530F Obligation on principals to deduct tax.
(1) A principal to whom a deduction authorisation is issued under section 530D shall deduct tax from the relevant payment concerned only in accordance with the terms of the deduction authorisation.
(2) Subject to subsection (3), a principal to whom section 530A applies who makes a relevant payment to a subcontractor in circumstances other than those referred to in subsection (1) shall—
(a) be liable to pay tax to the Revenue Commissioners at the rate of 35 per cent on the amount of the relevant payment, and
(b) without prejudice to any other penalty to which the principal 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, unless the principal submits the details of the relevant payment in the return required under section 530K for the period concerned, on or before the due date for that return.
>(a) Where subsection (2)(a) applies and the principal submits the details of the relevant payment in a return for the relevant return period, the Revenue Commissioners shall establish the amount of tax that would have been due from the principal in respect of that payment had the rate of tax been the rate of tax last notified by the Revenue Commissioners to the sub-contractor concerned under section 530I and, notwithstanding subsection (2)(a), the tax due from the principal in respect of that payment by virtue of that subsection shall be the amount so established.<
(b) Where paragraph (a) applies, the Revenue Commissioners shall notify the principal of whether any adjustment to his liability for the period arises on account of the application of that paragraph and the Revenue Commissioners may include provision in any regulations made by them under this Chapter to give effect to this subsection.
(4) Where a principal makes a relevant payment to a subcontractor, the principal shall issue a copy of the deduction authorisation in relation to that payment to the sub-contractor.
(5) The amount of tax which a principal is liable to deduct under subsection (1) from a relevant payment shall be due and payable by the principal concerned to the Revenue Commissioners in respect of the return period in which the payment is made.
(6) The amount of tax which a principal is liable to pay to the Revenue Commissioners by virtue of subsection (2)(a) shall be due and payable by the principal concerned to the Revenue Commissioners in respect of the return period in which the payment is made.