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Taxes Consolidation Act, 1997 (Number 39 of 1997)


986A. Payment made without deduction of income tax

(1) This section applies to emoluments in respect of which an employer, on the making of a payment of those emoluments to an employee, fails to deduct and remit income tax in accordance with this Chapter or regulations made under this Chapter where—

(a)the emoluments do not form part of a qualifying incentive within the meaning of section 112B, and

(b)the emoluments are not subject to an agreement under section 985B,

and the employer—

(i)has not deducted income tax in respect of any emoluments paid to the employee, or

(ii)has disguised, by omission or otherwise, the making or the nature of the payment in its books or records.

(2)Where an employee is in receipt of any emoluments to which this section applies, the employer shall be treated for the purposes of this Chapter and regulations made under this Chapter as making a payment of an amount equal to the amount referred to in subsection (3).

(3)The amount referred to in this subsection is the aggregate of—

(a) the amount of the payment referred to in subsection (1), and

(b) an amount of income tax, for the purpose of the calculation of which the amount of that payment is deemed to be the amount to which the recipient would be entitled after the deduction of income tax.


(4) The amount referred to in subsection (3) shall, notwithstanding sections 18 and 19, be an amount chargeable to tax under Schedule E on the employee concerned.





Inserted by FA17 sched1(4)(f). Applies for the year of assessment 2018 and each subsequent year of assessment in respect of emoluments paid on or after 1 January 2018.



Inserted by FA18 s58(1)(u).