Severance agreement includes damages
13/06/1997
Query
Whether the item included in the severance agreement and described as "Damages" is liable to tax.
Decision
A payment made in consideration or in consequence of, or otherwise in connection with the termination of an employment - however described - is chargeable to tax under S123 TCA 1997, unless it is otherwise chareable to tax
Income Tax
Section 123, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT 97 1533