Revenue eBrief No. 83/18

09 May 2018

Payment made without deduction of Income Tax

A new Tax and Duty Manual Part 42-04-66 explains the operation of the 're-grossing' provisions of section 986A of the Taxes Consolidation Act (TCA) 1997 (which was introduced by section 77 Finance Act 2017).

Section 986A TCA 1997 addresses the non-operation of PAYE in certain circumstances where an employer makes a payment to an employee or director, but fails to deduct and remit tax as required under the PAYE system of tax deduction. The section applies with effect from 1 January 2018, in respect of the tax years 2018 onwards. 

The Manual explains the circumstances in which re-grossing will apply and the rate at which to re-gross.