629A Tax on non-resident company recoverable from another member of group or from controlling director

Summary

This section provides a tax collection mechanism from an Irish-resident associated company or a controlling director in the event of default by a company in paying tax due in accordance with section 627(2).

Details

Definitions

(1) Certain terms are defined for the purposes of the section.

Time when collection procedure initiated

(2) & (3) The collection procedure is initiated (generally within 3 years of the due date for the making of the return by the defaulting company) by the inspector if the tax is not paid within 6 months of the return date:

• serving a notice on the group company or controlling director,
• stating the amount of tax outstanding, and
• requiring payment within 30 days.

It is sufficient for the relationship to the defaulting company to have existed at any time within the 12-month period preceding the time when the gain accrued.

Collection of tax from Irish-resident group member or controlling director

(4) Where a migration results in the non-payment of tax due and payable under section 627(2), provision is made for its collection from –

• an Irish-resident group member company, or
• an Irish-resident controlling director of the defaulting company.

It is sufficient for the relationship to the defaulting company to have existed at any time within the 12-month period preceding the time when the gain accrued.

Amount required to be paid recoverable from person on whom notice served

(5) Any amount which a person is required to pay by a notice under the section may be recovered from the person as if it were tax due by that person. That person can recover any such amount paid on foot of a notice under the section from the taxpayer company.

Payment made on foot of notice not allowed as deduction

(6) A payment made on foot of a notice under the section will not be allowed as a deduction in computing income, profit or losses for any tax purposes.

Relevant Date: Finance Act 2021