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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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530F Obligation on principals to deduct tax.

(1) A principal to whom a deduction authorisation is issued under section 530D shall deduct tax from the relevant payment concerned only in accordance with the terms of the deduction authorisation.

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(2) Subject to subsection (3), a principal to whom section 530A applies who makes a relevant payment to a subcontractor in circumstances other than those referred to in subsection (1) shall—

(a) be liable to pay tax to the Revenue Commissioners at the rate of 35 per cent on the amount of the relevant payment, and

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(b) without prejudice to any other penalty to which the principal may be liable and without prejudice to section 1078, be liable to a penalty of €5,000 or the amount of the tax payable under paragraph (a), whichever is the lesser, unless the principal submits the details of the relevant payment in the return required under section 530K for the period concerned, on or before the due date for that return.

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(b) without prejudice to any other penalty to which the principal may be liable and without prejudice to section 1078, be liable to a penalty of €5,000 or the amount of the tax payable under paragraph (a), whichever is the lesser.

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(2) A principal to whom section 530A applies who makes a relevant payment to a subcontractor in circumstances other than those referred to in subsection (1) shall, without prejudice to section 1078, be liable to a penalty of—

(a) 35 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor who has not had a determination made by the Revenue Commissioners under section 530I,

(b) 20 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor who has had a determination made by the Revenue Commissioners under section 530I and where neither section 530G nor section 530H applies to the subcontractor concerned,

(c) 10 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor to whom section 530H applies, and

(d) 3 per cent of the relevant payment, where the person to whom the relevant payment was made was a subcontractor to whom section 530G applies.

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(3) [3]>(a) Where subsection (2)(a) applies and the principal submits the details of the relevant payment in a return for the relevant return period, the Revenue Commissioners shall establish the amount of tax that would have been due from the principal in respect of that payment had the rate of tax been the rate of tax last notified by the Revenue Commissioners to the sub-contractor concerned under section 530I and, notwithstanding subsection (2)(a), the tax due from the principal in respect of that payment by virtue of that subsection shall be the amount so established.<[3][3]>(a) Where subsection (2)(a) applies and the principal submits the details of the relevant payment in a return for the relevant return period [7]>by the due date for the return<[7] and, if appropriate, provides the Revenue Commissioners with such details, in relation to the relevant contract in respect of which the relevant payment was made, as may be required by the Revenue Commissioners, the Revenue Commissioners shall establish the amount of tax that would have been due from the principal in respect of that payment had the rate of tax been the rate of tax last notified by the Revenue Commissioners to the subcontractor concerned under section 530I and, notwithstanding the provisions of subsection (2)(a), the tax due from the principal in respect of that payment by virtue of that subsection shall be the amount so established.<[3]

(b) Where paragraph (a) applies, the Revenue Commissioners shall notify the principal of whether any adjustment to his liability for the period arises on account of the application of that paragraph and the Revenue Commissioners may include provision in any regulations made by them under this Chapter to give effect to this subsection.

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(c) The amount of the penalty under subsection (2)(b) shall be calculated without reference to any adjustment of the tax due as a result of the application of paragraph (a).

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(3) (a) Where subsection (2) applies, a principal shall submit an unreported payment notification to the Revenue Commissioners.

(b) The Revenue Commissioners shall make regulations for the purposes of this subsection and such regulations may—

(i) specify the manner by which principals shall submit an unreported payment notification to the Revenue Commissioners, and

(ii) provide for the details to be supplied to the Revenue Commissioners by a principal in relation to an unreported payment notification.

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(4) Where a principal makes a relevant payment to a subcontractor, the principal shall issue a copy of the deduction authorisation in relation to that payment to the sub-contractor.

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(4) Where, in making a relevant payment to a subcontractor, a principal deducts tax from the payment, the principal shall—

(a) provide the subcontractor with a copy of the deduction authorisation related to that payment, or

(b) arrange for the following details from the deduction authorisation to be given to the subcontractor by written or electronic means:

(i) the name and tax reference number of the principal,

(ii) the name and tax reference number of the subcontractor,

(iii) the gross amount of the payment, including the amount of tax deducted,

(iv) the amount of tax deducted,

(v) the rate at which tax was deducted,

(vi) the date of the payment, and

(vii) the unique reference number issued by the Revenue Commissioners on the deduction authorisation.

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(5) The amount of tax which a principal is liable to deduct under subsection (1) from a relevant payment shall be due and payable by the principal concerned to the Revenue Commissioners in respect of the return period in which the payment is made.

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(6) The amount of tax which a principal is liable to pay to the Revenue Commissioners by virtue of subsection (2)(a) shall be due and payable by the principal concerned to the Revenue Commissioners in respect of the return period in which the payment is made.

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(7) Where, due to a persistent technology systems failure, a principal is unable to give notification to the Revenue Commissioners under section 530C(1) and has no option but to make a relevant payment without complying with that provision, subsection (2) shall not apply to that payment if the principal—

(a) deducts tax from that payment at the rate last notified to the principal in respect of the subcontractor concerned, or if there was no such notification, deducts tax at a rate of 35 per cent from that payment,

(b) immediately upon rectification of the technology systems failure notifies the Revenue Commissioners, in accordance with this Chapter or regulations made under this Chapter, that the payment has been made,

(c) provides all details in relation to the payment that the Revenue Commissioners may require, and

(d) pays the tax deducted in accordance with paragraph (a) to the Revenue Commissioners on or before the due date for the making of a return for the period within which the principal notifies the Revenue Commissioners under paragraph (b).

(8) Where a principal complies with the requirements of subsection (7)

(a) the principal shall be deemed to have deducted tax from a relevant payment in accordance with the terms of a valid deduction authorisation, and

(b) for the purposes of section 530K, the payment shall be deemed to have been made in the return period in which the principal notifies the Revenue Commissioners under subsection (7)(b).

(9) A principal shall, on request, provide the Revenue Commissioners with information in relation to the circumstances and details of a persistent technology systems failure under subsection (7).

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Inserted by FA11 s20(1)(k). With effect from 1 January 2012 as per S.I. No. 660 of 2011.

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Substituted by FA12 s22(1)(m). Comes into operation on and from 31 March 2012.

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Substituted by FA12 s22(1)(n). Comes into operation on and from 31 March 2012.

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Inserted by FA12 s22(1)(o). Comes into operation on and from 31 March 2012.

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Substituted by FA12 s22(1)(p). Comes into operation on and from 31 March 2012.

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Inserted by FA12 s22(1)(q). Comes into operation on and from 31 March 2012.

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Deleted by F(No.2)A13 s26. Comes into operation on 1 January 2014.

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Substituted by FA14 s17(b)(i). Comes into operation on 1 January 2015.

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Substituted by FA14 s17(b)(ii). Comes into operation on 1 January 2015.

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Deleted by FA14 s17(b)(iii). Comes into operation on 1 January 2015.