Taxes Consolidation Act, 1997 (Number 39 of 1997)
SCHEDULE 2
Machinery for Assessment, Charge and Payment of Tax under Schedule C and, in Certain Cases, Schedule D
Sections 33, 61 and 62.
[ITA67 Sch1 PtsI and III to VI; F(MP)A68 s3(3) and Sch PtII, s3(4) and Sch PtIII and s3(5) and Sch PtIV; FA74 s11 and Sch1 PtII]
PART 1
Interpretation of Parts 2 to 4
1. Section 32 shall apply for the interpretation of Parts 2 to 4 of this Schedule as it applies for the interpretation of Chapter 1 of Part 3 of this Act, except that in Part 4 of this Schedule “dividends” shall include all such interest, annuities or payments as are, within the meaning of section 60, dividends to which Chapter 2 of Part 4 of this Act applies.
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1A. In this Schedule—
“chargeable person” means any of the following:
(a) a person who is entrusted with the payment of any dividends which are payable to any persons in the State out of any public revenue;
(b) a person in the State who is entrusted with the payment of any dividends to which Chapter 2 of Part 4 applies;
(c) a banker or other person in the State who obtains payment of any dividends in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
(d) a banker in the State who sells or otherwise realises coupons in such manner that the proceeds of the sale or realisation are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
(e) a dealer in coupons in the State who purchases coupons in such manner that the price paid on the purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D;
“specified dividend income” means—
(a) the amount of dividends which are payable to any person in the State out of any public revenue,
(b) the amount of dividends to which Chapter 2 of Part 4 applies,
(c) the amount of dividends received by a chargeable person in the State in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D,
(d) the proceeds of sale or realisation of coupons where those proceeds are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D, or
(e) the price paid on purchase of coupons where such price paid on purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D.
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PART 2
Public revenue dividends, etc., payable to the Bank of Ireland, or entrusted for payment to the Bank of Ireland
2. The Bank of Ireland, as respects the dividends and the profits attached to the dividends payable to the Bank out of the public revenue of the State, or payable out of any public revenue and entrusted to the Bank for payment and distribution, shall, when any payment becomes due, deliver to the Commissioners appointed to assess and charge the income tax on such dividends and the profits attached to such dividends in books provided for the purpose true accounts of—
(a) the amounts of the dividends, and profits attached to the dividends, payable to the Bank,
(b) all dividends entrusted to the Bank for payment to the persons entitled to such dividends, and
(c) the amount of income tax chargeable on such dividends and the profits attached to such dividends at the standard rate in force at the time of payment without any other deduction than is allowed by the Income Tax Acts.
3. The accounts referred to in paragraph 2 shall distinguish the separate account of each person.
4. The Commissioners shall assess the income tax chargeable on the accounts delivered to the best of their judgment and belief, and shall deliver the assessment books signed by them to the Revenue Commissioners.
5. The Revenue Commissioners shall cause to be made out a certificate showing the total amount of income tax, the total amounts of the dividends and profits attached to the dividends charged with income tax, and the description of the persons or bodies of persons to whom such dividends and profits are payable or who have the distribution or are entrusted with the payment of such dividends.
6. The certificate shall be transmitted to the Commissioners whose duty it is to make the assessment.
7.
(1) In the case of dividends and profits attached to dividends payable to the Bank of Ireland out of the public revenue of the State, the Bank of Ireland shall set apart the income tax in respect of the amount payable to the Bank.
(2) In the case of dividends and profits attached to dividends entrusted to the Bank of Ireland for payment and distribution—
(a) the Bank of Ireland shall before making any payment retain the amount of the income tax for the purposes of the Income Tax Acts,
(b) the retaining of the amount shall be deemed to be a payment of the income tax by the persons entitled to the dividends and shall be allowed by those persons on the receipt of the residue of the dividends, and
(c) the Bank of Ireland shall be acquitted and discharged of a sum equal to the amount retained as though that sum had been actually paid.
8. Money set apart or retained under paragraph 7 shall be paid into the general account of the Revenue Commissioners at the Bank of Ireland, and every such payment shall be accompanied by a certificate, under the hands of 2 or more of the Commissioners who made the assessment, of the amount of the assessment under which the payment is made.
9. Where the Bank of Ireland does all such things as are necessary to enable the income tax to be assessed and paid in respect of British Government Stocks and India Stocks inscribed in its books in Dublin, the Bank shall receive as remuneration an allowance, to be calculated by reference to the amount of dividends paid in respect of such Stocks from which income tax is deducted, and to be fixed by the Minister for Finance.
10. Except where otherwise provided in any other enactments in force at the commencement of this Act, no assessment, charge or deduction of income tax under this Part of this Schedule shall be made where any half-yearly payment in respect of any dividends does not exceed [1]>£2.50<[1][1]>€3.50<[1], but such dividends shall be assessed and charged under Case III of Schedule D.
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PART 3
Public revenue dividends payable by public offices and departments
11. Public revenue dividends payable by any public office or Department of State shall be charged under Schedule C by the Revenue Commissioners.
12. The Revenue Commissioners shall exercise the like powers and duties as are possessed by Commissioners empowered to charge dividends payable out of the public revenue in other cases.
13. When any payments of dividends referred to in paragraph 11 are made, the income tax on those payments shall be computed and certified to the proper officer for payment, who shall retain the tax and pay the tax into the general account of the Revenue Commissioners at the Bank of Ireland.
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PART 4
Other public revenue dividends, dividends to which Chapter 2 of Part 4 applies, proceeds of coupons and price paid on purchase of coupons
14.
(1) Every person, being—
(a) a person (other than the Bank of Ireland) entrusted with the payment of any dividends payable to any persons in the State out of any public revenue other than that of the State,
(b) a person in the State entrusted with the payment of any dividends to which Chapter 2 of Part 4 applies,
(c) a banker or other person in the State who obtains payment of any dividends in such circumstances that the dividends are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D,
(d) a banker in the State who sells or otherwise realises coupons in such manner that the proceeds of the sale or realisation are chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D, and
(e) a dealer in coupons in the State who purchases coupons in such manner that the price paid on the purchase is chargeable to income tax under Schedule C or, in the case of dividends to which Chapter 2 of Part 4 applies, under Schedule D,
shall, within one month after being so required by notice published in Iris Oifigiúil, deliver to the Revenue Commissioners an account in writing giving such person’s name and residence and a description of those dividends or proceeds or that price paid on purchase, and shall also, on demand by [7]>the inspector<[7][7]>the appropriate officer<[7] authorised for that purpose by the Revenue Commissioners, deliver to that [8]>inspector<[8][8]>officer<[8] true and perfect accounts of the amount of all such dividends, proceeds or price paid on purchase.
(2) The accounts referred to in subparagraph (1) shall distinguish the separate accounts of each of the persons entitled to receive such dividends, proceeds or price paid on purchase, and state the name and address of each such person, and give particulars of the amounts payable and, in the case of amounts payable out of any public revenue other than that of the State, of the public revenue out of which each separate amount is payable.
15. Any person mentioned in clauses (a) to (e) of paragraph 14(1) is referred to in this Part as a “chargeable person”.
16. The Revenue Commissioners shall—
(a) have all necessary powers in relation to the examining, auditing, checking and clearing the books and accounts of dividends, proceeds or price paid on purchase delivered under paragraph 14,
(b) assess and charge the dividends, proceeds or price paid on purchase at the rate of income tax in force at the time of payment, but reduced by the amount of the exemptions (if any) allowed by the Revenue Commissioners, and
(c) give notice of the amount so assessed and charged to the chargeable person.
17. The chargeable person shall out of the moneys in that person’s hands pay the income tax on the dividends, proceeds or price paid on purchase on behalf of the persons entitled to the dividends, proceeds or price paid on purchase, and shall be acquitted in respect of all such payments, and the Income Tax Acts shall apply as in the case of dividends payable out of the public revenue of the State and entrusted to the Bank of Ireland for payment and distribution.
18. The chargeable person shall pay the income tax into the general account of the Revenue Commissioners at the Bank of Ireland, and in default of payment the income tax shall be recovered from the chargeable person in the like manner as other income tax assessed and charged on that person may be recovered.
19. A chargeable person who does all such things as are necessary to enable the income tax to be assessed and paid shall receive as remuneration an allowance, to be calculated by reference to the amount of the dividends, proceeds or price paid on purchase paid from which tax has been deducted, and to be fixed by the Minister for Finance at a rate not being less than [2]>£0.675<[2][2]>€0.675<[2] for every [3]>£1,000<[3][3]>€1,000<[3] of that amount.
20. Notwithstanding anything to the contrary in the Income Tax Acts, where the Bank of Ireland (in this paragraph referred to as “the Bank”) is entrusted with the payment of any dividends which are payable to any persons in the State out of any public revenue other than that of the State, this Part shall apply to the Bank and, where the Bank does all things required by this Part to be done by a person entrusted with the payment of such dividends, remuneration shall be payable to the Bank in accordance with paragraph 19.
21. Nothing in this Part shall impose on any banker the obligation to disclose any particulars relating to the affairs of any person on whose behalf that banker may be acting.
22. Where income tax in respect of the proceeds of the sale or realisation of any coupon or in respect of the price paid on the purchase of any coupon has been accounted for under this Part by any banker or any dealer in coupons and the Revenue Commissioners are satisfied that the dividends payable on the coupons in relation to which such proceeds or such price arises have been subsequently paid in such manner that income tax has been deducted from such dividends under any of the provisions of this Schedule, the income tax so deducted shall be repaid.
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PART 4
Public revenue dividends, dividends to which Chapter 2 of Part 4 applies, proceeds of coupons and price paid on purchase of coupons.
(14) [18]>(1) Subject to Chapter 2 of Part 3, every chargeable person shall, on making a payment of specified dividend income, deduct and retain a sum representing the amount of the income tax due on that income and pay that income tax on behalf of the person entitled to that income.<[18][18]>(1) Subject to Chapter 2 of Part 3 and subparagraph (3), every chargeable person shall, on making a payment of specified dividend income, deduct and retain a sum representing income tax at a rate of 25 per cent on that income and pay that income tax on behalf of the person entitled to that income.<[18]
(2) The payment of the income tax by the chargeable person shall be deemed to be a payment of the income tax by the persons entitled to the specified dividend income and shall be allowed by those persons on the receipt of the residue of the dividends.
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(3) Subparagraph (1) shall not apply to a payment of specified dividend income to a company where that company—
(a) is beneficially entitled to that income, and
(b) is or will be within the charge to corporation tax in respect of that income.
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(15) (1) Every chargeable person who makes a payment of specified dividend income shall make for each year of assessment within [14]>20 days<[14] [14]>46 days<[14] from the end of the year of assessment, a return to the Collector-General of that specified dividend income and of the income tax in relation to that specified dividend income.
(2) The income tax in relation to payments of specified dividend income which is required to be included in a return shall—
(a) be due at the time by which the return is to be made, and
(b) be paid by the chargeable person to the Collector-General,
and the income tax so due shall be payable by the chargeable person without the making of an assessment; but income tax which has become so due may be assessed on the chargeable person (whether or not it has been paid when the assessment is made) if that tax or any part of it is not paid on or before the due date.
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(3) A return due under this Schedule shall be in a form prescribed by the Revenue Commissioners and shall include a declaration to the effect that the return is correct and complete.
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(3) A return due under this Schedule shall be in a form prescribed by the Revenue Commissioners and shall include the following:
(a) the name and address of the person to whom the payment of the specified dividend income is made;
(b) the amount and type of the payment referred to in clause (a);
(c) the amount of income tax deducted in respect of the payment referred to in clause (a) in accordance with paragraph 14(1);
(d) a declaration to the effect that the return is correct and complete.
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(16) (1) Where it appears to the inspector that there is any amount of income tax in relation to a payment of specified dividend income which should have been but was not included in a return or where the inspector is dissatisfied with any return, the inspector may make an assessment on the chargeable person to the best of his or her judgement. Any amount of income tax in relation to a payment of specified dividend income due under an assessment made by virtue of this subparagraph shall be treated for the purpose of interest on unpaid tax as having been payable at the time when it would have been payable if a correct return had been made.
(2) Any income tax assessed on a chargeable person under this Schedule shall be due within one month after the issue of the notice of assessment (unless that tax is due earlier under paragraph 15) subject to any appeal against the assessment, but no such appeal shall affect the date when any amount is due under paragraph 15.
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(3) On the determination of an appeal against an assessment under this Chapter, any income tax overpaid shall be repaid.
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(17) Where any item has been incorrectly included in a return as income tax, the inspector may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liabilities to tax, including interest on unpaid tax, whether of the chargeable person or any other person, are in so far as possible the same as they would have been if the item had not been so included.
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(18) (1) A chargeable person shall keep records to distinguish the separate accounts of each of the persons entitled to receive specified dividend income and such records shall include—
(a) the name and address of each such person,
(b) particulars of the amounts payable, and
(c) in the case of amounts payable out of any public revenue, particulars of the public revenue out of which each separate amount is payable.
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(18) (1) A chargeable person shall keep records to distinguish the separate accounts of each of the persons entitled to receive specified dividend income and such records shall include—
(a) the name and address of the person entitled to receive specified dividend income,
(b) the amount and type of the specified dividend income payments paid to the person referred to in clause (a),
(c) the amounts of income tax deducted in respect of the payments referred to in clause (c) in accordance with paragraph 14(1), and
(d) in the case of amounts payable out of any public revenue to the person referred to in clause (a), particulars of the public revenue out of which each separate amount is payable.
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(2) Records kept by a chargeable person in accordance with subparagraph (1) shall—
(a) be kept and retained by the chargeable person for a period of 6 years from the day on which the payment was made, and
(b) on being required by notice in writing given to the chargeable person by an inspector, be made available to the inspector within the time specified in the notice.
(19) The provisions of section 898N shall apply with any necessary modifications as respects powers of an authorised officer as if a reference in that section to—
(a) books and records were a reference to books and records kept for the purposes of this Schedule,
(b) an authorised officer in that section were a reference to a Revenue officer as defined in section 898B, and
(c) a reference in that section to a paying agent were a reference to a chargeable person.
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(20) The provisions of the Income Tax Acts relating to—
(a) assessments to income tax,
(b) appeals against such assessments (including the rehearing of appeals and the statement of a case for the opinion of the High Court), and
(c) the collection and recovery of income tax,
shall, in so far as they are applicable, apply to the assessment, collection and recovery of income tax due under this Schedule.
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20. The provisions of the Income Tax Acts relating to—
(a) assessments to income tax, and
(b) the collection and recovery of income tax,
shall, in so far as they are applicable, apply to the assessment, collection and recovery of income tax due under this Schedule.
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20A. (1)Subject to subparagraph (2), a chargeable person aggrieved by an assessment made on that person under this Schedule may appeal the assessment to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of assessment.
(2) Where, in accordance with this Schedule, a chargeable person is required to make a return and account for income tax to the Collector-General, no appeal lies against an assessment until such time as the chargeable person makes the return and pays or has paid the amount of the income tax payable on the basis of that return.
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(21) (1) Any amount of income tax payable in accordance with this Schedule shall, without the making of an assessment, carry interest from the date when the amount becomes due and payable until payment for any day or part of a day during which the amount remains unpaid, at a rate of 0.0274 per cent.
(2) Subsections (3) to (5) of section 1080 shall apply in relation to interest payable under subparagraph (1) as they apply in relation to interest payable under section 1080.
(3) In its application to any income tax charged by any assessment made in accordance with this Schedule, section 1080 shall apply as if subsection (2)(b) of that section were deleted.
(22) Where—
(a) income tax in respect of the proceeds of the sale or realisation of any coupon or in respect of the price paid on the purchase of any coupon has been accounted for under this Part by any banker or any dealer in coupons, and
(b) the Revenue Commissioners are satisfied that the dividends payable on the coupons in relation to which such proceeds or such price arises have been subsequently paid in such manner that income tax has been deducted from such dividends under any of the provisions of this Schedule,
then the income tax so deducted shall be repaid.
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PART 5
Relief from obligation to pay tax on certain interest, dividends and other annual payments in the case of persons entrusted with payment
23. When any interest, dividends or other annual payments payable out of any public revenue other than that of the State, or in respect of the stocks, funds, shares or securities of any body of persons not resident in the State, are entrusted to any person in the State for payment to any person in the State, the Revenue Commissioners shall have power to relieve the person so entrusted with payment from the obligation to pay the income tax on such interest, dividends or other annual payments imposed on such person by section 17 and Chapter 1 of Part 3, or Chapter 2 of Part 4 and this Schedule.
24. When granting the relief referred to in paragraph 23 the Revenue Commissioners shall have power to prescribe any conditions which may appear to them to be necessary to ensure the assessment and payment of any income tax assessable and payable in respect of such interest, dividends or other annual payments under the Income Tax Acts.
25. A letter signed by a Secretary or an Assistant Secretary of the Revenue Commissioners stating that the Revenue Commissioners have exercised all or any of the powers conferred by this Part on them or the publication of a notice to that effect in Iris Oifigiúil shall be sufficient evidence that they have done so.
26. When, under the powers conferred on the Revenue Commissioners by this Part, the person entrusted with the payment of the interest, dividends or other annual payments is relieved from payment of the income tax on such interest, dividends or other annual payments, that tax shall be assessable and chargeable under the appropriate case of Schedule D on the person entitled to receive such interest, dividends or other annual payments and shall be payable by that person.
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27. Where the person entrusted with the payment of the interest, dividends or other annual payments complies with the conditions prescribed by the Revenue Commissioners under paragraph 24, such person shall be entitled to receive as remuneration an allowance, to be calculated by reference to the amount of the dividends, interest or other annual payments in respect of which such conditions have been complied with, and to be fixed by the Minister for Finance at a rate or rates not being in any case less than [4]>£0.675<[4][4]>€0.675<[4] for every [5]>£1,000<[5][5]>€1,000<[5] of that amount.
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28. Notwithstanding paragraph 23, when any interest, dividends or other annual payments payable out of any public revenue other than that of the State, or in respect of the stocks, funds, shares or securities of any body of persons not resident in the State, are entrusted to any person in the State for payment to an investment undertaking within the meaning of section 739B and the person so entrusted would, apart from this paragraph, have an obligation imposed by section 17 and Chapter 1 of Part 3, or Chapter 2 of Part 4 and this Schedule, to pay the income tax on such interest, dividends or other annual payments, that obligation shall not apply.
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Inserted by FA06 s46(1). Applies as respects any payments on or after the date of 31 March 2006
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Substituted by F(TA)A15 s41(1)(b). With effect from 21 March 2016 per S. I. No 110 of 2016.
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Substituted by FA20 s16(1)(b). Comes into operation on 6 April 2022 as per S.I. No. 142 of 2022.