Income Tax (Employments) Regulations, 2003
Statutory Instruments
Source: Statutory Instruments

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paragraphs: (1) These Regulations may be cited as the Income Tax (Employments) Regulations 2003.
(2) These Regulations come into operation on 1 January 2004.
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paragraphs: In these Regulations, “Principal Regulations” means the Income Tax (Employments (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001 ).
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paragraphs: The Principal Regulations are amended—
(a) in Regulation 2—
(i) in paragraph (1)—
(I) by inserting the following after the definition of “inspector” —
“‘notional payment’ has the meaning assigned to it by subsection (2) of section 985A (inserted by the Finance Act 2003 ) of the Act; and
(II) by substituting the following for the definitions of “temporary tax deduction form” and “total net tax deducted”:
“ ‘temporary tax deduction form’ means any form as may be prescribed on which particulars of emoluments paid and the aggregate of —
(i) tax deducted from those emoluments and,
(ii) tax which was not so deducted, but which was remitted by the employer under section 985A(4) of the Principal Act in relation to notional payments,
are to be recorded by the employer pending receipt of a tax deduction card;
‘total net tax deducted’ means, in relation to the emoluments paid to any employee during any period, the aggregate of —
(i) the total tax deducted from those emoluments, and
(ii) tax which was not so deducted but which was remitted by the employer for that period under section 985A(4) of the Principal Act in relation to notional payments,
less any tax repaid to the employee;”, and
(ii) by inserting the following after paragraph (1)—
“(1A) In these Regulations, except where the context otherwise requires —
(a) references to a payment of emoluments shall include references to notional payments in respect of emoluments and
(b) references to tax deducted or to be deducted, or to a requirement to deduct tax, from a payment of emoluments shall include references to —
(i) tax deducted or to be deducted, or to a requirement to deduct tax, from the payment, and
(ii) tax remitted or to be remitted, or a requirement to remit tax, under section 985A(4) of the Principal Act,
in respect of notional payments, as the circumstances may require,
and cognate words shall be construed accordingly.”,
(b) by inserting the following after Regulation 16—
“Deduction of tax in respect of notional payments.
16A.— The obligation on an employer to deduct tax in respect of a notional payment shall have effect as an obligation to deduct tax due on that payment from any payment or payments of emoluments actually made by the employer to or on behalf of the employee on —
(a) the day the notional payment is made, or
(b) if there is no actual payment of emoluments made to the employee on that day, the next pay day following the time when the notional payment is made,
and where, by reason of an insufficiency of payments of emoluments actually made to or on behalf of the employee, the employer is liable to remit under section 985A(4) of the Principal Act an amount of income tax which the employer was unable to deduct from such payments, the employer shall be liable to remit that amount of tax to the Revenue Commissioners as if the amount to be remitted had been deducted in accordance with this Regulation.
Tax borne by the employer in respect of notional payments.
16B.— Where tax in respect of a notional payment is remitted by the employer in accordance with subsection (4) of section 985A of the Principal Act and subsection (5) of that section applies, the notional payment in respect of the emolument referred to in that subsection (5) shall be treated as if it were made on 31 March in the year of assessment in which the emolument is treated as arising.”,
(c) by inserting the following after Regulation 17—
“Deduction of tax in respect of certain notional payments.
17A.—(1) This Regulation applies to emoluments being—
(a) the benefit of the private use of a car which is chargeable to tax by virtue of section 121 of the Act,
(b) the benefit of the private use of a van which is chargeable to tax by virtue of section 121A of the Act,
(c) the benefit arising from a preferential loan which is treated as a perquisite for the purposes of section 112 by virtue of section 122 of the Act, or
(d) a benefit arising from an asset which belongs to the employer and the valuation of which is determined in accordance with subsection (3) of section 119 of the Act.
(2) Where, a notional payment for a year is in respect of an emolument to which this Regulation applies—
(a) the amount of the notional payment for the year in relation to the emolument shall be apportioned over the period (referred to in subparagraph (b) as the “period of benefit”) for which the benefit is available in that year, and
(b) the employer shall deduct tax in accordance with this Part of these Regulations or remit tax under section 985A(4) of the Principal Act by reference to the part of the notional payment for the year apportioned to each week, where the employee is paid weekly, or month, where the employee is paid monthly, in the period of benefit.”,
(d) in Regulation 28—
(i) by substituting the following for paragraph (1) —
“(1) Within 14 days from the end of every income tax month the employer shall remit to the Collector-General the total of —
(a) all amounts of tax which the employer was liable under these regulations to deduct from emoluments paid by the employer during that income tax month, and
(b) any amount of tax that was not so deducted but which the employer was liable, in accordance with section 985A(4) of the Act, to remit, in respect of that income tax month, to the Collector-General in respect of notional payments made by the employer,
reduced by any amounts which the employer was liable under these Regulations to repay during that income tax month.”, and
(ii) by substituting the following for paragraphs (3) and (4):
“(3) If the amount which the employer is liable to remit to the Collector-General under paragraph (1) of this Regulation exceeds the amount of the total net tax deducted in relation to emoluments paid by the employer during the relevant income tax month, the Revenue Commissioners, on being satisfied that the employer took reasonable care to comply with the provisions of Chapter 4 of Part 42 of the Principal Act and these Regulations and that the under-deduction was due to an error made in good faith, may direct that the amount of the excess shall be recovered from the employee, and where they so direct, the employer shall not be liable to remit the amount of the excess to the Collector-General.
(4) If the amount which the employer is liable to remit to the Collector-General under paragraph (1) of this Regulation exceeds the amount of the total net tax deducted in relation to emoluments paid by the employer during the relevant income tax month and the Revenue Commissioners are of the opinion that an employee has received his or her emoluments knowing that the employer has wilfully failed to either deduct therefrom or to remit in respect thereof in accordance with section 985A(4) of the Principal Act an amount of tax which the employer was liable to deduct or so remit under these Regulations, the Revenue Commissioners may direct that the amount of the excess shall be recovered from the employee, and where they so direct, the employer shall not be liable to remit the amount of the excess to the Collector-General.”,
(e) in Regulation 29, by substituting the following for paragraph (1) —
“(1) Notwithstanding the provisions of Regulation 28, the Collector-General may, from time to time, authorise, in writing, an employer (unless the employer objects) to remit to him or her within 14 days from the end of a period longer than an income tax month but not exceeding a year (which in this Regulation and in Regulation 30 is referred to as the ‘accounting period’) the total of—
(a) all amounts of tax which the employer was liable under these regulations to deduct from emoluments paid by the employer during that accounting period, and
(b) any amount of tax that was not so deducted but which the employer was liable, in accordance with section 985A(4) of the Act, to remit, in respect of that accounting period, to the Collector-General in respect of notional payments made by the employer,
reduced by any amounts which the employer was liable under these Regulations to repay during that accounting period.”,
(f) in Regulation 31 (1) —
(i) by substituting the following for paragraph (a) —
“(a) in such form as the Revenue Commissioners may approve or prescribe a return in respect of each employee showing the total amount of the emoluments, including emoluments in the form of notional payments paid by the employer to or on behalf of the employee during the year and the total net tax deducted from the emoluments,”, and
(ii) by substituting the following for paragraph (d) —
“(d) a statement, declaration and certificate in the prescribed form showing-
(i) the total amount of notional payments paid by the employer to or on behalf of every employee during the year, and
(ii) the total net tax deducted or repaid by the employer in respect of every employee during the year.”,
(g) in Regulation 32, by substituting the following for paragraph (1) —
“(1) Upon request made to him or her at any premises of an employer by an authorised officer, any person, being the employer or a person employed by the employer at the premises, shall produce to the authorised officer for inspection all wages sheets, certificates of tax credits and standard rate cut-off point, tax deduction cards, and other documents and records whatsoever relating to the calculation or payment of the emoluments, including notional payments, of employees of the employer or the deduction of tax from, or the remittance of tax under section 985A(4) of the Principal Act in respect of, such emoluments as may be in that person's powers, possession or procurement.”,
and
(h) in Regulation 41—