Revenue Note for Guidance

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Revenue Note for Guidance

797 Recovery of tax from trustee and payment to trustee of excess tax recoupment

(1) A person who has been charged to, and has paid, income tax on any income treated as his/her income by virtue of section 795 is entitled to recover that tax from the trustee or other person to whom the income is payable and, for this purpose, the person is also entitled to require the Revenue Commissioners to furnish him/her with a certificate specifying the amount of income so treated as his/hers and the amount of the tax so paid. Any such certificate will be evidence of those facts until the contrary is proved.

(2) Conversely, if a settlor obtains a refund of tax as a result of settlement income being treated as his/hers, he/she must pay over the tax so repaid to the trustee or other person entitled to the income. Where there are 2 or more trustees or other persons, the tax repaid must be apportioned among them.

(3) If a question arises as to the amount of any payment or apportionment to be so made, the question is to be decided by the Appeal Commissioners whose decision on the matter is final.

(4) In determining the amount recoverable from, or payable to, the trustee or other person by the settlor, the income deemed to the settlor’s income by virtue of section 795 is treated as the highest part of his/her income.

(5) Where tax is paid in respect of any income which, by virtue of this Chapter, has been treated as income of a settlor, no repayment is to be made under paragraph 21 of Schedule 32 (income tax: relief for income accumulated under trusts) on account of that tax.

Relevant Date: Finance Act 2021