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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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766B Limitation of tax credits to be paid under section 766 or 766A.

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(1) In this section “payroll liabilities” means—

(a) the amount of income tax which the company is required, by or under Chapter 4 of Part 42, to remit to the Collector-General for that period in respect of emoluments, as defined in section 983, paid to, or on account of, all employees and directors,

(b) the amount of Pay Related Social Insurance Contributions in respect of the reckonable earnings and reckonable emoluments of all directors and employees which the company is required to remit to the Collector-General for that period by or under the Social Welfare Acts, and

(c) any other levies the company is required to remit to the Collector-General, for that period, in respect of directors and employees.

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(1) In this section—

payroll liabilities” means—

(a) the amount of income tax which the company is required, by or under Chapter 4 of Part 42, to remit to the Collector-General for the relevant payroll period in respect of emoluments, as defined in section 983, paid to, or on account of, all employees and directors,

(b) the amount of Pay Related Social Insurance Contributions in respect of the reckonable earnings and reckonable emoluments of all directors and employees which the company is required to remit to the Collector-General for the relevant payroll period by or under the Social Welfare Acts, and

(c) any other amount of levies or charges the company is required, by or under Parts 18A, 18B or 18D, to remit to the Collector-General for the relevant payroll period;

relevant payroll period” means the period—

(a) beginning at the time the period immediately preceding, and equal in length to, the accounting period in which the expenditure was incurred begins, and

(b) ending at the time that accounting period ends.

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(2) For the purpose of subsection (1), Pay Related Social Insurance includes Pay Related Social Insurance Contributions payable under the Social Welfare Acts, Health Contributions payable under the Health Contributions Act 1979, and levies payable under the National Training Fund Act 2000.

(3) Where in respect of expenditure in an accounting period a company makes a claim under section 766(4B) or 766A(4B), then the aggregate amount payable by the Revenue Commissioners to that company under those sections shall not exceed the greater of—

(a) the aggregate of the corporation tax paid by the company in respect of accounting periods ending in the 10 years immediately preceding the time specified in subsection (4A)(b) of section 766, in relation to the accounting period in which the expenditure was incurred, as reduced by any amounts payable to the company in respect of claims made under section 766(4B) or 766A(4B), as the case may be, in respect of expenditure in a previous accounting period, or

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(b) the aggregate of the amounts payable by the company in respect of payroll liabilities for the accounting period in which the expenditure was incurred.

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(b) the aggregate of the amounts payable by the company in respect of payroll liabilities for the relevant payroll period in which the expenditure was incurred as reduced by the lesser of—

(i) the amount by which the aggregate of any amounts payable to the company in respect of claims made under section 766(4B) or 766A(4B), as the case may be, in respect of expenditure incurred in a previous accounting period, exceeds the payroll liabilities in respect of the period—

(I) beginning at the time that the accounting period in respect of which the first such claim was made begins, and

(II) ending at the time the accounting period immediately preceding the accounting period in which the expenditure was incurred ends,

and

(ii) the amount of the payroll liabilities for the period—

(I) beginning at the time at which the relevant payroll period begins, and

(II) ending at the time the accounting period immediately preceding the accounting period in which the expenditure was incurred [4]>ends.<[4][4]>ends, or<[4]

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(c) the aggregate amount of twice the payroll liabilities for each income tax month, within the meaning of section 983, that forms part of the relevant accounting period of a relevant micro or small sized company in which the expenditure is incurred.

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(4) This section shall not apply in respect of a claim made under section 766(4B) or 766A(4B) in a return the specified return date (within the meaning of Part 41A) of which is on or after 23 September 2023.

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Inserted by F(No.2)A08 s36. This section is deemed to have come into force and takes effect as on and from 1 January 2009.

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Substituted by F(No.2)A11 s1(1)(a). This section applies to accounting periods commencing on or after the passing of this Act.

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Substituted by F(No.2)A11 s1(1)(b). This section applies to accounting periods commencing on or after the passing of this Act.

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Substituted by FA19 s25(4)(a). Applies as respects accounting periods beginning on or after the date of passing of this Act.

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Inserted by FA19 s25(4)(b). Comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or different provisions.

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Inserted by FA22 s27(3). Comes into operation on 1 January 2023.