Revenue Note for Guidance

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Revenue Note for Guidance

889 Returns of fees, commissions, etc. paid by certain persons

Summary

This section imposes an obligation on persons carrying on a trade or business to provide, when required to do so by notice in writing from an inspector —

  • a return of all payments relating to services rendered by persons ordinarily resident in the State who are not employed in the trade or business, or
  • a return of all periodical or lump sum payments made to persons ordinarily resident in the State in respect of copyright.

The section imposes a similar obligation on bodies of persons carrying on an activity which is not a trade or business.

Details

(1) “tax reference number” has the meaning set out in section 885.

References to payments for services include payments in respect of commissions of any kind and in respect of expenses incurred in the rendering of services.

The section also applies to payments in non-cash form (for example, exchange of goods, etc.).

(2) Persons carrying on a trade or business must, when required to do so by an inspector, provide details of certain payments. The payments concerned are —

  • payments made in the course of the trade or business for services rendered by persons (excluding employees) who are ordinarily resident in the State,
  • payments in connection with the formation, acquisition, development or disposal of the trade or business for services rendered by persons (excluding employees) who are ordinarily resident in the State,
  • periodical or lump sum payments in respect of any copyright made to persons (excluding employees) who are ordinarily resident in the State.

(3) Bodies of persons (including Ministers of the Government and statutory bodies) must, when required to do so by an inspector, also provide details of certain payments. The payments in this instance are —

  • payments made in the course of carrying on the activity for services rendered by persons (excluding employees) who are ordinarily resident in the State,
  • periodical or lump sum payments in respect of any copyright made to persons (excluding employees) who are ordinarily resident in the State.

(4) Where the trade, business or other activity is carried on by an unincorporated body of persons, the person responsible for providing the information to the inspector is the person who is, or performs the duties of, secretary.

(5) The return of information has to include —

  • the name, tax reference, business name and business or home address of the person who received payment,
  • the amount of the payment,
  • details of the services or rights in respect of which the payment was made, and
  • the period over which the services were rendered.

(6) The return under this section also includes payments made by the person or body of persons in the course of the trade, business or activity on behalf of another person.

(7) Excluded from the scope of the section are —

  • details of payments from which tax is deductible,
  • details of payments to any one person which do not exceed €635 (in practice, this €635 limit is adjusted to €3,810 [see Statement of Practice SP-IT/1/92]),
  • details of payments made in a year of assessment which ended more than 3 years before the notice was served by the inspector.

(8) The penalty for failure to submit a correct return on time is €3,000.

(10) In proceedings for the recovery of penalties, a certificate from an officer of the Revenue Commissioners certifying that a return under this section has not been received is evidence until the contrary is proven.

Relevant Date: Finance Act 2021