Taxation of gains

Summary

This section charges to tax gains arising in an SSIA as a result of maturity or cessation of the account or in the event of a withdrawal from the account. There is an obligation on savings managers to make returns monthly to the Revenue Commissioners for each SSIA under his/her control. This return is to include the tax liability due on each account for the monthly period. An inspector will have the authority to investigate any discrepancies in these returns and to demand the payment of any unpaid tax by a savings manager. Existing provisions regarding the assessment and collection of tax and the imposition of interest on overdue tax will also apply to this section.

Details

Gains

(1) Gains arising in respect of an SSIA are liable to tax (to be treated as income tax) at a rate of 23 per cent.

Tax liability

(2) Where a savings manager becomes liable to tax in respect of an SSIA, funds/assets in the SSIA can be used to satisfy that liability. If there are insufficient funds in the SSIA to satisfy the liability, the qualifying individual will owe the savings manager that amount.

(3) The tax liability arising in any month is due at the same time as the monthly return is due under section 848P i.e. 15 days after the end of the month. (The tax liability is netted off against tax credits claimed by the savings manager).

Assessment by Inspector

(4) & (5) Should an inspector be dissatisfied with any return, or has reason to suspect that there is an amount of tax which should have been included in a return but wasn’t, he/she may make an assessment (which may be appealed) on the qualifying savings manager. Any tax due as a result of an assessment shall be treated as having been payable at the time the relevant return was payable. Tax due as a result of an assessment is due one month after the issue of the notice of assessment, however any tax overpaid shall be repaid.

Existing provisions and interest chargeable

(6) The usual income tax provisions regarding the assessment and collection of tax apply. Interest will be charged at a rate of 0.0322 per cent per day or part of a day on any tax payable. Certain parts of section 1080 dealing with interest on overdue income tax and corporation tax will also apply to this section.

Relevant Date: Finance Act 2021