Taxes Consolidation Act, 1997 (Number 39 of 1997)
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997ACredit in respect of tax deducted from emoluments of certain directors.
(1) (a) In this section—
“control” has the same meaning as in section 432;
“ordinary share capital”, in relation to a company, means all the issued share capital (by whatever name called) of the company.
(b) For the purposes of this section—
(i) a person shall have a material interest in a company if the person, either on the person’s own or with any one or more connected persons, or if any person connected with the person with or without any such other connected persons, is the beneficial owner of, or is able, directly or through the medium of other companies or by any other indirect means, to control, more than 15 per cent of the ordinary share capital of the company, and
(ii) the question of whether a person is connected with another person shall be determined in accordance with section 10.
(2) This section applies to a person to who, in relation to a company (hereafter in this section referred to as “the company”), has a material interest in the company.
(3) Notwithstanding any other provision of the Income Tax Acts or the regulations made under this Chapter, no credit for tax deducted from the emoluments paid by the company to a person to whom this section applies [5]>shall be given in any assessment<[5][5]>shall be given against the amount of tax chargeable in any assessment<[5] raised on the person or in any statement of liability sent to the person under [7]>Regulation 37 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001)<[7][7]>Regulation 28 of the Income Tax (Employments) Regulations 2018 (S.I. No. 345 of 2018)<[7] unless there is documentary evidence to show that the tax deducted has been remitted by the company to the Collector-General in accordance with the provisions of those regulations.
(4) Where the company remits tax to the Collector-General which has been deducted from emoluments [3]>paid by the company, the tax remitted<[3][3]>paid by the company in a year of assessment, the tax remitted for that year of assessment<[3] shall be treated as having been deducted from emoluments paid to persons other than persons to whom this section applies in priority to tax deducted from persons to whom this section applies.
(5) Where, in accordance with subsection (4), tax remitted to the Collector-General by the company is to be treated as having been deducted from emoluments paid by the company to persons to whom this section applies, the tax to be so treated shall, if there is more than one such person, be treated as having been deducted from the emoluments paid to each such person in the same proportion as the emoluments paid to the person bears to the aggregate amount of emoluments paid by the company to all such persons.
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(6) Where, in accordance with subsection (5), the tax to be treated as having been deducted from the emoluments paid to each person to whom this section applies exceeds the actual amount of tax deducted from the emoluments of each person, then the amount of credit to be given for tax deducted from those emoluments shall not exceed the actual amount of tax so deducted.
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(7) Notwithstanding section 960G and for the purposes of the application of this section, where a company has an obligation to remit any amount by virtue of the provisions of—
(a) the Social Welfare Consolidation Act 2005 and regulations made under that Act, as respects employment contributions,
(b) Part 18D and regulations made under that Part, as respects universal social charge, and
(c) this Chapter and regulations made under this Chapter, as respects income tax,
any amount remitted by the company for a year of assessment shall be set—
(i) firstly against employment contributions,
(ii) secondly against universal social charge, and
(iii) lastly against income tax.
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(8) Where any person is aggrieved by a decision of the Revenue Commissioners on a claim for credit for tax deducted from emoluments, in so far as that decision is made by reference to any provision of this section, the provisions of section 949 shall apply to such decision as if it were a determination on a matter referred to in section 864.
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(8) A person aggrieved by a decision of the Revenue Commissioners in relation to a claim by that person for credit for tax deducted from emoluments, in so far as the decision was made by reference to any provision of this section, may appeal that decision to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of that decision.
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Inserted by FA05 s13. Applies as respects the year of assessment 2005 and subsequent years of assessment.
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Inserted by FA10 s8. As respects the year of assessment 2010 and subsequent years of assessment.
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Substituted by FA12 s15(g). Deemed to have come into force and takes effect on and from 1 January 2012.
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Inserted by FA12 s15(h). Deemed to have come into force and takes effect on and from 1 January 2012.
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Substituted by FA13 sched1(part2)(j). Applies— (a) in the case of a chargeable period (within the meaning of section 321(2)) which is an accounting period of a company, as respects chargeable periods that start on or after 1 January 2013, and (b) in a case other than that referred to in paragraph (a), as respects the year of assessment (within the meaning of section 2(1)) 2013 and subsequent years of assessment.
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Substituted by F(TA)A15 s39(8)(g). With effect from 21 March 2016 per S. I. No 110 of 2016.