787T Discharge of administrator from tax

Summary

This section provides for the discharge of a pension scheme administrator from the charge to tax in certain circumstances. As the scheme administrator may in certain cases be reliant on information being supplied by the individual, in order to determine if a chargeable excess arises, it could arise that incorrect tax is accounted for to Revenue because the administrator, though acting bona fides, was operating on incomplete or incorrect information provided. Where the administrator acted in good faith, their liability to the tax may be waived by Revenue.

Details

(1) Where an administrator reasonably believed that a BCE did not give rise to a chargeable excess or that the amount of a chargeable excess (and therefore the tax arising on it) was less than it should have been, the administrator may apply to Revenue to be discharged from any liability arising from the error.

(2) & (3) Where Revenue, having received an application under subsection (1), and having had regard to all of the circumstances, are of the opinion that it would not be just and reasonable for the administrator to be made liable for the liability, they may discharge the administrator and notify him of that decision in writing. Where an administrator is discharged in accordance with subsection (2) the liability falls on the individual involved.

Relevant Date: Finance Act 2021