459 General provisions relating to allowances, deductions and reliefs

Summary

This section ensures that personal tax reliefs are not available in respect of income used to pay certain annual payments, etc. It also provides the method of granting such reliefs and sets out the criteria required to support a claim for them.

Details

Charges, annual payments, etc

(1) An individual is not entitled to any relief specified in the Table to section 458 to the extent that such relief is used to reduce any income the tax on which the individual is entitled to charge against any other person or to deduct, retain or satisfy out of any payment which the individual is liable to make to any other person. This ensures that the individual remains liable for income tax withheld from annual payments, etc.

Granting of reliefs

(2) Any of the reliefs specified in the Table to section 458 may be given either by discharge or reduction in the individual’s income tax assessment or by repayment of the excess tax paid.

Claims

(3) Except as provided below, a claim for any relief must be accompanied by a declaration and statement in the prescribed form signed by the claimant setting out —

• his/her sources of income and the amount of such income,
• the amounts of yearly interest or annual payments which have been or may be used to reduce the claimant’s income, and
• (4) any sum which the claimant is entitled to deduct income tax from and in respect of which the claimant is liable for the amount so deducted.

The claim is to be made and proved in the same way as tax under Schedule D is ascertained and charged. In the case of an individual who is not resident in the State, the individual may prove his/her entitlement by submitting a sworn affidavit (stating the required particulars). The affidavit must be sworn by oath before a person authorised to administer in the place where the individual resides an oath relating to the public revenue of Ireland. Where an individual can prove that he/she is unable to attend in person, a claim on that individual’s behalf may be made by any guardian, trustee, attorney, agent or factor acting for the claimant. A person assessable on behalf of any other person may make a claim on that other person’s behalf.

(5) The requirement that a claim must be accompanied by a declaration and statement in the prescribed form setting out details of the claimant’s income etc., does not apply where the claim is —

1. for the purposes of the operation of PAYE, or
2. in relation to a claim for repayment of tax deducted under PAYE.

A self-employed person with PAYE income is covered by (a), but not (b) – in that instance they continue to be obliged to submit a return of income.

(6) Where on the basis of information in their possession – either by way of section 894A or otherwise – the Revenue Commissioners are satisfied as to the entitlement of a taxpayer to a relief, the relief may, if considered appropriate, be granted to the taxpayer notwithstanding any requirement for the taxpayer to claim and prove title to the relief.

Relevant Date: Finance Act 2021