she was so committed has or has not been paid.

970 Recovery of income tax charged on profits not distrainable. [ITA67 s494(1)]

970.—Where income tax is charged on the profits of royalties, markets or fairs, or on tolls, fisheries or any other annual or casual profits not distrainable, the owner or occupier or receiver of those profits shall be answerable for the income tax so charged, and may retain and deduct that tax out of any such profits.

971 Priority of income tax debts over other debts. [ITA67 s482(1) and (2)]

971.—(1) No goods or chattels whatever, belonging to any person at the time any income tax becomes in arrear, shall be liable to be taken by virtue of any execution or other process, warrant or authority whatever, or by virtue of any assignment, on any account or pretence whatever, except at the suit of the landlord for rent, unless the person at whose suit the execution or seizure is made or to whom the assignment was made pays or causes to be paid to the Collector-General before the sale or removal of the goods or chattels all arrears of income tax due at the time of seizure, or payable for the year in which the seizure is made.

(2) Where income tax is claimed for more than one year, the person at whose instance the seizure has been made may, on paying to the Collector-General the income tax which is due for one whole year, proceed in that person's seizure in the like manner as if no income tax had been claimed.

972 Duty of employer as to income tax payable by employees. [ITA67 s484(1) to (4) and (6) and (7); F(MP) A68 s3(3) and Sch PtII; FA96 s132(2) and Sch5 PtII; FA97 s146(1) and Sch9 PtI par1(33)]

972.—(1) Where any employed person has omitted to make payment of any income tax under Schedule D, E or F due and payable by that person for any year, the Revenue Commissioners may give notice to that person's employer at any time after a period of 3 months has elapsed since such income tax became due and payable requiring the employer to deduct the amount of income tax so in arrear from any remuneration payable by the employer to the employed person.

(2) On receipt of the notice, the employer shall deduct such sums, not exceeding in the aggregate the total amount of income tax so in arrear, at such times and in such manner as the Revenue Commissioners may direct and shall forthwith pay over the amounts so deducted to the Collector-General.

(3) Where any employer refuses or neglects to pay over to the Collector-General any sums within the time specified in the notice, the employer shall be liable to pay any such sum as if it had been duly assessed on the employer, and proceedings for the recovery of that sum may be taken in any manner prescribed by the Income Tax Acts, and failure on the part of the employer to deduct any such sum from the employed person shall not be any bar to the recovery of the sum by proceedings.

(4) Where the employer is a body of persons, subsections (3) and (4) of section 897 and subsections (2) and (3) of section 1044 shall apply in relation to anything required to be done under this section.

(5) An employer who pays over to the Collector-General any such sum of income tax as is required by the notice shall be acquitted and discharged of so much money as is represented by the payment as if that sum of money had actually been paid as remuneration to the employed person.

(6) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners.

CHAPTER 2 Corporation tax

973 Collection of corporation tax. [CTA76 s145(1) and (2)]

973.—(1) The Collector-General shall collect and levy the tax from time to time charged on all assessments to corporation tax of which particulars have been transmitted to him or her under section 928(1).

(2) All such powers as are exercisable with respect to the collecting and levying of sums of income tax under Schedule D of which particulars are transmitted under section 928(1) shall extend with respect to sums of corporation tax of which particulars are transmitted under that section.

974 Priority for corporation tax. [CTA76 s145(5)]

974.—The priority attaching to assessed taxes under sections 98 and 285 of the Companies Act, 1963, shall apply to corporation tax.

975 Application of sections 964(2), 980(8) and 981 for purposes of corporation tax. [CTA76 s140(2), s147(1) and (2) and Sch2 PtII par6 and par12]

975.—(1) Subsection (2) of section 964 shall apply in relation to corporation tax as it applies in relation to income tax, and accordingly the reference in that subsection to income tax shall apply as if it was or included a reference to corporation tax.

(2) Section 980(8) shall apply for corporation tax as for capital gains tax, and references to capital gains tax in that section shall apply accordingly as if they were or included references to corporation tax.

(3) Section 981 shall apply for the purposes of corporation tax as it applies for the purposes of capital gains tax.

CHAPTER 3 Capital gains tax

976 Collection of capital gains tax. [CGTA75 s51(1) and Sch4 Pars1(3), 2(1) and 2(2)]

976.—(1) The Collector-General for the time being appointed under section 851 shall collect and levy capital gains tax from time to time charged in all assessments made under the Capital Gains Tax Acts of which particulars have been transmitted to him or her under section 928(1) as applied to capital gains tax by section 931, and the provisions of section 851 relating to the nomination by the Revenue Commissioners of persons to act as the Collector-General or to exercise the powers of the Collector-General shall apply to capital gains tax as they apply to income tax.

(2) The provisions of the Income Tax Acts relating to the collection and recovery of income tax shall, subject to any necessary modifications, apply in relation to capital gains tax as they apply in relation to income tax chargeable under Schedule D.

(3) In particular and without prejudice to the generality of subsection (2), Chapter 1 of this Part (other than sections 960 and 972) shall, subject to any necessary modifications, apply to capital gains tax.

977 Recovery of capital gains tax from shareholder. [CGTA75 s51(1) and Sch4 par17]

977.—(1) In this section, “capital distribution” has the same meaning as in section 583.

(2) This section shall apply where a person (in this section referred to as “the beneficiary”) connected with a company resident in the State receives or becomes entitled to receive in respect of shares in the company any capital distribution from the company, other than a capital distribution representing a reduction of capital, and—

(a) the capital so distributed derives from the disposal of assets in respect of which a chargeable gain accrues to the company, or

(b) the distribution constitutes such a disposal of assets.

(3) Where—

(a) the capital gains tax assessed on the company for the year of assessment in which the chargeable gain referred to in subsection (2) accrues includes any amount in respect of that chargeable gain, and

(b) any of the capital gains tax assessed on the company for that year is not paid within 6 months from the date when it becomes payable by the company,

the beneficiary may by an assessment made within 2 years from that date be assessed and charged (in the name of the company) to an amount of that capital gains tax—

(i) not exceeding the amount or value of the capital distribution which the beneficiary has received or became entitled to receive, and

(ii) not exceeding a proportion equal to the beneficiary's share of the capital distribution made by the company of capital gains tax on the amount of that gain at the rate in force when the gain accrued.

(4) A beneficiary paying any amount of tax under this section shall be entitled to recover a sum equal to that amount from the company.

(5) This section is without prejudice to any liability of the beneficiary receiving or becoming entitled to receive the capital distribution in respect of a chargeable gain accruing to that beneficiary by reference to the capital distribution as constituting a disposal of an interest in shares in the company.

978 Gifts: recovery of capital gains tax from donee. [CGTA75 s51(1) and Sch4 par18]

978.—(1) In this section—

“old asset” and “new asset” have the same meanings respectively as in section 597;

references to a donor include, in the case of an individual who has died, references to his or her personal representatives;

references to a gift include references to any transaction otherwise than by means of a bargain made at arm's length in so far as money or money's worth passes under the transaction without full consideration in money or money's worth, and “donor” and “donee” shall be construed accordingly.

(2) Where—

(a) a chargeable gain accrues in any year of assessment to any person on the disposal of an asset by means of a gift, and

(b) any amount of capital gains tax assessed on that person for that year of assessment is not paid within 12 months from the date when the tax becomes payable,

the donee may by an assessment made not later than 2 years from the date when the tax became payable be assessed and charged (in the name of the donor) to capital gains tax on an amount—

(i) not exceeding the amount of the chargeable gain so accruing, and

(ii) not exceeding such an amount of chargeable gains as would, if charged at the rate provided in section 28(3), result in liability to an amount of capital gains tax equal to that amount of capital gains tax which was not paid by the donor.

(3) Where the gift consists of a new asset, the donee may, in addition to being assessed and charged under subsection (2) in respect of the new asset, be assessed and charged as if the chargeable gain on the disposal of the old asset were a chargeable gain on the disposal of the new asset the capital gains tax in respect of which was not paid within 12 months from the date when the tax had become payable.

(4) (a) Where a person on whom capital gains tax is assessed and charged in respect of the disposal of an asset transfers directly or indirectly by means of a gift to a donee—

(i) the whole of the proceeds of the disposal, or

(ii) in a case where the asset is a new asset acquired by the use of the proceeds of the disposal of an old asset, the whole of the proceeds of the disposal of the new asset,

subsections (2) and (3) shall apply to the amount of capital gains tax so assessed and charged.

(b) Where a person on whom capital gains tax is assessed and charged in respect of the disposal of an asset transfers directly or indirectly by means of a gift to a donee—

(i) part of the proceeds of the disposal, or

(ii) in a case where the asset is a new asset acquired by the use of the proceeds of the disposal of an old asset, part of the proceeds of the disposal of the new asset,

subsections (2) and (3) shall apply to such part of the amount of capital gains tax so assessed and charged as bears to the whole of such tax the same proportion that that part of the proceeds bears to the whole of those proceeds.

(5) The donee of a gift paying any amount of tax in pursuance of this section shall, subject to any terms or conditions of the gift, be entitled to recover a sum of that amount from the donor of the gift as a simple contract debt in any court of competent jurisdiction.

(6) This section shall apply in relation to a gift made to 2 or more donees with any necessary modifications and subject to the condition that each such donee shall be liable to be assessed and charged in respect only of such part of the amount of capital gains tax payable by the donees by virtue of this section as bears to the whole of such tax the same proportion as the part of the gift made to that donee bears to the whole of the gift.

979 Time for payment of capital gains tax assessed under sections 977(3) or 978(2) and (3). [CGTA75 s5(2); FA88 s13(7) (c); FA91 s48]

979.—Capital gains tax assessed on any person under section 977(3) or subsections (2) and (3) of section 978 in respect of gains accruing in any year shall be payable by that person at or before the expiration of 3 months following that year, or at the expiration of a period of 2 months beginning with the date of the making of the assessment, whichever is the later.

980 Deduction from consideration on disposal of certain assets. [CGTA75 s51(1) and Sch4 par11(1) to (10A); FA89 s29; FA95 s76; FA96 s59]

980.—(1) In this section—

“designated area” means an area designated by order under section 2 of the Continental Shelf Act, 1968;

“exploration or exploitation rights” has the same meaning as in section 13;

“shares” includes stock and any security.

(2) This section shall apply to assets that are—

(a) land in the State,

(b) minerals in the State or any rights, interests or other assets in relation to mining or minerals or the searching for minerals,

(c) exploration or exploitation rights in a designated area,

(d) shares in a company deriving their value or the greater part of their value directly or indirectly from assets specified in paragraph (a), (b) or (c), other than shares quoted on a stock exchange,

(e) shares, other than shares quoted on a stock exchange, to which section 584 applies, whether by virtue of that section or any other section, so that, as respects a person disposing of those shares, they are treated as the same shares as shares specified in paragraph (d), acquired as the shares so specified were acquired, and

(f) goodwill of a trade carried on in the State.

(3) This section shall not apply where the amount or value of the consideration in money or money's worth on a disposal does not exceed the sum of £100,000; but if an asset owned at one time by one person, being an asset to which this section would but for this subsection apply, is disposed of by that person in parts—

(a) to the same person, or

(b) to persons who are acting in concert or who are connected persons,

whether on the same or different occasions, the several disposals shall for the purposes of this subsection, but not for any other purpose, be treated as a single disposal.

(4) (a) Subject to paragraph (b), on payment of the consideration for acquiring an asset to which this section applies—

(i) the person by or through whom any such payment is made shall deduct from that payment a sum representing an amount of capital gains tax equal to 15 per cent of that payment,

(ii) the person to whom the payment is made shall allow such deduction on receipt of the residue of the payment, and

(iii) the person making the deduction shall, on proof of payment to the Revenue Commissioners of the amount so deducted, be acquitted and discharged of so much money as is represented by the deduction as if that sum had been actually paid to the person making the disposal.

(b) Where the person disposing of the asset produces to the person acquiring the asset a certificate issued under subsection (8) in relation to the disposal, no deduction referred to in paragraph (a) shall be made.

(5) Where any payment referred to in subsection (4) (a) is made by or on behalf of any person, that person shall forthwith deliver to the Revenue Commissioners an account of the payment and of the amount deducted from the payment, and the inspector shall, notwithstanding any other provision of the Capital Gains Tax Acts, assess and charge that person to capital gains tax for the year of assessment in which the payment was made on the amount of the payment at the rate of 15 per cent.

(6) Where, in relation to any payment referred to in subsection (4) (a), any person has made default in delivering an account required by this section, or where the inspector is not satisfied with the account, the inspector may estimate the amount of the payment to the best of his or her judgment and, notwithstanding section 31, may assess and charge that person to capital gains tax for the year of assessment in which the payment was made on the amount so estimated at the rate of 15 per cent.

(7) Where the amount of capital gains tax assessed and charged under subsection (5) or (6) is paid, appropriate relief shall, on a claim being made in that behalf, be given to the person chargeable in respect of the gain on the disposal, whether by discharge or repayment or otherwise.

(8) A person chargeable to capital gains tax on the disposal of an asset to which this section applies may apply to the inspector for a certificate that tax should not be deducted from the consideration for the disposal of the asset and that the person acquiring the asset should not be required to give notice to the Revenue Commissioners in accordance with subsection (9) (a), and, if the inspector is satisfied that the person making the application is the person making the disposal and that—

(a) that person is resident in the State,

(b) no amount of capital gains tax is payable in respect of the disposal, or

(c) the capital gains tax chargeable for the year of assessment for which that person is chargeable in respect of the disposal of the asset and the tax chargeable on any gain accruing in any earlier year of assessment (not being a year ending earlier than the 6th day of April, 1974) on a previous disposal of the asset has been paid,

the inspector shall issue the certificate to the person making the application and shall issue a copy of the certificate to the person acquiring the asset.

(9) (a) Where—

(i) after the 2nd day of June, 1995, a person acquires an asset to which this section applies and section 978 does not apply,

(ii) the consideration for acquiring the asset is of such a kind that the deduction mentioned in subsection (4) cannot be made out of the consideration, and

(iii) the person disposing of the asset does not, at or before the time at which the acquisition is made, produce to the person acquiring the asset a certificate under subsection (8) in relation to the disposal, the person acquiring the asset shall within 7 days of the time at which the acquisition is made—

(I) notify the Revenue Commissioners of the acquisition in a notice in writing containing particulars of—

(A) the asset acquired,

(B) the consideration for acquiring the asset,

(C) the market value of that consideration estimated to the best of that person's knowledge and belief, and

(D) the name and address of the person making the disposal,

and

(II) pay to the Collector-General an amount of capital gains tax equal to 15 per cent of the market value of the consideration so estimated.

(b) Capital gains tax which by virtue of paragraph (a) (II) is payable by a person acquiring an asset shall—

(i) be payable by that person in addition to any capital gains tax which by virtue of any other provision of the Capital Gains Tax Acts is payable by that person,

(ii) be due within 7 days of the time at which that person acquires the asset, and

(iii) be payable by that person without the making of an assessment;

but tax which has become so due may be assessed on the person acquiring the asset (whether or not it has been paid when the assessment is made) if that tax or any part of that tax is not paid on or before the due date.

(c) Where any person acquiring an asset has in pursuance of paragraph (a) (II) paid any amount of capital gains tax by reference to the market value of the consideration for acquiring the asset, that person shall be entitled to recover a sum of that amount from the person disposing of the asset as a simple contract debt in any court of competent jurisdiction; but where a copy of a certificate under subsection (8) is issued to the person acquiring the asset, being a copy of a certificate in relation to the disposal by which the person acquired the asset, that person—

(i) shall not be entitled thereafter to so recover that sum, and

(ii) shall be repaid that amount of tax.

(d) This section shall apply in relation to the acquisition of an asset by 2 or more persons with any necessary modifications and subject to the condition that each such person shall be liable to be assessed and charged in respect only of such part of the amount of capital gains tax payable by those persons by virtue of paragraph (b) as bears to the whole of such tax the same proportion as the part of the asset acquired by that person bears to the whole of the asset.

(10) Notwithstanding sections 979 and 1042, where an amount of capital gains tax is assessed and charged pursuant to this section, such amount shall be due and payable on the day after the day on which the assessment is made.

(11) (a) Subject to paragraph (b), where there is a disposal of assets by virtue of a capital sum being derived from those assets, the person paying the capital sum shall, notwithstanding that no asset is acquired by that person, be treated for the purposes of this section as acquiring the assets disposed of for a consideration equal to the capital sum, whether that sum is paid in money or money's worth, and this section shall, subject to any necessary modifications, apply accordingly.

(b) Paragraph (a) shall not apply where there is a disposal of an asset by virtue of a capital sum being derived from the asset under a policy of insurance of the risk of any kind of damage to the asset.

981 Payment by instalments where consideration due after time of disposal. [CGTA75 s44(1)]

981.—Where the consideration or part of the consideration taken into account in the computation of a chargeable gain is payable by instalments over a period beginning not earlier than the time when the disposal is made, being a period exceeding 18 months, then, if the person making the disposal satisfies the Revenue Commissioners that such person would otherwise suffer undue hardship, the capital gains tax on such a chargeable gain accruing on a disposal may, at such person's option, be paid by such instalments as the Revenue Commissioners may allow over a period not exceeding 5 years and ending not later than the time at which the last of the first-mentioned instalments is payable.

982 Preferential payment. [CGTA75 s51(1) and Sch4 par15]

982.—The priority attaching to assessed taxes under section 81 of the Bankruptcy Act, 1988, and sections 98 and 285 of the Companies Act, 1963, shall apply to capital gains tax.

CHAPTER 4 Collection and recovery of income tax on certain emoluments (PAYE system)

983 Interpretation (Chapter 4). [ITA67 s124]

983.—In this Chapter, except where the context otherwise requires—

“emoluments” means anything assessable to income tax under Schedule E, and references to payments of emoluments include references to payments on account of emoluments;

“employee” means any person in receipt of emoluments;

“employer” means any person paying emoluments;

“income tax month” means a month beginning on the 6th day of any of the months of April to March in any year of assessment;

“tax deduction card” means a tax deduction card in the form prescribed by the Revenue Commissioners or such other document corresponding to a tax deduction card as may be authorised by the Revenue Commissioners in any particular case.

984 Application. [ITA67 s125; FA85 s6(1) and (2)]

984.—(1) This Chapter shall apply to all emoluments except emoluments which are emoluments in respect of which the employer has been notified by the inspector that they are emoluments which arise from an office or employment and from which, in the opinion of the inspector, having regard to the circumstances of the office or employment or to the amount of the emoluments, the deduction of tax by reference to this Chapter is impracticable.

(2) The inspector may, if a change in the circumstances of the office or employment or in the amount of the emoluments so warrants, cancel a notification given under subsection (1) by notice in writing given to the employer, and this Chapter shall then apply to payments of emoluments arising from the office or employment made after the date of such notice.

(3) Any notice issued by or on behalf of the Revenue Commissioners under section 125 of the Income Tax Act, 1967, before the 6th day of April, 1986, shall not have effect in relation to emoluments arising in the year 1997-98 or any subsequent year of assessment.

985 Method of collection. [ITA67 s126; FA72 s46(1) and Sch4 PtI]

985.—On the making of any payment of any emoluments to which this Chapter applies, income tax shall, subject to this Chapter and in accordance with regulations under this Chapter, be deducted or repaid by the person making the payment notwithstanding that—

(a) when the payment is made no assessment has been made in respect of the emoluments, or

(b) the emoluments are in whole or in part emoluments for some year of assessment other than that during which the payment is made.

986 Regulations. [ITA67 s127(1), (2), (3) (a) (i) and (b) (part of), (4), (5) and (7); FA72 s2(1); FA74 s11 and Sch1 PtII; FA93 s2(2) and Sch1 PtI par2; FA97 s6]

986.—(1) The Revenue Commissioners shall make regulations with respect to the assessment, charge, collection and recovery of income tax in respect of emoluments to which this Chapter applies or of income tax for any previous year of assessment remaining unpaid, and those regulations may, in particular and without prejudice to the generality of the foregoing, include provision—

(a) for requiring any employer making any payment of emoluments to which this Chapter applies, when that employer makes the payment, to make a deduction or repayment of tax calculated by reference to such rate or rates of tax for the year as may be specified and any allowances, deductions and reliefs appropriate in the case of the employee as indicated by the particulars on the tax deduction card supplied in respect of the employee by the Revenue Commissioners;

(b) for rendering persons who are required to make any such deduction or repayment, in the case of a deduction (whether or not made), accountable for the amount of the tax and liable to pay that amount to the Revenue Commissioners and, in the case of a repayment, entitled (if a repayment has been made) to be paid it, or given credit for it, by the Revenue Commissioners;

(c) for the production to and inspection by persons authorised by the Revenue Commissioners of wages sheets and other documents and records for the purpose of satisfying themselves that tax in respect of emoluments to which this Chapter applies has been and is being duly deducted, repaid and accounted for;

(d) for the collection and recovery, whether by deduction from emoluments paid in any year or otherwise, of tax in respect of emoluments to which this Chapter applies which has not been deducted or otherwise recovered during the year;

(e) for appeals with respect to matters arising under the regulations which would not otherwise be the subject of an appeal;

(f) for the deduction of tax at the standard rate and at the higher rate in such cases or classes of cases as may be provided for by the regulations;

(g) for requiring any employer making any payment of emoluments to which this Chapter applies, when making a deduction or repayment of tax in accordance with this Chapter and regulations under this Chapter, to make such deduction or repayment as would require to be made if the amount of emoluments were the emoluments reduced by the amount of any contributions payable by the employee and deductible by the employer from the emoluments being paid and which by virtue of Chapter 1 of Part 30 are for the purposes of assessment under Schedule E allowed as a deduction from the emoluments;

(h) for requiring every employer who pays emoluments to which this Chapter applies exceeding the limit specified in subsection (5) to notify the Revenue Commissioners within the period specified in the regulations that that employer is such an employer;

(i) for requiring every employer who pays emoluments to which this Chapter applies exceeding the limits specified in subsection (5) to keep and maintain a register of that employer's employees in such manner as may be specified in the regulations and, on being required to do so by the Revenue Commissioners, to deliver the register to the Revenue Commissioners within the period specified in the notice;

(j) for treating persons who are not employers as employers in such cases or classes of cases as may be provided for by the regulations.

(2) Regulations under this section shall apply notwithstanding anything in the Income Tax Acts, but shall not affect any right of appeal which a person would have apart from the regulations.

(3) (a) Tax deduction cards shall be prepared with a view to securing that in so far as may be practicable the total tax payable for the year of assessment in respect of any emoluments is deducted from the emoluments paid during that year.

(b) In paragraph (a), any reference to the total tax payable for a year shall be construed as a reference to the total tax estimated to be payable for the year in respect of the emoluments, subject to a provisional deduction for allowances and reliefs and subject also, if necessary, to making an addition to that estimated amount (including a nil amount) for amounts remaining unpaid on account of income tax for any previous year of assessment and to making a deduction from that estimated amount for amounts overpaid on account of any such income tax.

(4) Notwithstanding any other provision of this section, when stating on a tax deduction card an amount in respect of allowances, deductions and reliefs the amount may be rounded up to a convenient greater amount and stated accordingly, and, as respects the amount of tax which is not deducted in the year of assessment as a result of such statement, the adjustment appropriate for its recovery shall be made in a subsequent year of assessment.

(5) (a) The limits referred to in paragraphs (h) and (i) of subsection (1) shall be emoluments at a rate equivalent to a rate of £6 per week, or in the case of an employee with other employment, £1 per week.

(b) In the case of employees paid monthly or at longer intervals, the references in paragraph (a) to a rate of £6 per week and a rate of £1 per week shall be treated as references to a rate of £26 per month and a rate of £4.50 per month respectively.

(6) (a) In this subsection—

“domestic employee” means an employee who is employed solely on domestic duties (including the minding of children) in the employer's private dwelling house;

“domestic employment” means employment by reference to which an employee is a domestic employee.

(b) Notwithstanding subsection (5), as on and from the 6th day of June, 1997, regulations made in accordance with paragraphs (h) and (i) of subsection (1) shall not apply to an employer (being an individual) who pays emoluments to an employee engaged by that employer in a domestic employment where—

(i) the emoluments from that employment are less than £30 per week, and

(ii) the employer has only one such employee.

(7) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

987 Penalties for breach of regulations. [ITA67 s128(1), (1A), (2) and (4); FA72 s2(2); FA73 s43; FA76 s1; FA81 s4; FA82 s60; FA92 s234 and s248]

987.—(1) Where any person does not comply with any provision of regulations under this Chapter requiring that person to send any return, statement, notification or certificate or to remit income tax to the Collector-General or fails to make any deduction or repayment in accordance with any regulation made pursuant to section 986(1)(g), that person shall be liable to a penalty of £1,200.

(2) Where the person mentioned in subsection (1) is a body of persons, the secretary of the body shall be liable to a separate penalty of £750.

(3) All penalties for failure to comply with any provision of regulations under this Chapter may, without prejudice to any other method of the recovery, be proceeded for and recovered summarily in the like manner as in summary proceedings for the recovery of any fine or penalty under any Act relating to the excise.

(4) In proceedings for recovery of a penalty under this section—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that he or she has inspected the relevant records of the Revenue Commissioners and that it appears from them that during a stated period—

(i) a stated return, statement, notification or certificate was not received from the defendant,

(ii) stated wages sheets or other records or documents were not produced by the defendant,

(iii) the defendant did not remit stated tax to the Collector-General, or

(iv) the defendant did not make a stated deduction or repayment of tax,

shall be evidence until the contrary is proved that the defendant did not during that period send that return, statement, notification or certificate or did not produce those wages sheets or other records or documents or did not remit that tax to the Collector-General or did not make that deduction or repayment of tax;

(b) a certificate signed by an officer of the Revenue Commissioners which certifies that he or she has inspected the relevant records of the Revenue Commissioners and that it appears from them that a stated return or other document was duly sent to the defendant on a stated day shall be evidence until the contrary is proved that that person received that return or other document in the ordinary course;

(c) a certificate signed by an officer of the Revenue Commissioners which certifies that he or she has inspected the relevant records of the Revenue Commissioners and that it appears from them that during a stated period the defendant was an employer or a person whose name and address were registered in the register kept and maintained under regulation 8(4) of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), shall be evidence until the contrary is proved that the defendant was during that period an employer or, as the case may be, a person whose name and address were so registered;

(d) a certificate certifying as provided for in paragraph (a), (b) or (c) and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

988 Registration of certain persons as employers and requirement to send certain notifications. [FA74 s72]

988.—(1) Where the Revenue Commissioners have reason to believe that a person is liable to send them a notification under regulation 8 of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), and has not done so, they may register that person's name and address in the register kept and maintained under paragraph (4) of that regulation (in this section referred to as “the register”) and serve a notice on that person stating that that person has been so registered.

(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply:

(a) if the person claims to be not liable to send the notification referred to in subsection (1), the person may, by giving notice in writing to the Revenue Commissioners within the period of 14 days from the service of the notice under subsection (1), require the claim to be referred to the Appeal Commissioners and their decision on the claim shall be final and conclusive;

(b) if no such claim is, within the time specified in paragraph (a), required to be referred, or if such claim is required to be referred and there is a determination by the Appeal Commissioners against the appellant, the appellant shall be regarded for the purposes of the Regulations referred to in subsection (1) as an employer who had sent a notification under paragraph (1) of regulation 8 of those Regulations;

(c) if a claim is required to be referred and there is a determination by the Appeal Commissioners in favour of the appellant, the Revenue Commissioners shall on that determination delete the appellant's name and address from the register.

(3) (a) Where a person whose name and address is registered in the register is not liable, under regulation 31 of the Regulations referred to in subsection (1), to remit to the Collector-General any amount of tax for an income tax month, such person shall, within the period of 9 days from the end of that month, make a declaration to that effect in a form prescribed by the Revenue Commissioners and shall send that form to the Collector-General.

(b) Where a person whose name and address is registered in the register ceases to pay emoluments to which this Chapter applies, such person shall, within the period of 14 days from the date on which such person ceased to pay such emoluments, notify the Revenue Commissioners to that effect.

(4) Section 987 shall apply to a non-compliance with subsection (3) as it applies to a non-compliance with regulations under this Chapter.

989 Estimation of tax due for income tax months. [FA68 s7(1), (2), (4), (5) and (8); FA85 s9(a)]

989.—(1) In this section and in sections 990 and 991, “the regulations” means any regulations under section 986.

(2) Where the Revenue Commissioners have reason to believe that a person was liable under the regulations to remit income tax in relation to any income tax month, and the person has not remitted any income tax in relation to that income tax month, they may—

(a) estimate the amount of tax which should have been remitted by the person within the period specified in the regulations for the payment of such tax, and

(b) serve notice on the person of the amount so estimated.

(3) Where a notice is served under subsection (2) on a person, the following provisions shall apply:

(a) the person, if claiming to be not liable to remit any tax for the income tax month to which the notice relates, may by giving notice in writing to the Revenue Commissioners within the period of 14 days from the service of the notice require the claim to be referred for decision to the Appeal Commissioners and their decision shall be final and conclusive;

(b) on the expiration of that period, if no such claim is required to be so referred or, if such claim is required to be referred, on final determination by the Appeal Commissioners against the claim, the estimated tax specified in the notice shall be recoverable in the like manner and by the like proceedings as if—

(i) the person were an employer, and

(ii) the amount specified in the notice were the amount of tax which the person was liable under the regulations to deduct from emoluments paid by the person during the income tax month specified in the notice reduced by any amounts which the person was liable under the regulations to repay during the income tax month;

(c) if at any time after the service of the notice the person furnishes a declaration of the amount which the person is liable under the regulations to remit in respect of the income tax month specified in the notice and pays the tax in accordance with the declaration together with any interest and costs which may have been incurred in connection with the default, the notice shall, subject to paragraph (d), stand discharged and any excess of tax which may have been paid shall be repaid;

(d) where action for the recovery of tax specified in a notice under subsection (2) has been taken, being action by means of the institution of proceedings in any court or the issue of a certificate under section 962, paragraph (c) shall not, unless the Revenue Commissioners otherwise direct, apply in relation to that notice until that action has been completed.

(4) A notice given by the Revenue Commissioners under subsection (2) may extend to 2 or more consecutive income tax months.

(5) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners.

990 Estimation of tax due for year. [FA68 s8(1), (2) and (4); FA85 s9(b)]

990.—(1) Where the inspector or such other officer as the Revenue Commissioners may nominate to exercise the powers conferred by this section (in this section referred to as “other officer”) has reason to believe that the total amount of tax which an employer was liable under the regulations to remit in respect of the respective income tax months comprised in any year of assessment was greater than the amount of tax (if any) paid by the employer in respect of those months, then, without prejudice to any other action which may be taken, the inspector or other officer—

(a) may make an estimate in one sum of the total amount of tax which in his or her opinion should have been paid in respect of the income tax months comprised in that year, and

(b) may serve notice on the employer specifying—

(i) the total amount of tax so estimated,

(ii) the total amount of tax (if any) remitted by the employer in relation to the income tax months comprised in that year, and

(iii) the balance of tax remaining unpaid.

(2) Where a notice is served on an employer under subsection (1)—

(a) the employer may, if claiming that the total amount of tax or the balance of tax remaining unpaid is excessive, on giving notice in writing to the inspector or other officer within the period of 30 days from the service of the notice, appeal to the Appeal Commissioners;

(b) on the expiration of that period, if no notice of appeal is received or, if notice of appeal is received, on determination of the appeal by agreement or otherwise, the balance of tax remaining unpaid as specified in the notice or the amended tax as determined in relation to the appeal shall become due and be recoverable in the like manner and by the like proceedings as if the balance of tax or the amended tax had been charged on the employer under Schedule E.

(3) A notice given by the inspector or other officer under subsection (1) may extend to 2 or more years of assessment.

991 Interest. [ITA67 s129; FA68 s9; FA73 s1(1); FA74 s71; FA75 s26; FA78 s46]

991.—(1) Where any amount of tax which an employer is liable under this Chapter and any regulations under this Chapter to pay to the Revenue Commissioners is not so paid, simple interest on the amount shall be paid by the employer to the Revenue Commissioners, and such interest shall be calculated from the expiration of the period specified in the regulations for the payment of the amount and at the rate of 1.25 per cent for each month or part of a month during which the amount remains unpaid; but, if the amount of the interest as so calculated is less than £5, the amount of interest payable shall be £5.

(2) This section shall apply—

(a) to tax recoverable by virtue of a notice under section 989 as if the tax were tax which the person was liable under the regulations to pay for the respective income tax month or months referred to in the notice, and

(b) to tax recoverable by virtue of a notice under section 990 as if the tax were tax which the person was liable under the regulations to remit for the last income tax month of the year of assessment to which the notice relates.

992 Appeals against estimates under section 989 or 990. [FA68 s10]

992.—The provisions of the Income Tax Acts relating to appeals shall apply with any necessary modifications to claims and appeals under sections 989(3) and 990(2) as if those claims or appeals were appeals against assessments to income tax but, in relation to claims under section 989(3), only in so far as those provisions apply to appeals to the Appeal Commissioners.

993 Recovery of tax. [ITA67 s131; FA73 s22]

993.—(1) (a) The provisions of any enactment relating to the recovery of income tax charged under Schedule E shall apply to the recovery of any amount of tax which an employer is liable under this Chapter and any regulations under this Chapter to pay to the Revenue Commissioners by reference to any income tax month as if that amount had been charged on the employer under Schedule E.

(b) In particular and without prejudice to the generality of paragraph (a), this subsection applies sections 962, 963, 966 and 998.

(c) Provisions as applied by this subsection shall so apply subject to any modifications specified by regulations under section 986.

(2) Proceedings may be brought for the recovery of the total amount which the employer is liable under this Chapter and any regulations under this Chapter to pay to the Revenue Commissioners by reference to any income tax month without distinguishing the amounts which the employer is liable to pay by reference to each employee and without specifying the employees in question, and for the purposes of the proceedings that total amount shall be one single cause of action or one matter of complaint; but nothing in this subsection shall prevent the bringing of separate proceedings for the recovery of each of the several amounts which the employer is so liable to pay by reference to any income tax month and to the employer's several employees.

(3) In proceedings instituted by virtue of this section for the recovery of any amount of tax—

(a) a certificate signed by an officer of the Revenue Commissioners which certifies that a stated amount of tax is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable, and

(b) a certificate so certifying and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(4) Any reference in this section to an amount of tax shall include a reference to interest payable in the case in question under section 991.

(5) This section shall apply to the recovery of—

(a) any amount of tax estimated under section 989, and

(b) any amount of tax estimated under section 990 or any balance of tax so estimated but remaining unpaid,

as if the amount so estimated or the balance of tax so estimated but remaining unpaid were an amount of tax which any person paying emoluments was liable under this Chapter and any regulations under this Chapter to pay to the Revenue Commissioners.

994 Priority in bankruptcy, etc. of certain amounts. [ITA67 s132]

994.—(1) In this section, “employer's liability for the period of 12 months” means all sums which an employer was liable under this Chapter and any regulations under this Chapter to deduct from emoluments to which this Chapter applies paid by the employer during the period of 12 months mentioned in subsection (2), reduced by any amounts which the employer was liable under this Chapter and any regulations under this Chapter to repay during the same period, and subject to the addition of interest payable under section 991.

(2) There shall be included among the debts which under section 81 of the Bankruptcy Act, 1988, are to be paid in priority to all other debts in the distribution of the property of a bankrupt, arranging debtor or person dying insolvent so much as is unpaid of the employer's liability for the period of 12 months before the date on which the order of adjudication of the bankrupt was made, the petition of arrangement of the debtor was filed or, as the case may be, the person died insolvent.

995 Priority in winding up of certain amounts. [FA89 s10]

995.—For the purposes of subsection (2) (a) (iii) of section 285 of the Companies Act, 1963—

(a) the amount referred to in that subsection shall be deemed to include any amount—

(i) which, apart from regulation 31A of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960), would otherwise have been an amount due at the relevant date in respect of sums which an employer is liable under this Chapter and any regulation under this Chapter (other than regulation 31A of those Regulations) to deduct from emoluments, to which this Chapter applies, paid by the employer during the period of 12 months next before the relevant date,

(ii) reduced by any amount which the employer was liable under this Chapter and any regulation under this Chapter to repay during that period, and

(iii) with the addition of any interest payable under section 991,

and

(b) the relevant date shall, notwithstanding subsection (1) of section 285 of the Companies Act, 1963, be deemed to be the date which is the ninth day after the end of the income tax month in which the relevant date (within the meaning of that subsection) occurred.

996 Treatment for tax purposes of certain unpaid remuneration. [FA76 s17(1) to (3)(a) and (4)(b)]

996.—(1) In this section—

“accounting period”, in relation to a trade or profession, means a period of 12 months ending on the date up to which the accounts of the trade or profession are usually made up and, where accounts of the trade or profession have not been made up, such period not exceeding 12 months as the Revenue Commissioners may determine;

“date of cessation”, in relation to an office or employment, means the date on which a person ceases to hold the office or employment;

“date of commencement”, in relation to an office or employment, means the date on which a person commences to hold the office or employment;

“period of account”, in relation to a trade or profession, means any period, other than an accounting period, for which the accounts of the trade or profession have been made up;

“period of accrual”, in relation to remuneration in respect of an office or employment in a trade or profession, means the period beginning on the later of—

(a) the first day of an accounting period, or period of account, of the trade or profession, or

(b) the date of commencement of the office or employment

and ending on the earlier of—

(i) the last day of an accounting period, or period of account, or

(ii) the date of cessation of the office or employment;

“relevant date” means—

(a) in relation to an accounting period, the last day of the period, and

(b) in relation to a period of account—

(i) where the period of account is less than 12 months, the last day of the period, and

(ii) where the period of account is more than 12 months, each 5th day of April within the period and the last day of the period;

“remuneration” includes all salaries, fees, wages, perquisites or profits whatever from an office or employment.

(2) Where remuneration (in this section referred to as “unpaid remuneration”) which is deductible as an expense in computing the profits or income of a trade or profession for an accounting period or period of account for the purposes of Schedule D is unpaid at a relevant date—

(a) the unpaid remuneration shall be deemed to be emoluments to which this Chapter applies and shall be deemed to have been paid in accordance with subsection (3), and

(b) this Chapter and the regulations made under this Chapter shall, with any necessary modifications, apply to the unpaid remuneration as if it had been so paid.

(3) Unpaid remuneration shall be deemed to have accrued from day to day throughout the period of accrual and there shall be deemed to have been paid on each relevant date so much of that remuneration as accrued up to that date or, if it is earlier, the date of cessation of the office or employment in respect of which the unpaid remuneration is payable—

(a) where there was no preceding relevant date, from the beginning of the period of accrual or, if it is later, the date of commencement of the office or employment in respect of which the unpaid remuneration is payable, and

(b) where there was a preceding relevant date, from the day following that date or, if it is later, the date of commencement of the office or employment in respect of which the unpaid remuneration is payable.

(4) This section shall not apply to unpaid remuneration paid before—

(a) the date of expiry of 6 months after the date (in this subsection referred to as “the deemed date”) on which that remuneration is by virtue of subsection (3) deemed to have been paid, or

(b) in the case where the period of account is one of more than 12 months, the date of expiry of 18 months from the first day of that period of account if the date of expiry is later than the deemed date.

997 Supplementary provisions (Chapter 4). [ITA67 s133; FA74 s11 and Sch1 PtII; FA93 s2(2) and Sch1 PtI par2]

997.—(1) No assessment under Schedule E for any year of assessment need be made in respect of emoluments to which this Chapter applies except where—

(a) the person assessable, by notice in writing given to the inspector within 5 years from the end of the year of assessment, requires an assessment to be made,

(b) the emoluments paid in the year of assessment are not the same in amount as the emoluments which are to be treated as the emoluments for that year, or

(c) there is reason to suppose that the emoluments would, if assessed, be taken into account in computing the total income of a person who is liable to tax at the higher rate or would be so liable if an assessment were made in respect of the emoluments;

but where any such assessment is made credit shall be given for the amount of any tax deducted or estimated to be deductible from the emoluments.

(2) Where an employer pays to the Revenue Commissioners any amount of tax which, pursuant to this Chapter and any regulations under this Chapter, the employer has deducted from emoluments, the employer shall be acquitted and discharged of the sum represented by the payment as if the employer had actually paid that sum to the employee.

CHAPTER 5 Miscellaneous provisions

998 Recovery of moneys due. [ITA67 s491; FA74 s86 and Sch2 PtI; CTA76 s147(1) and (2); CGTA75 s51(1) and Sch4 par2]

998.—(1) Every sum due in respect of income tax, corporation tax and capital gains tax and every fine, penalty or forfeiture incurred in connection with any of those taxes shall be deemed to be a debt due to the Minister for Finance for the benefit of the Central Fund, and shall be payable to the Revenue Commissioners and may (without prejudice to any other mode of recovery of such sum, fine, penalty or forfeiture) be sued for and recovered by action, or other appropriate proceedings, at the suit of the Attorney General in any court of competent jurisdiction.

(2) Moneys so due or payable to or for the benefit of the Central Fund shall have attached to them all such rights, privileges and priorities as have heretofore attached to such moneys, but this subsection shall not operate to make such moneys payable in priority to other debts.

999 Taking by Collector-General of proceedings in bankruptcy. [F(MP) A68 s27; CGTA75 s51(1) and Sch4 par2]

999.—(1) The Collector-General may sue out a debtor's summons and present a petition in bankruptcy in his or her own name in respect of taxes or duties due to the Minister for Finance for the benefit of the Central Fund, being taxes or duties which the Collector-General is empowered to collect and levy.

(2) Subject to this section, the rules of court for the time being applicable and the enactments relating to bankruptcy shall apply to proceedings taken by the Collector-General by virtue of this section.

1000 Priority in bankruptcy, winding up, etc. for sums recovered or deducted under sections 531, 989 or 990. [FA68 s11; FA76 s14]

1000.—For the purposes of section 285 of the Companies Act, 1963, and of section 994, the sums referred to in section 285(2) (a) (iii) of the Companies Act, 1963, and in section 994(1) shall be deemed to include—

(a) amounts of tax deducted under section 531(1) and amounts of tax recoverable under regulation 12 of the Income Tax (Construction Contracts) Regulations, 1971 (S.I. No. 1 of 1971),

(b) amounts of tax recoverable under section 989, and

(c) amounts of tax recoverable under section 990,

which relate to a period or periods falling in whole or in part within the period of 12 months referred to in section 285(2) (a) (iii) of the Companies Act, 1963, or in section 994(1), as may be appropriate, and in the case of any such amount for a period falling partly within and partly outside whichever of those periods of 12 months is appropriate, it shall be lawful to apportion the total sum or amount according to the respective lengths of the periods falling within the period of 12 months and outside the period of 12 months in order to determine the amount of tax which relates to the period of 12 months.

1001 Liability to tax, etc. of holder of fixed charge on book debts of company. [FA86 s115; FA95 s174]

1001.—(1) In this section, “relevant amount” means any amount which the company is liable to remit under—

(a) Chapter 4 of this Part, and

(b) the Value-Added Tax Act, 1972.

(2) Subject to this section, where a person holds a fixed charge (being a fixed charge created on or after the 27th day of May, 1986) on the book debts of a company (within the meaning of the Companies Act, 1963), such person shall, if the company fails to pay any relevant amount for which it is liable, become liable to pay such relevant amount on due demand, and on neglect or refusal of payment may be proceeded against in the like manner as any other defaulter.

(3) This section shall not apply—

(a) unless the holder of the fixed charge has been notified in writing by the Revenue Commissioners that a company has failed to pay a relevant amount for which it is liable and that by virtue of this section the holder of the fixed charge—

(i) may become liable for payment of any relevant amount which the company subsequently fails to pay, and

(ii) where paragraph (c) does not apply, has become liable for the payment of the relevant amount which the company has failed to pay,

(b) to any amounts received by the holder of the fixed charge from the company before the date on which the holder is notified in writing by the Revenue Commissioners in accordance with paragraph (a), and

(c) where, within the period from the 2nd day of June, 1995, to the 22nd day of June, 1995, or within 21 days of the creation of the fixed charge, whichever is the later, the holder of the fixed charge furnishes to the Revenue Commissioners a copy of the prescribed particulars of the charge delivered or to be delivered to the registrar of companies in accordance with section 99 of the Companies Act, 1963, to any relevant amount which the company was liable to pay before the date on which the holder is notified in writing by the Revenue Commissioners in accordance with paragraph (a).

(4) The amount or aggregate amount which a person shall be liable to pay in relation to a company in accordance with this section shall not exceed the amount or aggregate amount which the person has, while the fixed charge on book debts in relation to the company is in existence, received directly or indirectly from that company in payment or in part payment of any debts due by the company to the person.

(5) The Revenue Commissioners may, at any time and by notice in writing given to the holder of the fixed charge, withdraw with effect from a date specified in the notice a notification issued by them in accordance with subsection (3); but such withdrawal shall not—

(a) affect in any way any liability of the holder of the fixed charge under this section which arose before such withdrawal, or

(b) preclude the issue under subsection (3) of a subsequent notice to the holder of the fixed charge.

(6) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners.

1002 Deduction from payments due to defaulters of amounts due in relation to tax. [FA88 s73(1) (b) to (16) and (18); FA92 s241(a) to (d)]

1002.—(1) (a) In this section, except where the context otherwise requires—

“the Acts” means—

(i) the Customs Acts,

(ii) the statutes relating to the duties of excise and to the management of those duties,

(iii) the Tax Acts,

(iv) the Capital Gains Tax Acts,

(v) the Value-Added Tax Act, 1972, and the enactments amending or extending that Act,

(vi) the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act, and

(vii) the Stamp Act, 1891, and the enactments amending or extending that Act,

and any instruments made thereunder;

“additional debt”, in relation to a relevant person who has received a notice of attachment in respect of a taxpayer, means any amount which, at any time after the time of the receipt by the relevant person of the notice of attachment but before the end of the relevant period in relation to the notice, would be a debt due by the relevant person to the taxpayer if a notice of attachment were received by the relevant person at that time;

“debt”, in relation to a notice of attachment given to a relevant person in respect of a taxpayer and in relation to that relevant person and taxpayer, means, subject to paragraphs (b) to (e), 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 (whether on that person's own account or as an agent or trustee) to the taxpayer, irrespective of whether the taxpayer has applied for the payment (to the taxpayer or any other person) or for the withdrawal of all or part of the money;

“deposit” means a sum of money paid to a financial institution on terms under which it will 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 which it is made;

“emoluments” means anything assessable to income tax under Schedule E;

“financial institution” means a holder of a licence issued under section 9 of the Central Bank Act, 1971, or a person referred to in section 7(4) of that Act, and includes a branch of a financial institution which records deposits in its books as liabilities of the branch;

“further return” means a return made by a relevant person under subsection (4);

“interest on unpaid tax”, in relation to a specified amount specified in a notice of attachment, means interest that has accrued to the date on which the notice of attachment is given under any provision of the Acts providing for the charging of interest in respect of the unpaid tax, including interest on an undercharge of tax which is attributable to fraud or neglect, specified in the notice of attachment;

“notice of attachment” means a notice under subsection (2);

“notice of revocation” means a notice under subsection (10);

“penalty” means a monetary penalty imposed on a taxpayer under a provision of the Acts;

“relevant period”, in relation to a notice of attachment, means, as respects the relevant person to whom the notice of attachment is given, the period commencing at the time at which the notice is received by the relevant person and ending on the earliest of—

(i) the date on which the relevant person completes the payment to the Revenue Commissioners out of the debt, or the aggregate of the debt and any additional debt, due by the relevant person to the taxpayer named in the notice, of an amount equal to the specified amount in relation to the taxpayer,

(ii) the date on which the relevant person receives a notice of revocation of the notice of attachment, and

(iii) where the relevant person or the taxpayer named in the notice—

(I) is declared bankrupt, the date the relevant person or the taxpayer is so declared, or

(II) is a company which commences to be wound up, the relevant date within the meaning of section 285 of the Companies Act, 1963, in relation to the winding up;

“relevant person”, in relation to a taxpayer, means a person whom the Revenue Commissioners have reason to believe may have, at the time a notice of attachment is received by such person in respect of a taxpayer, a debt due to the taxpayer;

“return” means a return made by a relevant person under subsection (2) (a) (iii);

“specified amount” has the meaning assigned to it by subsection (2) (a) (ii);

“tax” means any tax, duty, levy or charge which in accordance with any provision of the Acts is placed under the care and management of the Revenue Commissioners;

“taxpayer” means a person who is liable to pay, remit or account for tax to the Revenue Commissioners under the Acts.

(b) Where a relevant person is a financial institution, any amount or aggregate amount of money, including interest on that money, which at the time the notice of attachment is received by the relevant person is a deposit held by the relevant person—

(i) to the credit of the taxpayer for the taxpayer's sole benefit, or

(ii) to the credit of the taxpayer and any other person or persons for their joint benefit,

shall be regarded as a debt due by the relevant person to the taxpayer at that time.

(c) Any amount of money due by the relevant person to the taxpayer as emoluments under a contract of service shall not be regarded as a debt due to the taxpayer.

(d) Where there is a dispute as to an amount of money which is due by the relevant person to the taxpayer, the amount in dispute shall be disregarded for the purposes of determining the amount of the debt.

(e) In the case referred to in paragraph (b), a deposit held by a relevant person which is a financial institution to the credit of the taxpayer and any other person or persons (in this paragraph referred to as “the other party or parties”) for their joint benefit shall be deemed (unless evidence to the contrary is produced to the satisfaction of the relevant person within 10 days of the giving of the notices specified in subsection (2) (e)) to be held to the benefit of the taxpayer and the other party or parties to the deposit equally, and accordingly only the portion of the deposit so deemed shall be regarded as a debt due by the relevant person to the taxpayer at the time the notice of attachment is received by the relevant person and, where such evidence is produced within the specified time, only so much of the deposit as is shown to be held to the benefit of the taxpayer shall be regarded as a debt due by the relevant person to the taxpayer at that time.

(2) (a) Subject to subsection (3), where a taxpayer has made default whether before or after the passing of this Act in paying, remitting or accounting for any tax, interest on unpaid tax, or penalty to the Revenue Commissioners, the Revenue Commissioners may, if the taxpayer has not made good the default, give to a relevant person in relation to the taxpayer a notice in writing (in this section referred to as “the notice of attachment”) in which is entered—

(i) the taxpayer's name and address,

(ii) (I) the amount or aggregate amount, or

(II) in a case where more than one notice of attachment is given to a relevant person or relevant persons in respect of a taxpayer, a portion of the amount or aggregate amount,

of the taxes, interest on unpaid taxes and penalties in respect of which the taxpayer is in default at the time of the giving of the notice or notices of attachment (the amount, aggregate amount, or portion of the amount or aggregate amount, as the case may be, being referred to in this section as “the specified amount”), and

(iii) a direction to the relevant person—

(I) subject to paragraphs (b) and (c), to deliver to the Revenue Commissioners, within the period of 10 days from the time at which the notice of attachment is received by the relevant person, a return in writing specifying whether or not any debt is due by the relevant person to the taxpayer at the time the notice is received by the relevant person and, if any debt is so due, specifying the amount of the debt, and

(II) if the amount of any debt is so specified, to pay to the Revenue Commissioners within the period referred to in clause (I) a sum equal to the amount of the debt so specified.

(b) Where the amount of the debt due by the relevant person to the taxpayer is equal to or greater than the specified amount in relation to the taxpayer, the amount of the debt specified in the return shall be an amount equal to the specified amount.

(c) Where the relevant person is a financial institution and the debt due by the relevant person to the taxpayer is part of a deposit held to the credit of the taxpayer and any other person or persons to their joint benefit, the return shall be made within a period of 10 days from—

(i) the expiry of the period specified in the notices to be given under paragraph (e), or

(ii) the production of the evidence referred to in paragraph (e)(II).

(d) A relevant person to whom a notice of attachment has been given shall comply with the direction in the notice.

(e) Where a relevant person which is a financial institution is given a notice of attachment and the debt due by the relevant person to the taxpayer is part of a deposit held by the relevant person to the credit of the taxpayer and any other person or persons (in this paragraph referred to as “the other party or parties”) for their joint benefit, the relevant person shall on receipt of the notice of attachment give to the taxpayer and the other party or parties to the deposit a notice in writing in which is entered—

(i) the taxpayer's name and address,

(ii) the name and address of the person to whom a notice under this paragraph is given,

(iii) the name and address of the relevant person, and

(iv) the specified amount,

and which states that—

(I) a notice of attachment under this section has been received in respect of the taxpayer,

(II) under this section a deposit is deemed (unless evidence to the contrary is produced to the satisfaction of the relevant person within 10 days of the giving of the notice under this paragraph) to be held to the benefit of the taxpayer and the other party or parties to the deposit equally, and

(III) unless such evidence is produced within the period specified in the notice given under this paragraph—

(A) a sum equal to the amount of the deposit so deemed to be held to the benefit of the taxpayer (and accordingly regarded as a debt due to the taxpayer by the relevant person) shall be paid to the Revenue Commissioners, where that amount is equal to or less than the specified amount, and

(B) where the amount of the deposit so deemed to be held to the benefit of the taxpayer (and accordingly regarded as a debt due to the taxpayer by the relevant person) is greater than the specified amount, a sum equal to the specified amount shall be paid to the Revenue Commissioners.

(3) An amount in respect of tax, interest on unpaid tax or a penalty, as respects which a taxpayer is in default as specified in subsection (2), shall not be entered in a notice of attachment unless—

(a) a period of one month has expired from the date on which such default commenced, and

(b) the Revenue Commissioners have given the taxpayer a notice in writing (whether or not the document containing the notice also contains other information being communicated by the Revenue Commissioners to the taxpayer), not later than 7 days before the date of the receipt by the relevant person or relevant persons concerned of a notice of attachment, stating that if the amount is not paid it may be specified in a notice or notices of attachment and recovered under this section from a relevant person or relevant persons in relation to the taxpayer.

(4) If, when a relevant person receives a notice of attachment, the amount of the debt due by the relevant person to the taxpayer named in the notice is less than the specified amount in relation to the taxpayer or no debt is so due and, at any time after the receipt of the notice and before the end of the relevant period in relation to the notice, an additional debt becomes due by the relevant person to the taxpayer, the relevant person shall within 10 days of that time—

(a) if the aggregate of the amount of any debt so due and the additional debt so due is equal to or less than the specified amount in relation to the taxpayer—

(i) deliver a further return to the Revenue Commissioners specifying the additional debt, and

(ii) pay to the Revenue Commissioners the amount of the additional debt,

and so on for each subsequent occasion during the relevant period in relation to the notice of attachment on which an additional debt becomes due by the relevant person to the taxpayer until—

(I) the aggregate amount of the debt and the additional debt or debts so due equals the specified amount in relation to the taxpayer, or

(II) paragraph (b) applies in relation to an additional debt, and

(b) if the aggregate amount of any debt and the additional debt or debts so due to the taxpayer is greater than the specified amount in relation to the taxpayer—

(i) deliver a further return to the Revenue Commissioners specifying such portion of the latest additional debt as when added to the aggregate of the debt and any earlier additional debts is equal to the specified amount in relation to the taxpayer, and

(ii) pay to the Revenue Commissioners that portion of the additional debt.

(5) Where a relevant person delivers, either fraudulently or negligently, an incorrect return or further return that purports to be a return or further return made in accordance with this section, the relevant person shall be deemed to be guilty of an offence under section 1078.

(6) (a) Where a notice of attachment has been given to a relevant person in respect of a taxpayer, the relevant person shall not, during the relevant period in relation to the notice, make any disbursements out of the debt, or out of any additional debt, due by the relevant person to the taxpayer except to the extent that any such disbursement—

(i) will not reduce the debt or the aggregate of the debt and any additional debts so due to an amount that is less than the specified amount in relation to the taxpayer, or

(ii) is made pursuant to an order of a court.

(b) For the purposes of this section, a disbursement made by a relevant person contrary to paragraph (a) shall be deemed not to reduce the amount of the debt or any additional debts due by the relevant person to the taxpayer.

(7) (a) Sections 1052 and 1054 shall apply to a failure by a relevant person to deliver a return required by a notice of attachment within the time specified in the notice or to deliver a further return within the time specified in subsection (4) as they apply to a failure to deliver a return referred to in section 1052.

(b) A certificate signed by an officer of the Revenue Commissioners which certifies that he or she has examined the relevant records and that it appears from those records that during a specified period a specified return was not received from a relevant person shall be evidence until the contrary is proved that the relevant person did not deliver the return during that period.

(c) A certificate certifying as provided by paragraph (b) and purporting to be signed by an officer of the Revenue Commissioners may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been so signed.

(8) Where a relevant person to whom a notice of attachment in respect of a taxpayer has been given—

(a) delivers the return required to be delivered by that notice but fails to pay to the Revenue Commissioners within the time specified in the notice the amount specified in the return or any part of that amount, or

(b) delivers a further return under subsection (4) but fails to pay to the Revenue Commissioners within the time specified in that subsection the amount specified in the further return or any part of that amount,

the amount specified in the return or further return or the part of that amount, as the case may be, which the relevant person has failed to pay to the Revenue Commissioners may, if the notice of attachment has not been revoked by a notice of revocation, be sued for and recovered by action or other appropriate proceedings at the suit of an officer of the Revenue Commissioners in any court of competent jurisdiction.

(9) Nothing in this section shall be construed as rendering any failure by a relevant person to make a return or further return required by this section, or to pay to the Revenue Commissioners the amount or amounts required by this section to be paid by the relevant person, liable to be treated as a failure to which section 1078 applies.

(10) (a) A notice of attachment given to a relevant person in respect of a taxpayer may be revoked by the Revenue Commissioners at any time by notice in writing given to the relevant person and shall be revoked forthwith if the taxpayer has paid the specified amount to the Revenue Commissioners.

(b) Where in pursuance of this section a relevant person pays any amount to the Revenue Commissioners out of a debt or an additional debt due by the relevant person to the taxpayer and, at the time of the receipt by the Revenue Commissioners of that amount, the taxpayer has paid to the Revenue Commissioners the amount or aggregate amount of the taxes, interest on unpaid taxes and penalties in respect of which the taxpayer is in default at the time of the giving of the notice or notices of attachment, the first-mentioned amount shall be refunded by the Revenue Commissioners forthwith to the taxpayer.

(11) Where a notice of attachment or a notice of revocation is given to a relevant person in relation to a taxpayer, a copy of such notice shall be given by the Revenue Commissioners to the taxpayer forthwith.

(12) (a) Where in pursuance of this section any amount is paid to the Revenue Commissioners by a relevant person, the relevant person shall forthwith give the taxpayer concerned a notice in writing specifying the payment, its amount and the reason for which it was made.

(b) On the receipt by the Revenue Commissioners of an amount paid in pursuance of this section, the Revenue Commissioners shall forthwith notify the taxpayer and the relevant person in writing of such receipt.

(13) Where in pursuance of this section a relevant person pays to the Revenue Commissioners the whole or part of the amount of a debt or an additional debt due by the relevant person to a taxpayer, or any portion of such an amount, the taxpayer shall allow such payment and the relevant person shall be acquitted and discharged of the amount of the payment as if it had been paid to the taxpayer.

(14) Where in pursuance of this section a relevant person is prohibited from making any disbursement out of a debt or an additional debt due to a taxpayer, no action shall lie against the relevant person in any court by reason of a failure to make any such disbursement.

(15) Any obligation on the Revenue Commissioners to maintain secrecy or any other restriction on the disclosure of information by the Revenue Commissioners shall not apply in relation to information contained in a notice of attachment.

(16) A notice of attachment in respect of a taxpayer shall not be given to a relevant person at a time when the relevant person or the taxpayer is an undischarged bankrupt or a company being wound up.

(17) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section to be performed or discharged by the Revenue Commissioners.

1003 Payment of tax by means of donation of heritage items. [FA95 s176; FA96 s139]

1003.—(1) (a) In this section—

“the Acts” means—

(i) the Tax Acts (other than Chapter 8 of Part 6, Chapter 2 of Part 18 and Chapter 4 of this Part),

(ii) the Capital Gains Tax Acts, and

(iii) the Capital Acquisitions Tax Act, 1976, and the enactments amending or extending that Act,

and any instruments made thereunder;

“approved body” means—

(i) the National Archives,

(ii) the National Gallery of Ireland,

(iii) the National Library of Ireland,

(iv) the National Museum of Ireland,

(v) the Irish Museum of Modern Art, or

(vi) in relation to the offer of a gift of a particular item or collection of items, any other such body (being a body owned, or funded wholly or mainly, by the State or by any public or local authority) as may be approved, with the consent of the Minister for Finance, by the Minister for Arts, Heritage, Gaeltacht and the Islands for the purposes of this section;

“arrears of tax” means tax due and payable in accordance with any provision of the Acts (including any interest and penalties payable under any provision of the Acts in relation to such tax)—

(i) in the case of income tax, corporation tax or capital gains tax, in respect of the relevant period, or

(ii) in the case of gift tax or inheritance tax, before the commencement of the calendar year in which the relevant gift is made,

which has not been paid at the time a relevant gift is made;

“current liability” means—

(i) in the case of income tax or capital gains tax, any liability to such tax arising in the year of assessment in which the relevant gift is made,

(ii) in the case of corporation tax, any liability to such tax arising in the accounting period in which the relevant gift is made,

(iii) in the case of gift tax or inheritance tax, any liability to such tax which becomes due and payable in the calendar year in which the relevant gift is made;

“designated officer” means—

(i) the member of the selection committee who represents the appropriate approved body on that committee where the approved body is so represented, or

(ii) in any other case, a person nominated in that behalf by the Minister for Arts, Heritage, Gaeltacht and the Islands;

“heritage item” has the meaning assigned to it by subsection (2) (a);

“market value” has the meaning assigned to it by subsection (3);

“relevant gift” means a gift of a heritage item to an approved body in respect of which no consideration whatever (other than relief under this section) is received by the person making the gift, either directly or indirectly, from the approved body or otherwise;

“relevant period” means—

(i) in the case of income tax and capital gains tax, any year of assessment preceding the year in which the relevant gift is made, and

(ii) in the case of corporation tax, any accounting period preceding the accounting period in which the relevant gift is made;

“selection committee” means a committee consisting of—

(i) the Chairperson of the Heritage Council,

(ii) the Director of the Arts Council,

(iii) the Director of the National Archives,

(iv) the Director of the National Gallery of Ireland,

(v) the Director of the National Library of Ireland,

(vi) the Director of the National Museum of Ireland, and

(vii) the Director of the Irish Museum of Modern Art,

and includes any person duly acting in the capacity of any of those persons as a result of the person concerned being unable to fulfil his or her duties for any of the reasons set out in paragraph (b) (ii);

“tax” means income tax, corporation tax, capital gains tax, gift tax or inheritance tax, as the case may be, payable in accordance with any provision of the Acts;

“valuation date” means the date on which an application is made to the selection committee for a determination under subsection (2) (a).

(b) (i) The selection committee may act notwithstanding one or more vacancies among its members and may regulate its own procedure.

(ii) If and so long as a member of the selection committee is unable through illness, absence or other cause to fulfil his or her duties, a person nominated in that behalf by the member shall act as the member of the committee in the place of the member.

(2) (a) In this section, “heritage item” means any kind of cultural item, including—

(i) any archaeological item, archive, book, estate record, manuscript and painting, and

(ii) any collection of cultural items and any collection of such items in their setting,

which, on application to the selection committee in writing in that behalf by a person who owns the item or collection of items, as the case may be, is determined by the selection committee, after consideration of any evidence in relation to the matter which the person submits to the committee and after such consultation (if any) as may seem to the committee to be necessary with such person or body of persons as in the opinion of the committee may be of assistance to them, to be an item or collection of items which is—

(I) an outstanding example of the type of item involved, pre-eminent in its class, whose export from the State would constitute a diminution of the accumulated cultural heritage of Ireland, and

(II) suitable for acquisition by an approved body.

(b) On receipt of an application for a determination under paragraph (a), the selection committee shall request the Revenue Commissioners in writing to value the item or collection of items, as the case may be, in accordance with subsection (3).