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Taxes Consolidation Act, 1997 (Number 39 of 1997)


529C Deduction of tax from relevant payments.

(1) (a) A qualifying company making a relevant payment shall deduct from the amount of the payment the appropriate tax in relation to the payment.

(b)The specified person shall allow such deduction on the receipt of the residue of the payment.

(c)The qualifying company shall be acquitted and discharged of such amount as is represented by the deduction, as if that amount had actually been paid to the specified person.

(2) (a) A specified person shall be entitled to have the amount of the relevant payment reduced by the amount of expenditure, which was not reimbursed or is not reimbursable, that was incurred in the provision of artistic services to a qualifying company.

(b) The amount of expenditure referred to in paragraph (a) shall be computed as if the artistic services provided to the qualifying company was a separate trade and the expenditure was incurred for the purposes of that trade.

(c)A specified person may make a claim to the Revenue Commissioners in respect of expenditure defrayed in accordance with paragraph (b).

(d) Where a Revenue officer is satisfied that the amount of expenditure claimed under paragraph (c) would not have been disallowed under section 81 if the specified person had provided the services directly to the qualifying company by carrying on a trade or profession chargeable to tax under Case I or Case II, then a Revenue officer shall issue a notification to the qualifying company specifying the amount of expenditure that shall be allowed as a deduction under paragraph (a).

(e) On receipt of a notification issued under paragraph (d), the qualifying company shall deduct the appropriate tax from the amount of the relevant payment after allowing the deduction in the notification issued under paragraph (d).

(3) A qualifying company which makes a relevant payment to a specified person in circumstances other than those referred to in subsection (1) shall—

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

(b)without prejudice to any other penalty to which the qualifying company 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.




Inserted by F(No.2)A13 s25(1). Comes into operation on such day as the Minister for Finance may appoint by order.