{"id":11180,"date":"2022-04-19T19:27:40","date_gmt":"2022-04-19T19:27:40","guid":{"rendered":"http:\/\/legalblog.ie\/?p=11180"},"modified":"2024-04-03T20:01:11","modified_gmt":"2024-04-03T20:01:11","slug":"employment-deductions","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/employment-deductions\/","title":{"rendered":"Employment Deductions"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#General\" title=\"General\">General<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Deductions\" title=\"Deductions\">Deductions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Benefits_in_Kind_Tax\" title=\"Benefits in Kind Tax\">Benefits in Kind Tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Allowable_expenses\" title=\"Allowable expenses\">Allowable expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Standard_Expenses\" title=\"Standard Expenses\">Standard Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Travel_Expenses\" title=\"Travel Expenses\">Travel Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Training_Course\" title=\"Training Course\">Training Course<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Moving_Expenses\" title=\"Moving Expenses\">Moving Expenses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#General_Exemptions\" title=\"General Exemptions\">General Exemptions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Directors_meetings\" title=\"Directors meetings\">Directors meetings<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/legalblog.ie\/employment-deductions\/#Reporting_Certain_Benefits\" title=\"Reporting Certain Benefits\">Reporting Certain Benefits<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#TAXES_CONSOLIDATION_ACT\" title=\"TAXES CONSOLIDATION ACT\">TAXES CONSOLIDATION ACT<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Part_5_Principal_Provisions_Relating_to_the_Schedule_E_Charge_ss_112-128F\" title=\"Part 5 Principal Provisions Relating to the Schedule E Charge (ss. 112-128F)\">Part 5 Principal Provisions Relating to the Schedule E Charge (ss. 112-128F)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Basis_of_assessment_persons_chargeable_and_extent_of_charge\" title=\"Basis of assessment, persons chargeable and extent of charge.\">Basis of assessment, persons chargeable and extent of charge.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Taxation_of_certain_perquisites\" title=\"Taxation of certain perquisites.\">Taxation of certain perquisites.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Taxation_of_certain_perquisites_employees_of_authorised_insurers_and_tied_health_insurance_agents\" title=\"Taxation of certain perquisites: employees of authorised insurers and tied health insurance agents.\">Taxation of certain perquisites: employees of authorised insurers and tied health insurance agents.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Granting_of_vouchers\" title=\"Granting of vouchers.\">Granting of vouchers.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Making_of_deductions\" title=\"Making of deductions.\">Making of deductions.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#General_rule_as_to_deductions\" title=\"General rule as to deductions.\">General rule as to deductions.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Deduction_in_respect_of_certain_expenses_of_remote_working\" title=\"Deduction in respect of certain expenses of remote working.\">Deduction in respect of certain expenses of remote working.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Fixed_deduction_for_certain_classes_of_persons\" title=\"Fixed deduction for certain classes of persons.\">Fixed deduction for certain classes of persons.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Expenses_allowances_and_provisions_relating_to_the_general_benefits_in_kind_charge_ss_116-120B\" title=\"Expenses allowances and provisions relating to the general benefits in kind charge (ss. 116-120B)\">Expenses allowances and provisions relating to the general benefits in kind charge (ss. 116-120B)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Interpretation_Chapter_3\" title=\"Interpretation (Chapter 3).\">Interpretation (Chapter 3).<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Expenses_allowances\" title=\"Expenses allowances.\">Expenses allowances.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Benefits_in_kind_general_charging_provision\" title=\"Benefits in kind: general charging provision.\">Benefits in kind: general charging provision.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Costs_and_expenses_in_respect_of_personal_security_assets_and_services\" title=\"Costs and expenses in respect of personal security assets and services.\">Costs and expenses in respect of personal security assets and services.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Revenue_approved_salary_sacrifice_agreements\" title=\"Revenue approved salary sacrifice agreements.\">Revenue approved salary sacrifice agreements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Valuation_of_benefits_in_kind\" title=\"Valuation of benefits in kind.\">Valuation of benefits in kind.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Unincorporated_bodies_partnerships_and_individuals\" title=\"Unincorporated bodies, partnerships and individuals.\">Unincorporated bodies, partnerships and individuals.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Exemption_from_benefit-in-kind_of_certain_childcare_facilities\" title=\"Exemption from benefit-in-kind of certain childcare facilities.\">Exemption from benefit-in-kind of certain childcare facilities.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Certain_benefits_in_kind_members_of_Permanent_Defence_Force\" title=\"Certain benefits in kind: members of Permanent Defence Force.\">Certain benefits in kind: members of Permanent Defence Force.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Other_benefit_in_kind_charges_ss_121-122A\" title=\"Other benefit in kind charges (ss. 121-122A)\">Other benefit in kind charges (ss. 121-122A)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Benefit_of_use_of_car\" title=\"Benefit of use of car.\">Benefit of use of car.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Benefit_of_use_of_van\" title=\"Benefit of use of van.\">Benefit of use of van.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Preferential_loan_arrangements\" title=\"Preferential loan arrangements.\">Preferential loan arrangements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Notional_loans_relating_to_shares_etc\" title=\"Notional loans relating to shares, etc.\">Notional loans relating to shares, etc.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#General_tax_treatment_of_payments_on_retirement_or_removal_from_office_or_employment\" title=\"General tax treatment of payments on retirement or removal from office or employment.\">General tax treatment of payments on retirement or removal from office or employment.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_certain_severance_payments\" title=\"Tax treatment of certain severance payments.\">Tax treatment of certain severance payments.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_payments_made_pursuant_to_an_order_under_section_2B_of_Employment_Permits_Act_2003\" title=\"Tax treatment of payments made pursuant to an order under section 2B of Employment Permits Act 2003.\">Tax treatment of payments made pursuant to an order under section 2B of Employment Permits Act 2003.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_benefits_received_under_permanent_health_benefit_schemes\" title=\"Tax treatment of benefits received under permanent health benefit schemes.\">Tax treatment of benefits received under permanent health benefit schemes.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_certain_benefits_payable_under_Social_Welfare_Acts\" title=\"Tax treatment of certain benefits payable under Social Welfare Acts.\">Tax treatment of certain benefits payable under Social Welfare Acts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_restrictive_covenants\" title=\"Tax treatment of restrictive covenants.\">Tax treatment of restrictive covenants.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_members_of_the_European_Parliament\" title=\"Tax treatment of members of the European Parliament.\">Tax treatment of members of the European Parliament.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_directors_of_companies_and_employees_granted_rights_to_acquire_shares_or_other_assets\" title=\"Tax treatment of directors of companies and employees granted rights to acquire shares or other assets.\">Tax treatment of directors of companies and employees granted rights to acquire shares or other assets.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Deferral_of_payment_of_tax_under_section_128\" title=\"Deferral of payment of tax under section 128.\">Deferral of payment of tax under section 128.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Payment_of_tax_under_section_128\" title=\"Payment of tax under section 128.\">Payment of tax under section 128.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_directors_and_employees_who_acquire_convertible_securities\" title=\"Tax treatment of directors and employees who acquire convertible securities.\">Tax treatment of directors and employees who acquire convertible securities.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_directors_of_companies_and_employees_who_acquire_restricted_shares\" title=\"Tax treatment of directors of companies and employees who acquire restricted shares.\">Tax treatment of directors of companies and employees who acquire restricted shares.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-49\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Tax_treatment_of_directors_of_companies_and_employees_who_acquire_forfeitable_shares\" title=\"Tax treatment of directors of companies and employees who acquire forfeitable shares.\">Tax treatment of directors of companies and employees who acquire forfeitable shares.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-50\" href=\"https:\/\/legalblog.ie\/employment-deductions\/2\/#Key_Employee_Engagement_Programme\" title=\"Key Employee Engagement Programme.\">Key Employee Engagement Programme.<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"General\"><\/span>General<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Expenses paid, which are not the reimbursement of deductible expenses are taxable under Schedule E. Payments that are a reimbursement of actual deductible expenses are not taxable.<\/p>\n<p>Where payments are received on account of expenses, they may be deductible, provided that they were incurred in carrying out of the employment. Vouchers and proof should be obtained and retained for the purpose of justifying the deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Deductions\"><\/span>Deductions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Deductions from gross income, which are allowed in computing taxable employment income are narrow and limited. The expenses must be wholly, exclusively and necessarily incurred in the performance of the employment. This contrasts with the case of a sole trader or independent contractor, where the test of deductability of expenses in computing trading income is much more liberal.<\/p>\n<p>Expenses of travelling to and from work are not allowed but travelling expenses during work hours for work purposes are generally allowed. Expenses must be necessarily incurred in the performance of employment duties. Expenses incurred in staying in a hotel near the place of employment would not be allowed, as the person could stay at home. In contrast, hotel expenses incurred during trips far away or abroad, would generally be allowed.<\/p>\n<p>The requirement for \u201cnecessity\u201d makes the test quite narrow. Expenses incurred on courses required to make progress in employment, have not been allowed on the basis that they are not necessary for the current duties of the employment. Course necessarily required for the employment would be allowed.<\/p>\n<p>Where expenses can be apportioned between those which are wholly and necessary for employment and otherwise, the apportioned expense may be allowed.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Benefits_in_Kind_Tax\"><\/span>Benefits in Kind Tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Originally, taxable benefits in kind were limited to those which could be turned into money (and taxed accordingly). Because certain benefits in kind could not necessarily be turned into money, further legislation was introduced taxing such benefits on the basis of their cost to the employer. The market value at the time of transfer of the benefit is assessed.<\/p>\n<p>Where the benefit is provided by the employer, the cost to the employer is the value which is assessed. This may mean that a staff discount, which does not represent an explicit cost to the employer, may not be taxable.<\/p>\n<p>There are special rules for the valuation of certain types of benefit. The are artificial rules relating to the valuation of cars. Where property is enjoyed in kind, the annual value is generally assessed. Preferential loans are assessed by reference to the difference between a specified \u201cnormal\u201d rate and the rate charged.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Allowable_expenses\"><\/span>Allowable expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The categories of expenses allowable under Schedule E criteria are narrow. The expenses must be necessarily, wholly, exclusively and necessarily incurred in the performance of duties of the office or employment.<\/p>\n<p>The expenses may be paid directly by the employer or reimbursed. Where they are reimbursed they may qualify as not being subject to tax and PAYE. Where they are not reimbursed and are wholly exclusively and necessarily incurred in the performance of the duties the employee is usually entitled to a deduction. This may be applied for to revenue.<\/p>\n<p>Where the reimbursement is on the basis of expenses incurred they must be reasonably incurred. The records must be maintained and available upon audit.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Standard_Expenses\"><\/span>Standard Expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Certain expenses are generally allowed. These include expenditure on tools, clothes and special protective equipment required for the performance of duties.In practice, Revenue may agree to allow round sum deductions of approximate expenses by way of deductions operated against PAYE. As an alternative, the employee may be able to compute and prove the expenses actually incurred, in which case the round figure sums are not applied.<\/p>\n<p>Revenue publish lists of flat rate expenses for particular occupations. These are automatically allowed without the proof that the expenses have been incurred. An application may be made to adjust the tax credit certificate to allow them. Unreceipted round sum expenses are taxable unless they fall within one of the categories or basis for exemption allowed apply (e.g. round sum expenses civil service mileage rate et cetera).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Travel_Expenses\"><\/span>Travel Expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>In the case of traveling expenses, the employee or office holder must be necessarily obliged to incur the expenses of traveling in the performance of the duties of office or employment Expenses incurred before employment begins, such as the cost of transport to bring the employee to the place of employment are not deductible.<\/p>\n<p>A distinction is drawn between travelling to the normal place of work and travelling between places of work. Where the employee is working outside of normal hours generally taken as 10 PM, a deduction may be permitted. The cost of transport in the course of employment, going from one place to another for the purpose of employment is deductible.<\/p>\n<p>In the case of traveling expenses, the employee may be reimbursed on the basis of civil service distance-based rates or on the basis of vouched travel expenditure. Revenue allow motoring expenses to be paid or reimbursed at certain published civil service mileage rates.The allowances per kilometre published are relative to the length of journey and the engine capacity of the car. Subsistence rates for overnight stays are published.<\/p>\n<p>The expenses of a business trip whereby the employee is required to travel in the performance of duties for a temporary period will usually be deductible. The cost of travel from home to place of work will not generally be allowed but may be permitted on the basis that it is the lesser of the distance between home and the place visited and the normal place of employment and the place visited.<\/p>\n<p>The Revenue have indicated that deduction of travel expenses is allowed where persons attend their base of employment outside normal working hours to deal with an emergency. Conditions apply. This could include going home for force majeure reasons. The travel expenses to and from the place of work may be permissible up to a maximum number of emergencies per annum.<\/p>\n<p>The Revenue have published guidelines on motoring expenses. The reimbursement of motoring expenses in accordance with the guidelines, does not require prior approval.<\/p>\n<p>There is a parking levy of \u20ac200 in the five City Council areas (not commenced). There are exemptions for job shares and part-time workers.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Training_Course\"><\/span>Training Course<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Training courses undertaken in the course of employment are not generally deductible unless they are necessary for the purpose of the current employment. Courses which advance the person in employment are not necessary for this purpose.<\/p>\n<p>Many courses are deemed to be preparatory for the duties of employment and not in the performance of the duties and hence not permissible as a deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Moving_Expenses\"><\/span>Moving Expenses<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Certain subsistence payments, paid to employees assigned from abroad to work temporarily in Ireland, are permissible under Revenue published practice.<\/p>\n<p>Revenue has published a statement of practice regarding expenses incurred by an employee in moving homes, in order take up employment with an existing employer or with a new employer. Subject to the criteria in the statement of practice, certain expenses may be allowed without prior Revenue approval.<\/p>\n<p>Rent for temporary accommodation up to 3 months for employee sent abroad is not treated as benefits in kind. Agents and lawyers fees as well as stamp duty may be reimbursed for an employee required to move abroad. Expenses incurred including removal of furniture storage charges insurance and certain travelling expenses connected with the removal may be allowed subject to conditions. They must be reasonable an amount and moving house must be necessary.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"General_Exemptions\"><\/span>General Exemptions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Certain benefits are exempted from tax, for policy reasons. The following are exempt from taxation as benefits in kind;<\/p>\n<p>\u2022 pension benefits subject to conditions;<br \/>\n\u2022 bicycles up to \u20ac1000; this must be used mainly for journeys to and from work on in the course of employment;<br \/>\n\u2022 security;<br \/>\n\u2022 subsidised childcare facilities, this is more limited than first appears; it only applies to provision of childcare made available by the employer itself, or with another, where the employer is wholly or partly responsible for financing or providing the facilities<br \/>\n\u2022 expenses incurred in providing certain monthly or annual bus and train tickets<br \/>\n\u2022 canteens for general staff use;<br \/>\n\u2022 living accommodation where the employee is required to live in the premises a necessary condition of employment or where such residence was conventional before 1948<br \/>\n\u2022 the provision of accommodation used solely in the performance of employment<\/p>\n<p>Since 2004 the PAYE system of deductions and payment must be applied by employers to benefits in kind. PRSI and levies was also extended to benefits in kind<br \/>\nTax treatment&#8217;s so-called termination payments<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Directors_meetings\"><\/span>Directors meetings<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Finance Act 2015 provides an exemption for vouched expenses payments by a company to non-resident, non-executive directors incurred while attending board meetings within the State. There is an exemption from income tax PRSI and USC on vouched expenses of travel and subsistence payments made by a company to a resident non-executive director.<\/p>\n<p>Finance Act 2016 Act extends this exemption to resident directors. The exemption applies to the expenses of travel and subsistence incurred solely for the purpose of attending a relevant meeting.<\/p>\n<p>A relevant meeting is a meeting held in Ireland and attended in a capacity as director for the purpose of the conduct of affairs of the company. It applies after 1st January 2017. The director must be Irish tax resident and earn more than \u20ac5,000 from that office in the tax year. The cost of travel from home to the meeting does not usually qualify, unless they are wholly exclusively and necessarily incurred for the purpose of performance of those duties.. Such expenses must be subject to PAYE deduction.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Reporting_Certain_Benefits\"><\/span>Reporting Certain Benefits<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Finance Act 2022 provide for the automatic reporting to the Revenue Commissioners by employers in respect of three specific measures, collectively referred to as \u201creportable benefits\u201d. Such reportable benefits are made without the deduction of tax. The reportable benefits are:<\/p>\n<ul>\n<li>the remote working daily allowance of \u20ac3.20,<\/li>\n<li>the payment of travel and subsistence expenses, and<\/li>\n<li>the small benefit exemption.<\/li>\n<\/ul>\n<p>The reporting of such measures \u00a0align to the preexisting mechanisms used for payroll purposes. In order to allow for stakeholder engagement on the measure, it was subject to a commencement order.<\/p>\n<p><!--nextpage--><\/p>\n<h2>TAXES CONSOLIDATION ACT<\/h2>\n<h4>Part 5 Principal Provisions Relating to the Schedule E Charge (ss. 112-128F)<\/h4>\n<p>Chapter 1 Basis of assessment, persons chargeable and extent of charge (s. 112-112B)<\/p>\n<p>112.<\/p>\n<h4>Basis of assessment, persons chargeable and extent of charge.<\/h4>\n<p>(1)Income tax under Schedule E shall be charged for each year of assessment on every person having or exercising an office or employment of profit mentioned in that Schedule, or to whom any annuity, pension or stipend chargeable under that Schedule is payable, in respect of all salaries, fees, wages, perquisites or profits whatever therefrom, and shall be computed on the amount of all such salaries, fees, wages, perquisites or profits whatever therefrom for the year of assessment.<\/p>\n<p>(2)<\/p>\n<p>(a)In this section, &#8220;emoluments&#8221; means anything assessable to income tax under Schedule E.<\/p>\n<p>(b)Where apart from this subsection emoluments from an office or employment would be for a year of assessment in which a person does not hold the office or employment, the following provisions shall apply for the purposes of subsection (1):<\/p>\n<p>(i)if in the year concerned the office or employment has never been held, the emoluments shall be treated as emoluments for the first year of assessment in which the office or employment is held, and<\/p>\n<p>(ii)if in the year concerned the office or employment is no longer held, the emoluments shall be treated as emoluments for the last year of assessment in which the office or employment was held.<\/p>\n<p>(3)Notwithstanding subsection (1) and subject to subsections (4) and (6), the income tax under Schedule E to be charged for the year of assessment 2018 and subsequent years of assessment in respect of emoluments to which Chapter 4 of Part 42 applies or is applied shall be computed on the amount of the emoluments paid to the person in the year of assessment.<\/p>\n<p>(4)Where emoluments chargeable under Schedule E arise in the year of assessment 2017, and those emoluments are also chargeable to income tax in accordance with subsection (3) for the year of assessment 2018 or a subsequent year of assessment, the amount of the emoluments chargeable to income tax for the year of assessment 2017 shall, on a claim being made by the person so chargeable, be reduced to the amount of emoluments that would have been charged to income tax had subsection (3) applied for that year of assessment.<\/p>\n<p>(5)Where a person dies and emoluments are due to be paid to that deceased person, the payment of such emoluments shall be deemed to have been made to the deceased person immediately prior to death.<\/p>\n<p>(6)<\/p>\n<p>(a)In this subsection, \u2018proprietary director\u2019 has the same meaning as it has in section 472.<\/p>\n<p>(b)Subsection (3) shall not apply to &#8211;<\/p>\n<p>(i)emoluments paid directly or indirectly by a body corporate (or by any person who is connected (within the meaning of section 10) with the body corporate) to a proprietary director of the body corporate, or<\/p>\n<p>(ii)emoluments in respect of which a notification has issued under section 984(1).<\/p>\n<p>112A.<\/p>\n<h4>Taxation of certain perquisites.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>(a)as respects so much of a payment that qualifies for relief under section 470, &#8216;appropriate percentage&#8217;, &#8216;authorised insurer&#8217;, &#8216;relevant contract&#8217; and &#8216;relievable amount&#8217; have the same meanings, respectively, as in section 470,<\/p>\n<p>(b)as respects so much of a payment that qualifies for relief under section 470B, &#8216;authorised insurer&#8217; and &#8216;relevant contract&#8217; have the same meanings, respectively, as in section 470B,<\/p>\n<p>(c)&#8217;employee&#8217; and &#8217;employer&#8217; have the same meanings, respectively, as in section 983, and<\/p>\n<p>(d)&#8217;qualifying insurer&#8217; and &#8216;qualifying long-term care policy &#8216; have the same meanings, respectively, as in section 470A.<\/p>\n<p>(2)Section 112 shall apply in relation to a perquisite comprising the payment to &#8211;<\/p>\n<p>(a)an authorised insurer under a relevant contract, or<\/p>\n<p>(b)a qualifying insurer under a qualifying long-term care policy<\/p>\n<p>as if any deduction authorised by &#8211;<\/p>\n<p>(i)in a case in which paragraph (a) applies, section 470(3)(a), or<\/p>\n<p>(ii)in a case in which paragraph (b) applies, section 470A(8)(a),<\/p>\n<p>had not been made.<\/p>\n<p>(2A)Where, for any relevant year of assessment, an employer makes a payment of emoluments to an employee consisting of a perquisite in the form of a payment to an authorised insurer under a relevant contract, and such payment qualifies for relief under section 470B for that relevant year of assessment, section 112 shall apply as if the perquisite were increased by the amount of the age-related tax credit or age-related tax credits, as the case may be, that the employee is entitled to under section 470B in respect of the payment.<\/p>\n<p>(3)Where, for any year of assessment, an employer &#8211;<\/p>\n<p>(a)makes a payment of emoluments consisting of a perquisite of the kind mentioned in subsection (2), and<\/p>\n<p>(b)deducts therefrom and retains in accordance with &#8211;<\/p>\n<p>(i)section 470(3)(a), an amount equal to the appropriate percentage for the year of assessment of the relievable amount in relation to the payment, or<\/p>\n<p>(ii)section 470A(8)(a), an amount equal to the appropriate percentage for the year of assessment of the payment,<\/p>\n<p>the employer shall be assessed and charged to income tax in an amount equal to the amount so deducted and retained and that amount shall be allowable as a deduction in charging to tax the profits or gains of such employer.<\/p>\n<p>(4)Subsections (3) to (6) of section 238 shall apply, with necessary modifications, in relation to a payment referred to in subsection (3) as they apply in relation to a payment to which that section applies.<\/p>\n<p>112AA.<\/p>\n<h4>Taxation of certain perquisites: employees of authorised insurers and tied health insurance agents.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>\u2018authorised insurer\u2019 has the meaning assigned to it by section 470;<\/p>\n<p>\u2018emoluments\u2019 has the meaning assigned to it by section 983;<\/p>\n<p>\u2018employee\u2019 includes an office holder and any person who is an employee within the meaning of section 983;<\/p>\n<p>\u2018relevant contract\u2019 means a contract of insurance, or any other agreement, arrangement or transaction, as the case may be, which provides specifically, whether in conjunction with other benefits or not, for the reimbursement or discharge, in whole or in part, of &#8211;<\/p>\n<p>(a)actual health expenses (within the meaning of section 469), being a contract of medical insurance, or<\/p>\n<p>(b)dental expenses other than expenses in respect of routine dental treatment (within the meaning of section 469), being a contract of dental insurance;<\/p>\n<p>\u2018relevant contract price\u2019 is the amount that would be payable, by an individual who is neither a relevant employee nor connected with a relevant employee, under a relevant contract, by way of a bargain made at arm\u2019s length, before deducting any amount the individual would have been entitled to deduct and retain by virtue of section 470(3)(a);<\/p>\n<p>\u2018relevant employee\u2019 means an employee of &#8211;<\/p>\n<p>(a)an authorised insurer,<\/p>\n<p>(b)a tied health insurance agent, or<\/p>\n<p>(c)any person connected with a person referred to in paragraph (a) or (b);<\/p>\n<p>\u2018tied health insurance agent\u2019 means any person who, directly or indirectly, enters into an agreement or arrangement with an authorised insurer &#8211;<\/p>\n<p>(a)whereby that person undertakes to refer all proposals of insurance, made under a relevant contract, to the authorised insurer with whom the person has made or entered into the agreement or arrangement, or<\/p>\n<p>(b)which restricts in any way that person\u2019s freedom to refer proposals of insurance, made under a relevant contract, to an authorised insurer other than the authorised insurer with whom the agreement or arrangement has been made or entered into.<\/p>\n<p>(2)This section applies where &#8211;<\/p>\n<p>(a)a relevant employee enters into a relevant contract, or<\/p>\n<p>(b)an individual connected with a relevant employee enters into a relevant contract,<\/p>\n<p>arising from, or in connection with, the employment of the relevant employee.<\/p>\n<p>(3)Where this section applies in relation to a relevant contract &#8211;<\/p>\n<p>(a)an amount determined by the formula &#8211;<\/p>\n<p>(A &#8211; B)<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the relevant contract price for the year, and<\/p>\n<p>Bis the sum of the amount paid, if any, for the year by the relevant employee and the connected individual, under the relevant contract,<\/p>\n<p>shall be treated as emoluments of the employment of the relevant employee in a year of assessment,<\/p>\n<p>(b)Chapter 3 of this Part shall not apply, and<\/p>\n<p>(c)section 112A shall not apply to the relevant employee or the employer of the relevant employee.<\/p>\n<p>(4)Where an amount is treated as emoluments in a year of assessment under this section &#8211;<\/p>\n<p>(a)for the purposes of section 470, the amount (referred to in this subsection and subsection (5) as the \u2018notional payment amount\u2019) shall be treated as if it was an amount paid &#8211;<\/p>\n<p>(i)under the relevant contract concerned to an authorised insurer by the relevant employee concerned, and<\/p>\n<p>(ii)in the year of assessment,<\/p>\n<p>and<\/p>\n<p>(b)subject to subsection (5), notwithstanding that the payment of the notional payment amount is deemed under paragraph (a) to occur after 6 April 2001 &#8211;<\/p>\n<p>(i)section 470(3) shall not apply to the notional payment amount, and<\/p>\n<p>(ii)section 470(2) shall apply to the notional payment amount as if the relevant employee concerned had made a payment under a relevant contract of that amount to an authorised insurer.<\/p>\n<p>(5)Where an amount (in this subsection referred to as the \u2018actual payment amount\u2019) is paid under the relevant contract concerned by the relevant employee concerned or an individual connected to that employee &#8211;<\/p>\n<p>(a)section 470(2) shall apply subject to the following modifications:<\/p>\n<p>(i)a reference to a payment shall be construed as a reference to an amount being the sum of the notional payment amount and the actual payment amount;<\/p>\n<p>(ii)the amount by which the income tax to be charged on the individual for the year of assessment, other than in accordance with section 16(2), is reduced shall itself be reduced by the percentage of the relevant contract price which the actual payment amount represents,<\/p>\n<p>and<\/p>\n<p>(b)section 470(3) shall apply subject to the following modifications:<\/p>\n<p>(i)a reference to a payment shall be construed as a reference to an amount being the sum of the notional payment amount and the actual payment amount;<\/p>\n<p>(ii)the amount the individual shall be entitled to deduct and retain shall be reduced by the percentage of the relevant contract price which the notional payment amount represents.<\/p>\n<p>112B.<\/p>\n<h4>Granting of vouchers.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;benefit&#8217; means a tangible asset other than cash;<\/p>\n<p>&nbsp;<\/p>\n<p>&#8216;qualifying incentive&#8217; means a relevant incentive that is the first or the second relevant incentive given to an employee in a year of assessment where &#8211;<\/p>\n<p>(a)in the case of a first relevant incentive, the value does not exceed \u20ac1,000, and<\/p>\n<p>(b)in the case of a second relevant incentive, the cumulative value of the first and second relevant incentives does not exceed \u20ac1,000;<\/p>\n<p>&#8216;relevant incentive&#8217; means either a voucher or a benefit that is given to an employee by his or her employer in a year of assessment where the following conditions are satisfied:<\/p>\n<p>(a)the voucher or the benefit does not form part of a salary sacrifice arrangement;<\/p>\n<p>(b)the voucher can only be used to purchase goods or services and cannot be redeemed, in full or in part, for cash;<\/p>\n<p>&#8216;salary sacrifice arrangement&#8217; means any arrangement under which an employee forgoes the right to receive any part of his or her remuneration due under his or her terms or contract of employment and in return his or her employer agrees to provide him or her with a relevant incentive.<\/p>\n<p>(2)A qualifying incentive shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.<\/p>\n<p>Chapter 2 Computational provisions (ss. 113-115)<\/p>\n<p>113.<\/p>\n<h4>Making of deductions.<\/h4>\n<p>(1)In this section, &#8220;emoluments&#8221; means all salaries, fees, wages, perquisites or profits or gains whatever arising from an office or employment, or the amount of any annuity, pension or stipend, as the case may be.<\/p>\n<p>(2)Any deduction from emoluments allowed under the Income Tax Acts for the purpose of computing an assessment to income tax under Schedule E shall be made by reference to the amount paid or borne for the year or portion of the year on the emoluments of which the computation is made.<\/p>\n<p>114.<\/p>\n<h4>General rule as to deductions.<\/h4>\n<p>Where the holder of an office or employment of profit is necessarily obliged to incur and defray out of the emoluments of the office or employment of profit expenses of travelling in the performance of the duties of that office or employment, or otherwise to expend money wholly, exclusively and necessarily in the performance of those duties, there may be deducted from the emoluments to be assessed the expenses so necessarily incurred and defrayed.<\/p>\n<p>114A.<\/p>\n<h4>Deduction in respect of certain expenses of remote working.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;qualifying residence&#8217; means a residential premises that is also used by a remote worker to perform the duties of his or her office or employment;<\/p>\n<p>&#8216;relevant expenses&#8217;, in relation to a remote worker, means expenses incurred and defrayed by the remote worker in respect of the provision of electricity, heating or an internet service in his or her qualifying residence;<\/p>\n<p>&#8216;remote worker&#8217; means a person who is the holder of an office or employment of profit and who performs the duties of his or her office or employment &#8211;<\/p>\n<p>(a)by working from his or her residential premises on a full-time or part-time basis, or<\/p>\n<p>(b)by working some of his or her normal working time from his or her residential premises, with the remainder of that normal working time being spent in his or her normal place of employment or in some other place;<\/p>\n<p>&#8216;residential premises&#8217; means, a dwelling or part of a dwelling which is occupied by an individual as his or her residence;<\/p>\n<p>&#8216;specified amount&#8217;, in relation to a year of assessment, means the amount of expenditure which qualifies for income tax relief in accordance with this section.<\/p>\n<p>(2)Where in any year of assessment a remote worker, having made a claim in that behalf, proves that he or she has incurred and defrayed relevant expenses out of the emoluments of the office or employment of profit, he or she shall be entitled to claim a deduction (in this section referred to as &#8216;remote working relief&#8217;) from the emoluments to be assessed in respect of the specified amount determined in accordance with subsection (4).<\/p>\n<p>(3)Subject to this section, where, for a year of assessment, an individual (in this section referred to as the &#8216;claimant&#8217;), on making a claim in that behalf, proves that relevant expenses were incurred by &#8211;<\/p>\n<p>(a)in a case in which the claimant is a married person assessed to tax for the year of assessment in accordance with section 1017 or a civil partner assessed to tax for the year of assessment in accordance with section 1031C, the claimant or his or her spouse or civil partner, or<\/p>\n<p>(b)in any other case, the claimant,<\/p>\n<p>then the claimant shall be entitled to remote working relief.<\/p>\n<p>(4)The specified amount, in relation to relevant expenses incurred by a remote worker in any year of assessment, shall be 30 per cent of an amount determined by the following formula:<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>A is the amount of the relevant expenses incurred and defrayed by the remote worker in the year of assessment,<\/p>\n<p>B is the number of days in the year of assessment the remote worker performed the duties of his or her office or employment of profit from his or her qualifying residence,<\/p>\n<p>C is the number of days in the year of assessment, and<\/p>\n<p>D is any amount reimbursed or to be reimbursed, directly or indirectly to the remote worker in relation to those expenses by his or her employer.<\/p>\n<p>(5)Where the cost of incurring and defraying relevant expenses is shared by 2 or more persons (other than a person referred to in subsection (3)(a)) residing in a qualifying residence in a year of assessment, then, for the purposes of any claim for relief under this section, the total cost of incurring and defraying those expenses in the year of assessment shall be apportioned between each of the persons concerned by reference to the amount of those expenses that were defrayed by each such person.<\/p>\n<p>(6)On making a claim under this section, a claimant shall provide to the Revenue Commissioners, through such electronic means as the Revenue Commissioners make available, full particulars of the relevant expenses, including &#8211;<\/p>\n<p>(a)a copy of the statement issued by the service provider in respect of the service provided to the qualifying residence that constitutes the relevant expenses, and<\/p>\n<p>(b)any other relevant information that may reasonably be required by the Revenue Commissioners to determine whether the requirements of this section are met.<\/p>\n<p>(7)Where relief is given under this section to any individual in respect of relevant expenses, no relief or deduction under any other provision of the Income Tax Acts shall be given or allowed in respect of those relevant expenses.<\/p>\n<p>115.<\/p>\n<h4>Fixed deduction for certain classes of persons.<\/h4>\n<p>Where the Minister for Finance is satisfied, with respect to any class of persons in receipt of any salary, fees or emoluments payable out of the public revenue, that such persons are obliged to lay out and expend money wholly, exclusively and necessarily in the performance of the duties in respect of which such salary, fees or emoluments are payable, the Minister for Finance may fix such sum as in that Minister&#8217;s opinion represents a fair equivalent of the average amount for a year of assessment so laid out and expended by persons of that class, and in charging the tax on such salary, fees or emoluments, there shall be deducted from the amount of such salary, fees or emoluments the sums so fixed by the Minister for Finance; but, if any person would but for this section be entitled to deduct a larger amount than the sum so fixed, that sum may be deducted instead of the sum so fixed.<\/p>\n<p>Chapter 3<\/p>\n<h4>Expenses allowances and provisions relating to the general benefits in kind charge (ss. 116-120B)<\/h4>\n<p>116.<\/p>\n<h4>Interpretation (Chapter 3).<\/h4>\n<p>(1)In this Chapter &#8211;<\/p>\n<p>&#8220;business premises&#8221;, in relation to a body corporate, includes all premises occupied by that body for the purpose of any trade carried on by it and, except when the reference is expressly to premises which include living accommodation, includes so much of any such premises so occupied as is used wholly or mainly as living accommodation for any of the of the body corporate or for any persons employed by the body corporate in any to which this Chapter applies;<\/p>\n<p>&#8220;business use&#8221;, in relation to the use of an asset by a person, means the use of that asset by the person in the performance of the duties of the person&#8217;s office or employment;<\/p>\n<p>&#8220;control&#8221;, in relation to a body corporate, means the power of a person to secure &#8211;<br \/>\n(a)by means of the holding of shares or the possession of voting power in or in relation to that or any other body corporate, or<br \/>\n(b)by virtue of any powers conferred by the constitution, articles of association or other document regulating that or any other body corporate,<br \/>\nthat the affairs of the first-mentioned body corporate are conducted in accordance with the wishes of that person;<\/p>\n<p>&#8220;director&#8221; means &#8211;<br \/>\n(a)in relation to a body corporate the affairs of which are managed by a board of directors or similar body, a member of that board or body,<br \/>\n(b)in relation to a body corporate the affairs of which are managed by a single director or similar person, that director or person,<br \/>\n(c)in relation to a body corporate the affairs of which are managed by the members themselves, a member of the body corporate,<br \/>\nand includes any person in accordance with whose directions or instructions the directors of a body corporate, defined in accordance with the preceding provisions of this definition, are accustomed to act, but a person shall not, within the meaning of this definition, be deemed to be a person in accordance with whose directions or instructions the directors of a body corporate are accustomed to act by reason only that those directors act on advice given by the person in a professional capacity;<\/p>\n<p>&#8220;employee&#8221; includes the holder of an office;<\/p>\n<p>&#8220;employment&#8221;, means an employment such that any emoluments of the employment would be assessed under Schedule E, and references to persons employed by, or employees of, a body corporate include any person who takes part in the management of the affairs of the body corporate and is not a director of the body corporate;<\/p>\n<p>&#8220;premises&#8221;, includes lands;<\/p>\n<p>&#8220;private use&#8221; in relation to an asset, means use of the asset other than business use.<\/p>\n<p>(2)Any reference in this Chapter to anything provided for a director or employee shall, unless the reference is expressly to something provided for the director or employee personally, be construed as including a reference to anything provided for the spouse, civil partner, family, children of the civil partner, servants, dependants or guests of that director or employee, and the reference in the definition of &#8220;business premises&#8221; to living accommodation for directors or employees shall be construed accordingly.<\/p>\n<p>(3)<\/p>\n<p>(a)Subject to subsection (4) and paragraphs (b) and (c), the employments to which this Chapter applies shall be employments the emoluments of which, estimated for the year of assessment in question according to the Income Tax Acts and on the basis that they are employments to which this Chapter applies, and without any deduction being made under section 114 in respect of money expended in performing the duties of those employments, are \u20ac1,905 or more.<\/p>\n<p>(b)Where a person is employed in 2 or more employments by the same body corporate and the total of the emoluments of those employments for the year of assessment in question estimated in accordance with paragraph (a) is \u20ac1,905 or more, all those employments shall be treated as employments to which this Chapter applies.<\/p>\n<p>(c)Where a person is a director of a body corporate, all employments in which the person is employed by the body corporate shall be treated as employments to which this Chapter applies.<\/p>\n<p>(4)All the directors of, and persons employed by, a body corporate over which another body corporate has control shall be treated for the purposes of paragraphs (b) and (c) of subsection (3) (but not for any other purpose) as if they were directors of that other body corporate or, as the case may be, as if the employment were an employment by that other body corporate.<\/p>\n<p>117.<\/p>\n<h4>Expenses allowances.<\/h4>\n<p>(1)Subject to this Chapter, any sum paid in respect of expenses by a body corporate to any of its directors or to any person employed by it in an employment to which this Chapter applies shall, if not otherwise chargeable to income tax as income of that director or employee, be treated for the purposes of section 112 as a perquisite of the office or employment of that director or employee and included in the emoluments of that office or employment assessable to income tax accordingly; but nothing in this subsection shall prevent a claim for a deduction being made under section 114 in respect of any money expended wholly, exclusively and necessarily in performing the duties of the office or employment.<\/p>\n<p>(2)The reference in subsection (1) to any sum paid in respect of expenses includes a reference to any sum put by a body corporate at the disposal of a director or employee and paid away by him or her.<\/p>\n<p>118.<\/p>\n<h4>Benefits in kind: general charging provision.<\/h4>\n<p>(1)Subject to this Chapter, where &#8211;<\/p>\n<p>(a)a body corporate incurs expense in or in connection with the provision, for any of its directors or for any person employed by it in an employment to which this Chapter applies, of &#8211;<\/p>\n<p>(i)living or other accommodation,<\/p>\n<p>(ii)entertainment,<\/p>\n<p>(iii)domestic or other services, or<\/p>\n<p>(iv)other benefits or facilities of whatever nature, and<\/p>\n<p>(b)apart from this section the expense would not be chargeable to income tax as income of the director or employee,<\/p>\n<p>then, sections 112, 114 and 897 shall apply in relation to so much of the expense as is not made good to the body corporate by the director or employee as if the expense had been incurred by the director or employee and the amount of the expense had been refunded to the director or employee by the body corporate by means of a payment in respect of expenses, and income tax shall be chargeable accordingly.<\/p>\n<p>(2)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee in any of its business premises of any accommodation, supplies or services provided for the director or employee personally and used by the director or employee solely in performing the duties of his or her office or employment.<\/p>\n<p>(3)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision of living accommodation for an employee in part of any of its business premises which include living accommodation if the employee is, for the purpose of enabling the employee properly to perform his or her duties, required by the terms of his or her employment to reside in the accommodation and either &#8211;<\/p>\n<p>(a)the accommodation is provided in accordance with a practice which since before the 30th day of July, 1948, has commonly prevailed in trades of the class in question as respects employees of the class in question, or<\/p>\n<p>(b)it is necessary in the case of trades of the class in question that employees of the class in question should reside on premises of the class in question;<\/p>\n<p>but this subsection shall not apply where the employee is a director of the body corporate in question or of any other body corporate over which that body corporate has control or which has control over that body corporate or which is under the control of a person who also has control over that body corporate.<\/p>\n<p>(4)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision of meals in any canteen in which meals are provided for the staff generally.<\/p>\n<p>(5)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee, or for the director&#8217;s or employee&#8217;s spouse, civil partner, children or dependants, or the children of the director&#8217;s or employee&#8217;s civil partner of any pension, annuity, lump sum, gratuity, contribution to a Personal Retirement Savings Account (within the meaning of Chapter 2A of Part 30), contribution to a PEPP (within the meaning of Chapter 2D of Part 30) or other like benefit to be given on the death or retirement of the director or employee.<\/p>\n<p>(5A)<\/p>\n<p>(a)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee of a monthly or annual bus, railway or ferry travel pass issued by or on behalf of one or more approved transport providers and which must be for a service for which the approved transport provider is contracted or licensed.<\/p>\n<p>(b)In this subsection &#8211;<\/p>\n<p>&#8216;approved transport provider&#8217; means &#8211;<\/p>\n<p>(i)a public transport operator within the meaning of section 2 of the Dublin Transport Authority Act 2008,<\/p>\n<p>(ii)the holder of a licence in respect of a public bus passenger service under Part 2 of the Public Transport Regulation Act 2009, or<\/p>\n<p>(iii)a person who provides a ferry service within the State, operating a vessel which holds a current valid &#8211;<\/p>\n<p>(I)passenger ship safety certificate,<\/p>\n<p>(II)passenger boat licence, or<\/p>\n<p>(III)high-speed craft safety certificate,<\/p>\n<p>issued by the Minister for Transport, Tourism and Sport.<\/p>\n<p>(5B)<\/p>\n<p>(a)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision, without any transfer of the property in it, for a director or employee of a mobile telephone for business use where private use of the mobile telephone is incidental.<\/p>\n<p>(b)The mobile telephones to which the exemption provided by this subsection applies include any mobile telephone provided in connection with a car or van notwithstanding that the vehicle is made available as referred to in section 121 or 121A, as the case may be.<\/p>\n<p>(c)In this subsection &#8216;mobile telephone&#8217; means telephone apparatus which &#8211;<\/p>\n<p>(i)is not physically connected to a land-line, and<\/p>\n<p>(ii)is not a cordless telephone.<\/p>\n<p>(d)For the purposes of paragraph (c) &#8211;<\/p>\n<p>&#8216;cordless telephone&#8217; means telephone apparatus designed or adapted to provide a wireless extension to a telephone, and used only as such an extension to a telephone that is physically connected to a land-line;<\/p>\n<p>&#8216;telephone apparatus&#8217; means wireless telegraphy apparatus designed or adapted for the purposes of transmitting and receiving either or both spoken messages and information (being information for the same purposes as the Electronic Commerce Act 2000) and connected to a public telecommunications network (as defined in the European Communities (Telecommunications Services) Regulations 1992 (S.I. No. 45 of 1992)).<\/p>\n<p>(5C)<\/p>\n<p>(a)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee of a high-speed internet connection to the director&#8217;s or employee&#8217;s home for business use where private use of the connection is incidental.<\/p>\n<p>(b)In this subsection &#8216;high-speed internet connection&#8217; means a connection capable of transmitting information (being information for the same purposes as the Electronic Commerce Act 2000) at a rate equal to or greater than 250 kilobits per second.<\/p>\n<p>(5D)<\/p>\n<p>(a)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision, without any transfer of the property in it, for a director or employee of computer equipment for business use where private use of the computer equipment is incidental.<\/p>\n<p>(b)In this section &#8216;computer equipment&#8217;, in addition to a computer, includes &#8211;<\/p>\n<p>(i)a facsimile machine, and<\/p>\n<p>(ii)printers, scanners, modems, discs, disc drives, and other peripheral devices designed to be used by being connected to or inserted in a computer and computer software to be used in such equipment.<\/p>\n<p>(5E)<\/p>\n<p>(a)Subsection (1) shall not apply to expense incurred by the body corporate, or incurred by a director or employee and reimbursed by the body corporate, in or in connection with the payment on behalf of a director or employee of the annual membership fees of a professional body where membership of that body by the director or employee is relevant to the business of the body corporate.<\/p>\n<p>(b)Membership of a professional body by a director or employee of a body corporate may be regarded as relevant to the business of that body corporate where &#8211;<\/p>\n<p>(i)it is necessary for the performance of the duties of the office or employment of the director or employee, or<\/p>\n<p>(ii)it facilitates the acquisition of knowledge which &#8211;<\/p>\n<p>(I)is necessary for or directly related to the performance of the duties of the office or employment of the director or employee, or<\/p>\n<p>(II)would be necessary for or directly related to the performance of prospective duties of the office or employment of the director or employee with that body corporate.<\/p>\n<p>(c)This subsection shall not apply as respects the year of assessment 2011 and each subsequent year of assessment.<\/p>\n<p>(5F)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision, without any transfer of the property in it, for a director or employee of a mechanically propelled road vehicle which is &#8211;<\/p>\n<p>(a)designed or constructed solely or mainly for the carriage of goods or other burden, and<\/p>\n<p>(b)of a type not commonly used as a private vehicle and unsuitable to be so used.<\/p>\n<p>(5G)<\/p>\n<p>(a)Subject to paragraph (c) of this subsection, subsection (1) shall not apply to expense of up to \u20ac1,250 incurred by the body corporate in, or in connection with, the provision for a director or employee of a bicycle or bicycle safety equipment, where &#8211;<\/p>\n<p>(i)the bicycle and bicycle safety equipment provided is unused and not second-hand,<\/p>\n<p>(ii)the director or employee uses the bicycle or bicycle safety equipment, or the bicycle and the bicycle safety equipment, as the case may be, mainly for qualifying journeys, and<\/p>\n<p>(iii)bicycles or bicycle safety equipment, or bicycles and bicycle safety equipment, as the case may be, are made available generally to directors and employees of the body corporate.<\/p>\n<p>(b)In this subsection &#8211;<\/p>\n<p>&#8216;bicycle&#8217; means a pedal cycle;<\/p>\n<p>&#8216;bicycle safety equipment&#8217; includes &#8211;<\/p>\n<p>(i)bicycle bells and bulb horns,<\/p>\n<p>(ii)bicycle helmets that conform to European product safety standard CEN\/EN 1078,<\/p>\n<p>(iii)bicycle lights, including dynamo packs,<\/p>\n<p>(iv)bicycle reflectors and reflective clothing, and<\/p>\n<p>(v)such other safety equipment as the Revenue Commissioners may allow;<\/p>\n<p>&#8216;cargo bicycle&#8217; means a bicycle with a special purpose frame which has been designed to carry large or heavy loads, or passengers other than the rider, by means of a bulk storage capacity container or platform integrated into, or affixed to, the frame of the bicycle, in front of or behind the rider;<\/p>\n<p>&#8216;normal place of work&#8217; means the place where the director or employee normally performs the duties of his or her office or employment;<\/p>\n<p>&#8216;pedal cycle&#8217; means &#8211;<\/p>\n<p>(i)a bicycle or tricycle which is intended or adapted for propulsion solely by the physical exertions of a person or persons seated thereon, or<\/p>\n<p>(ii)a pedelec,<\/p>\n<p>but does not include a moped or a scooter;<\/p>\n<p>&#8216;pedelec&#8217; means a bicycle or tricycle which is equipped with an auxiliary electric motor having a maximum continuous rated power of 0.25 kilowatts, of which output is progressively reduced and finally cut off as the vehicle reaches a speed of 25 kilometres per hour, or sooner if the cyclist stops pedalling;<\/p>\n<p>&#8216;qualifying journey&#8217;, in relation to a director or employee, means the whole or part of a journey &#8211;<\/p>\n<p>(i)between the director&#8217;s or employee&#8217;s home and normal place of work, or<\/p>\n<p>(ii)between the director&#8217;s or employee&#8217;s normal place of work and another place of work, where the director or employee is travelling in the performance of the duties of his or her office or employment.<\/p>\n<p>(c)A director or employee shall not, by virtue of this subsection, be relieved from a charge to income tax under subsection (1) more than once in any period of 4 consecutive years of assessment, commencing with the year of assessment in which the director or employee concerned is first provided with a bicycle or bicycle safety equipment.<\/p>\n<p>(d)Notwithstanding paragraph (a), where the expense or part thereof, as the case may be, is in connection with the provision of a pedelec, the amount referred to in paragraph (a) shall be \u20ac1,500.<\/p>\n<p>(e)Notwithstanding paragraphs (a) and (d), where the expense or part thereof, as the case may be, is in connection with the provision of a cargo bicycle, the amount referred to in paragraph (a) shall be \u20ac3,000.<\/p>\n<p>(5H)Subsection (1) shall not apply to expense incurred by the body corporate in, or in connection with, the provision, for a director or employee, in any of its business premises, of a facility for the electric charging of vehicles, where all the employees and directors of that body corporate can avail of the facility.<\/p>\n<p>(5I)<\/p>\n<p>(a)Subject to paragraph (b), subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee of a qualifying medical check-up, where &#8211;<\/p>\n<p>(i)qualifying medical check-ups are made available generally by the body corporate to all directors and employees of that body corporate, or<\/p>\n<p>(ii)the director or employee is required by the terms of his or her office or employment to undergo the qualifying medical check-up.<\/p>\n<p>(b)A director or employee shall not, by virtue of this subsection, be relieved from a charge to income tax under subsection (1) more than once in any year of assessment, unless subparagraph (ii) of paragraph (a) applies.<\/p>\n<p>(c)In this subsection &#8211;<\/p>\n<p>&#8216;medical practitioner&#8217; means a person who is registered in the register established under section 43 of the Medical Practitioners Act 2007;<\/p>\n<p>&#8216;qualifying medical check-up&#8217; means a medical examination carried out by a medical practitioner to test a person&#8217;s state of health.<\/p>\n<p>(5J)<\/p>\n<p>(a)Subsection (1) shall not apply to health expenses incurred by the body corporate in or in connection with the provision for a director or employee of health care, where health care is made available generally by the body corporate to all directors and employees of that body corporate.<\/p>\n<p>(b)In this subsection, &#8216;health care&#8217; and &#8216;health expenses&#8217; have the same meanings respectively as they have in section 469.<\/p>\n<p>(5K)<\/p>\n<p>(a)Subsection (1) shall not apply to expense incurred by the body corporate in or in connection with the provision for a director or employee of a Covid-19 test where &#8211;<\/p>\n<p>(i)the test is necessary for the performance of the duties of the office or employment of the director or employee, and<\/p>\n<p>(ii)Covid-19 tests are made available by the body corporate to all directors and employees of that body corporate where necessary for the performance of the duties of the office or employment of those directors and employees.<\/p>\n<p>(b)In this subsection &#8211;<\/p>\n<p>&#8216;Covid-19&#8217; means a disease caused by infection with the virus SARS-CoV-2 and specified as an infectious disease in accordance with Regulation 6 of, and the Schedule to, the Infectious Diseases Regulations 1981 (S.I. No. 390 of 1981) or any variant of the disease so specified as an infectious disease in those Regulations;<\/p>\n<p>&#8216;Covid-19 test&#8217; means a relevant test, administered in accordance with the instructions of the manufacturer of the test, the purpose of which is to detect the presence of Covid-19 in the person to whom the test is administered;<\/p>\n<p>&#8216;rapid antigen test&#8217; means a test that relies on detection of viral proteins (antigens) using a lateral flow immunoassay that gives results in less than 30 minutes;<\/p>\n<p>&#8216;relevant test&#8217; means &#8211;<\/p>\n<p>(a)an RT-PCR test,<\/p>\n<p>(b)a rapid antigen test of a kind &#8211;<\/p>\n<p>(i)included, for the time being, in the common list of Covid-19 rapid antigen tests agreed in accordance with the Council Recommendation of 21 January 2021 , and<\/p>\n<p>(ii)that complies with the requirements of Directive 98\/79\/EC of the European Parliament and of the Council of 27 October 1998 or, as appropriate, Regulation (EU) 2017\/746 of the European Parliament and of the Council of 5 April 2017 ,<\/p>\n<p>or<\/p>\n<p>(c)a rapid antigen test of a kind that complies with regulatory requirements under the laws of a state other than a Member State that are equivalent to the requirements referred to in paragraph (b)(ii);<\/p>\n<p>&#8216;RT-PCR test&#8217; means a reverse transcription polymerase chain reaction test.<\/p>\n<p>(5L)<\/p>\n<p>(a)Subsection (1) shall not apply to expense incurred by the body corporate, or incurred by a director or employee and reimbursed by the body corporate, in or in connection with the provision for a director or employee of an influenza vaccine, where influenza vaccines are made available generally by the body corporate to all directors and employees of that body corporate.<\/p>\n<p>(b)In this subsection, &#8216;influenza vaccine&#8217; means an influenza vaccine specified in column 1 of the Eighth Schedule to the Medicinal Products (Prescription and Control of Supply) Regulations 2003 (S.I. No. 540 of 2003) and administered in accordance with the requirements specified in columns 2 to 6 of that Schedule opposite the mention of the product concerned.<\/p>\n<p>(c)Relief shall not be given under section 469 in respect of the expense referred to in paragraph (a) incurred by a director or employee and reimbursed by the body corporate.<\/p>\n<p>(6)Any reference in this section to expense incurred in or in connection with any matter includes a reference to a proper proportion of any expense incurred partly in or in connection with that matter.<\/p>\n<p>(7)Where expense is incurred by a person connected with a body corporate, being expense which if incurred by the body corporate would be expense of the kind mentioned in subsection (1)(a), the body corporate shall be deemed for the purposes of this section to have incurred the expense, and subsection (1) shall apply accordingly in relation to any person, being a director or employee of the body corporate, in respect of whom the expense was incurred.<\/p>\n<p>(8)A person shall be regarded as connected with a body corporate for the purposes of subsection (7) if the person is &#8211;<\/p>\n<p>(a)a trustee of a settlement (within the meaning of section 794) made by the body corporate, or<\/p>\n<p>(b)a body corporate,<\/p>\n<p>and would be regarded as connected with the body corporate for the purposes of section 10.<\/p>\n<p>118A.<\/p>\n<h4>Costs and expenses in respect of personal security assets and services.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;asset&#8217; includes equipment or a structure, but not any mode of transport or a dwelling or grounds appurtenant to a dwelling;<\/p>\n<p>&#8216;service&#8217; does not include a dwelling or grounds appurtenant to a dwelling.<\/p>\n<p>(2)This section applies where there is a credible and serious threat to a director&#8217;s or an employee&#8217;s personal physical security, which arises wholly or mainly because of the director&#8217;s or employee&#8217;s office or employment.<\/p>\n<p>(3)This section applies to expense incurred by the body corporate, or incurred by a director or employee and reimbursed to the director or employee by the body corporate &#8211;<\/p>\n<p>(a)in &#8211;<\/p>\n<p>(i)the provision or use of, or<\/p>\n<p>(ii)expenses connected with,<\/p>\n<p>an asset or service for the improvement of personal security which is provided for or used by the director or employee to meet the threat to his or her personal physical security, and<\/p>\n<p>(b)with the sole object of meeting that threat.<\/p>\n<p>(4)Subject to subsections (6) and (7), where this section applies, section 118(1) shall not apply to an expense to which this section applies.<\/p>\n<p>(5)Where the body corporate intends the asset to be used solely to improve personal physical security, any use of the asset incidental to that purpose shall be ignored.<\/p>\n<p>(6)Where the body corporate intends the asset to be used only partly to improve personal physical security, subsection (4) shall apply only to that part of the expense incurred in relation to the asset which is attributable to the intended use for that purpose.<\/p>\n<p>(7)Subsection (4) shall only apply to an expense incurred in relation to a service referred to in subsection (3) where the benefit resulting to the director or employee consists wholly or mainly of an improvement of his or her personal physical security.<\/p>\n<p>(8)In determining whether or not this section applies in relation to an asset or service, the fact that &#8211;<\/p>\n<p>(a)the asset becomes fixed to land (whether the land constitutes a dwelling or otherwise), or<\/p>\n<p>(b)the director or employee is, or becomes, entitled &#8211;<\/p>\n<p>(i)to the property in the asset, or<\/p>\n<p>(ii)if the asset is a fixture, to any estate or interest in the land concerned,<\/p>\n<p>or<\/p>\n<p>(c)the asset or the service improves the personal physical security of a member of the director&#8217;s or employee&#8217;s family or household, as well as that of the director or employee,<\/p>\n<p>does not exclude the expense incurred by the body corporate from coming within subsection (4).<\/p>\n<p>118B.<\/p>\n<h4>Revenue approved salary sacrifice agreements.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;approved transport provider&#8217; has the same meaning as in section 118(5A);<\/p>\n<p>&#8216;exempt employee benefit&#8217; means a benefit specifically approved by the Revenue Commissioners which is referred to in subsection (2)(a)(i), (ii) and (iii);<\/p>\n<p>&#8216;salary sacrifice arrangement&#8217; means any arrangement under which an employee forgoes the right to receive any part of his or her remuneration due under his or her terms or contract of employment, and in return his or her employer agrees to provide him or her with a benefit;<\/p>\n<p>&#8216;approved profit sharing scheme&#8217; shall be construed in accordance with section 510.<\/p>\n<p>(2)<\/p>\n<p>(a)The amount of the remuneration forgone under any salary sacrifice arrangement specifically approved by the Revenue Commissioners in relation to &#8211;<\/p>\n<p>(i)travel passes issued by an approved transport provider under section 118(5A),<\/p>\n<p>(ii)shares appropriated to employees and directors under an approved profit sharing scheme within the meaning of Chapter 1 of Part 17, which are exempt from a charge to tax by virtue of section 510(4), and<\/p>\n<p>(iii)a bicycle or bicycle safety equipment provided to a director or employee and which is exempt from a charge to tax by virtue of section 118(5G),<\/p>\n<p>shall be exempt from tax.<\/p>\n<p>(b)Any amount of remuneration forgone by an individual under any salary sacrifice arrangement and not exempt from tax by virtue of paragraph (a) shall be deemed to be the payment of emoluments by an employer and income tax shall be chargeable accordingly.<\/p>\n<p>(3)Where an exempt employee benefit is provided to the spouse, civil partner or dependant of, or a person connected with, the individual, being an individual who has entered into a salary sacrifice arrangement, then any such benefit shall be deemed to be the payment of emoluments by an employer and income tax shall be chargeable accordingly.<\/p>\n<p>(4)Where &#8211;<\/p>\n<p>(a)but for this subsection, subsection (2)(a) would apply, and<\/p>\n<p>(b)there is an arrangement or scheme in place whereby the employee is recompensed, wholly or partly, by the provision of an exempt employee benefit together with a compensating payment,<\/p>\n<p>then the provisions of subsection (2)(a) shall not apply and the remuneration foregone shall be treated as the payment of emoluments by an employer and income tax shall be chargeable accordingly.<\/p>\n<p>(5)Where a salary sacrifice arrangement is entered into in respect of any right, bonus, commission or any other emolument which arises to an individual after the end of the year of assessment, then subsection (2)(a) shall not apply and the remuneration foregone shall be treated as the payment of emoluments by an employer for that year and income tax shall be chargeable accordingly.<\/p>\n<p>(6)This section has effect as on and from 31 January 2008.<\/p>\n<p>119.<\/p>\n<h4>Valuation of benefits in kind.<\/h4>\n<p>(1)Any expense incurred by a body corporate in the acquisition or production of an asset which remains its own property shall be disregarded for the purposes of section 118.<\/p>\n<p>(2)Where the making of any provision mentioned in section 118(1) takes the form of a transfer of the property in any asset of the body corporate and, since the acquisition or production of that asset by the body corporate, that asset has been used or has depreciated, the body corporate shall be deemed to have incurred in the making of that provision expense equal to the value of that asset at the time of the transfer.<\/p>\n<p>(3)Where an asset which continues to belong to the body corporate is used wholly or partly in the making of any provision mentioned in section 118(1), the body corporate shall be deemed for the purposes of that section to incur (in addition to any other expense incurred by it in connection with the asset, not being expense to which subsection (1) applies) annual expense in connection with the asset of an amount equal to the annual value of the use of the asset, but where any sum by means of rent or hire is payable by the body corporate in respect of the asset &#8211;<\/p>\n<p>(a)if the annual amount of the rent or hire is equal to or greater than the annual value of the use of the asset, this subsection shall not apply, and<\/p>\n<p>(b)if the annual amount of the rent or hire is less than the annual value of the use of the asset, the rent or hire shall be disregarded for the purposes of section 118(1).<\/p>\n<p>(4)For the purposes of subsection (3), the annual value of the use of an asset shall be taken to be &#8211;<\/p>\n<p>(a)in the case of an asset being premises, the rent which might reasonably be expected to be obtained on a letting from year to year if the tenant undertook to pay all usual tenant&#8217;s rates, and if the landlord undertook to bear the costs of repairs and insurance, and the other expenses, if any, necessary for maintaining the premises in a state to command that rent, and<\/p>\n<p>(b)in the case of any other asset, 5 per cent of the market value (within the meaning of section 548) of the asset at the time when it was first applied by the body corporate in making any provision mentioned in section 118(1).<\/p>\n<p>120.<\/p>\n<h4>Unincorporated bodies, partnerships and individuals.<\/h4>\n<p>(1)This Chapter shall apply in relation to unincorporated societies, public bodies and other bodies as it applies in relation to bodies corporate and, in connection with this Chapter, the definition of &#8220;control&#8221; in section 116(1) shall, with the necessary modifications, also so apply.<\/p>\n<p>(2)This Chapter shall apply in relation to any partnership carrying on any trade or profession as it would apply in relation to a body corporate carrying on a trade if so much of this Chapter as relates to directors of the body corporate or persons taking part in the management of the affairs of the body corporate were deleted; but &#8211;<\/p>\n<p>(a)&#8221;control&#8221;, in relation to a partnership, means the right to a share of more than 50 per cent of the assets, or of more than 50 per cent of the income, of the partnership, and<\/p>\n<p>(b)where a partnership carrying on any trade or profession has control over a body corporate to which this Chapter applies (&#8220;control&#8221; being construed for this purpose in accordance with the definition of that term in section 116(1)) &#8211;<\/p>\n<p>(i)any employment of any director of that body corporate by the partnership shall be an employment to which this Chapter applies, and<\/p>\n<p>(ii)all the employments of any person who is employed both by the partnership and by the body corporate (being employments by the partnership or the body corporate) shall, for the purpose of ascertaining whether those employments or any of them are employments to which this Chapter applies, be treated as if they were employments by the body corporate.<\/p>\n<p>(3)Subsection (2) shall apply in relation to individuals as it applies in relation to partnerships, but nothing in this subsection shall be construed as requiring an individual to be treated in any circumstances as under the control of another person.<\/p>\n<p>(4)<\/p>\n<p>(a)This subsection applies where an expense, which if it had been incurred by a body corporate would be an expense of the kind mentioned in subsection 118(1)(a), is incurred by a public body in relation to a person who holds an office or exercises an employment in that or in another public body.<\/p>\n<p>(b)Where this subsection applies the expense shall be treated for the purposes of this Chapter as if it had been incurred by the public body in which the office is held or the employment is exercised and as if that public body was a body corporate.<\/p>\n<p>(5)For the purposes of this section &#8216;public body&#8217; means &#8211;<\/p>\n<p>(a)the Civil Service of the Government and the Civil Service of the State,<\/p>\n<p>(b)the Garda S\u00edoch\u00e1na, or<\/p>\n<p>(c)the Permanent Defence Force.<\/p>\n<p>120A.<\/p>\n<h4>Exemption from benefit-in-kind of certain childcare facilities.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;childcare service&#8221; means any form of child minding service or supervised activity to care for children, whether or not provided on a regular basis;<\/p>\n<p>&#8220;qualifying premises&#8221; means premises which &#8211;<\/p>\n<p>(a)are made available solely by the employer,<\/p>\n<p>(b)are made available by the employer jointly with other persons and the employer is wholly or partly responsible for financing and managing the provision of the childcare service,<\/p>\n<p>(c)are made available by any other person or persons and the employer is wholly or partly responsible for financing and managing the provision of the childcare service, or<\/p>\n<p>(d)are made available by the employer jointly with other persons or are made available by any other person or persons and the employer is wholly or partly responsible for capital expenditure on the construction or refurbishment of the premises,<\/p>\n<p>and in respect of which it can be shown that the requirements of Article 9, 10 or 11, as appropriate, of the Child Care (Pre-School Services) Regulations, 1996 (S.I. No. 398 of 1996), have been complied with.<\/p>\n<p>(2)Subsection (1) of section 118 shall not apply to any expense incurred by a body corporate in or in connection with the provision of a childcare service in qualifying premises for a child of a director or employee.<\/p>\n<p>(3)In the case of a qualifying premises within the meaning of paragraph (d) of the definition of &#8216;qualifying premises&#8217;, the exemption provided for in subsection (2) shall be limited to the amount expended by the employer on capital expenditure on the construction or refurbishment of the premises.<\/p>\n<p>(4)This section shall not apply as respects the year of assessment 2011 and each subsequent year of assessment.<\/p>\n<p>120B.<\/p>\n<h4>Certain benefits in kind: members of Permanent Defence Force.<\/h4>\n<p>(1) Notwithstanding section 118, section 112 shall not apply in relation to any expense incurred by or on behalf of the Minister for Defence &#8211;<\/p>\n<p>(a)in or in connection with the provision of living accommodation to a member of the Permanent Defence Force on land occupied by, used by, or under the control (whether temporarily or otherwise) of the Permanent Defence Force, or<\/p>\n<p>(b)in or in connection with the provision of health care to a member of the Permanent Defence Force.<\/p>\n<p>(2)In this section &#8211;<\/p>\n<p>\u2018health care\u2019 means prevention, diagnosis, alleviation or treatment of an ailment, injury, infirmity, defect or disability, and includes care received by a woman in respect of a pregnancy, but does not include &#8211;<\/p>\n<p>(a)routine ophthalmic treatment, or<\/p>\n<p>(b)cosmetic surgery or similar procedures, unless the surgery or procedure is necessary to ameliorate a physical deformity arising from, or directly related to, a congenital abnormality, a personal injury or a disfiguring disease;<\/p>\n<p>\u2018routine ophthalmic treatment\u2019 means the provision and repairing of spectacles or contact lenses.<\/p>\n<p>Chapter 4<\/p>\n<h4>Other benefit in kind charges (ss. 121-122A)<\/h4>\n<p>121.<\/p>\n<h4>Benefit of use of car.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section &#8211;<\/p>\n<p>&#8220;business mileage for a year of assessment&#8221;, in relation to a person, means the total number of whole kilometres travelled in the year in the course of business use by that person of a car or cars in respect of which this section applies in relation to that person;<\/p>\n<p>&#8220;business use&#8221;, in relation to a car in respect of which this section applies in relation to a person, means travelling in the car which that person is necessarily obliged to do in the performance of the duties of his or her employment;<\/p>\n<p>&#8220;car&#8221; means any mechanically propelled road vehicle designed, constructed or adapted for the carriage of the driver or the driver and one or more other persons other than &#8211;<br \/>\n(a)a motor-cycle<br \/>\n(b)a van (within the meaning of section 121A), or<br \/>\n(c)a vehicle of a type not commonly used as a private vehicle and unsuitable to be so used;<\/p>\n<p>&#8220;electric vehicle&#8221; means a vehicle that derives its motive power exclusively from an electric motor;<\/p>\n<p>&#8220;employment&#8221; means an office or employment of profit such that any emoluments (within the meaning of section 113) of the office or employment would be charged to tax, and cognate expressions shall be construed accordingly;<\/p>\n<p>&#8220;motor-cycle&#8221; means a mechanically propelled vehicle with less than four wheels and the weight of which unladen does not exceed 410 kilograms;<\/p>\n<p>&#8220;private use&#8221;, in relation to a car, means use of the car other than business use;<\/p>\n<p>&#8220;relevant log book&#8221;, in relation to a person and a year of assessment, means a record maintained on a daily basis of the person&#8217;s business use for the year of assessment of a car or cars in respect of which this section applies in relation to that person for that year of assessment which &#8211;<br \/>\n(i)contains relevant details of distances travelled, nature and location of business transacted and amount of time spent away from the employer&#8217;s place of business, and<br \/>\n(ii)is certified by the employer as being to the best of the employer&#8217;s knowledge and belief true and accurate.<\/p>\n<p>(b)For the purposes of this section &#8211;<\/p>\n<p>(i)<\/p>\n<p>(I)a car made available in any year to an employee by reason of his or her employment shall be deemed to be available in that year for his or her private use unless the terms on which the car is so made available prohibit such use and no such use is made of the car in that year:<\/p>\n<p>(II)a car made available to an employee by his or her employer or by a person connected with the employer shall be deemed to be made available to him or her by reason of his or her employment (unless the employer is an individual and it can be shown that the car was made so available in the normal course of his or her domestic, family or personal relationships);<\/p>\n<p>(III)a car shall be treated as available to a person and for his or her private use if it is available to &#8211;<\/p>\n<p>(A)a member or members of his or her family or household,<\/p>\n<p>(B)his or her civil partner,<\/p>\n<p>(C)a member or members of the family or household of his or her civil partner,<\/p>\n<p>(D)any spouse or civil partner of a child of the person, or<\/p>\n<p>(E)any spouse or civil partner of a child of the civil partner of the person;<\/p>\n<p>(IV)references to a person&#8217;s family or household are references to the person&#8217;s spouse, sons and daughters and their spouses, parents and servants, dependants and guests;<\/p>\n<p>(ii)in relation to a car in respect of which this section applies, expenditure in respect of any costs borne by a person connected with the employer shall be treated as borne by the employer;<\/p>\n<p>(iii)the original market value of a car shall be the price (including any duty of customs, duty of excise or value-added tax chargeable on the car) which the car might reasonably have been expected to fetch if sold in the State singly in a retail sale in the open market immediately before the date of its first registration in the State under section 6 of the Roads Act, 1920, or under corresponding earlier legislation, or else-where under the corresponding legislation of any country or territory.<\/p>\n<p>(2)<\/p>\n<p>(a)In relation to a person chargeable to tax in respect of an employment, this section shall apply for a year of assessment in relation to a car which, by reason of the employment, is made available (without a transfer of the property in it) to the person and is available for his or her private use in that year.<\/p>\n<p>(b)In relation to a car in respect of which this section applies for a year of assessment &#8211;<\/p>\n<p>(i)Chapter 3 of this Part shall not apply for that year in relation to the expense incurred in connection with the provision of the car,<\/p>\n<p>(ii)there shall be treated for that year as emoluments of the employment by reason of which the car is made available, and accordingly chargeable to income tax, the amount, if any, by which the cash equivalent of the benefit of the car for the year exceeds the aggregate for the year of the amount which the employee is required to make good and actually makes good to the employer in respect of any part of the costs of providing or running the car,<\/p>\n<p>(iii)notwithstanding subparagraph (ii), no amount shall be treated as emoluments of the employment where the car provided is &#8211;<\/p>\n<p>(I)an electric vehicle, and<\/p>\n<p>(II)provided during the period 1 January 2018 to 31 December 2018,<\/p>\n<p>(iv)notwithstanding subparagraph (ii), where a car made available during the period 1 January 2019 to 31 December 2022 is an electric vehicle and the original market value of the car does not exceed \u20ac50,000, no amount shall be treated as emoluments of the employment,<\/p>\n<p>(v)notwithstanding subparagraph (ii), where &#8211;<\/p>\n<p>(I)a car made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle,<\/p>\n<p>(II)the original market value of the car exceeds \u20ac50,000, and<\/p>\n<p>(III)the car was first made available to the employee during the period 10 October 2017 to 9 October 2018,<\/p>\n<p>no amount shall be treated as emoluments of the employment, and<\/p>\n<p>(vi)where a car made available during the period 1 January 2019 to 31 December 2022 is an electric vehicle and the original market value of the car exceeds \u20ac50,000, the cash equivalent of the benefit of the car ascertained under subsection (3)(a) or (4)(a), as the case may be, shall be computed on the original market value of the car reduced by \u20ac50,000.<\/p>\n<p>(3)<\/p>\n<p>(a)The cash equivalent of the benefit of a car for a year of assessment shall be 30 per cent of the original market value of the car.<\/p>\n<p>(b)Where a car in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the car for that year (ascertained under paragraph (a)) the same proportion as that part of the year bears to that year.<\/p>\n<p>(c)This subsection is subject to subsection (4A) for the year of assessment 2023 and subsequent years.<\/p>\n<p>(4)<\/p>\n<p>(a)Where in relation to a person the business mileage for a year of assessment exceeds 24,000 kilometres the cash equivalent of the benefit of the car for that year, instead of being the amount ascertained under subsection (3) shall be the percentage of the original market value of the car applicable to the business mileage under the Table to this subsection.<\/p>\n<p>(b)In the Table to this subsection, any percentage shown in column (3) shall be that applicable to any business mileage for a year of assessment which &#8211;<\/p>\n<p>(i)exceeds the lower limit shown in column (1), and<\/p>\n<p>(ii)does not exceed the upper limit (if any) shown in column (2),<\/p>\n<p>opposite the mention of that percentage in column (3).<\/p>\n<p>Table<\/p>\n<p>&nbsp;<\/p>\n<p>Business Mileage<\/p>\n<p>Percentage of original market value<\/p>\n<p>lower limit<\/p>\n<p>upper limit<\/p>\n<p>&nbsp;<\/p>\n<p>(1)<\/p>\n<p>(2)<\/p>\n<p>(3)<\/p>\n<p>kilometres<\/p>\n<p>kilometres<\/p>\n<p>per cent<\/p>\n<p>24,000<\/p>\n<p>32,000<\/p>\n<p>24<\/p>\n<p>32,000<\/p>\n<p>40,000<\/p>\n<p>18<\/p>\n<p>40,000<\/p>\n<p>48,000<\/p>\n<p>12<\/p>\n<p>48,000<\/p>\n<p>\u2014<\/p>\n<p>6<\/p>\n<p>(c)Where a car in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount determined by applying paragraph (a) as if &#8211;<\/p>\n<p>(i)the figure 24,000 referred to in that paragraph were replaced by a figure (in this paragraph referred to as the &#8216;new figure&#8217;) determined by the formula &#8211;<\/p>\n<p>24,000 \u00d7 A.<br \/>\n365<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the number of days in the part of the year, and<\/p>\n<p>(ii)each figure in columns (1), (2) and (3) of the Table to this subsection were reduced in the same proportion as the new figure bears to 24,000.<\/p>\n<p>(d)This subsection is subject to subsection (4A) for the year of assessment 2023 and subsequent years.<\/p>\n<p>(4A)<\/p>\n<p>(a)For the year of assessment 2023 and subsequent years, the cash equivalent of the benefit of a car shall be an amount determined by the formula &#8211;<\/p>\n<p>Original market value x A<\/p>\n<p>where &#8211;<\/p>\n<p>A is a percentage, based on vehicle categories as set out in Table B to this subsection, determined in accordance with column (3), (4), (5), (6) or (7), as the case may be, of Table A to this subsection.<\/p>\n<p>(aa)Notwithstanding paragraph (a), where a car in respect of which this subsection applies is an electric vehicle, the cash equivalent of the benefit of the car ascertained under paragraph (a) shall be computed on the original market value of the car reduced by:<\/p>\n<p>(i)subject to paragraph (ab), \u20ac35,000 in respect of a car made available in the period 1 January 2023 to 31 December 2023;<\/p>\n<p>(ii)subject to paragraph (ab), \u20ac35,000 in respect of a car made available in the period 1 January 2024 to 31 December 2024;<\/p>\n<p>(iii)\u20ac35,000 in respect of a car made available in the period 1 January 2025 to 31 December 2025;<\/p>\n<p>(iv)\u20ac20,000 in respect of a car made available in the period 1 January 2026 to 31 December 2026;<\/p>\n<p>(v)\u20ac10,000 in respect of a car made available in the period 1 January 2027 to 31 December 2027.<\/p>\n<p>(ab)Notwithstanding paragraph (a), the cash equivalent of the benefit of a car ascertained under paragraph (a), for the years of assessment 2023 and 2024, shall &#8211;<\/p>\n<p>(i)where subparagraph (i) or (ii), as the case may be, of paragraph (aa) applies, be computed on the original market value of the car reduced by &#8211;<\/p>\n<p>(I)the amount specified in subparagraph (i) or (ii), as the case may be, of paragraph (aa), and<\/p>\n<p>(II)\u20ac10,000,<\/p>\n<p>and<\/p>\n<p>(ii)where subparagraph (ab)(i) does not apply, for the vehicle categories A, B, C and D set out in column (1) of Table B to this 25 subsection, be computed on the original market value of the car reduced by \u20ac10,000.<\/p>\n<p>(b)In Table A to this subsection, any percentage shown in column (3), (4), (5), (6) or (7), as the case may be, shall be the percentage applicable to any business mileage for a year of assessment which &#8211;<\/p>\n<p>(i)exceeds the lower limit (if any) shown in column (1), and<\/p>\n<p>(ii)does not exceed the upper limit (if any) shown in column (2),<\/p>\n<p>opposite the mention of that percentage in column (3), (4), (5), (6) or (7), as the case may be.<\/p>\n<p>(ba)For the years of assessment 2023 and 2024, Table A to this subsection shall apply as if &#8211;<\/p>\n<p>(i)the lower limit of &#8220;52,001&#8221; shown in column (1) were replaced by &#8220;48,001&#8221;, and<\/p>\n<p>(ii)the upper limit of &#8220;52,000&#8221; shown in column (2) were replaced by &#8220;48,000&#8221;.<\/p>\n<p>(c)Where a car in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that car as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the car for that year (ascertained under paragraph (a)) the same proportion as that part of the year bears to that year.<\/p>\n<p>(d)For the purposes of this section, the vehicle categories set out in column (1) of Table B to this subsection refer to a car whose CO2 emissions, determined by virtue of section 130 of Finance Act 1992, are set out in the corresponding entry in column (2) of Table B to this subsection.<\/p>\n<p>TABLE A<\/p>\n<p>Business mileage<\/p>\n<p>Vehicle Categories<\/p>\n<p>lower limit (1)<\/p>\n<p>upper limit (2)<\/p>\n<p>A (3)<\/p>\n<p>B (4)<\/p>\n<p>C (5)<\/p>\n<p>D (6)<\/p>\n<p>E (7)<\/p>\n<p>kilometres<\/p>\n<p>kilometres<\/p>\n<p>per cent<\/p>\n<p>per cent<\/p>\n<p>per cent<\/p>\n<p>per cent<\/p>\n<p>per cent<\/p>\n<p>&#8212;<\/p>\n<p>26,000<\/p>\n<p>22.5<\/p>\n<p>26.25<\/p>\n<p>30<\/p>\n<p>33.75<\/p>\n<p>37.5<\/p>\n<p>26,001<\/p>\n<p>39,000<\/p>\n<p>18<\/p>\n<p>21<\/p>\n<p>24<\/p>\n<p>27<\/p>\n<p>30<\/p>\n<p>39,001<\/p>\n<p>52,000<\/p>\n<p>13.5<\/p>\n<p>15.75<\/p>\n<p>18<\/p>\n<p>20.25<\/p>\n<p>22.5<\/p>\n<p>52,001<\/p>\n<p>&#8212;<\/p>\n<p>9<\/p>\n<p>10.5<\/p>\n<p>12<\/p>\n<p>13.5<\/p>\n<p>15<\/p>\n<p>TABLE B<\/p>\n<p>Vehicle Category<\/p>\n<p>(1)<\/p>\n<p>CO2 Emissions (CO2 g\/km)<\/p>\n<p>(2)<\/p>\n<p>A<\/p>\n<p>0g\/km up to and including 59g\/km<\/p>\n<p>B<\/p>\n<p>More than 59g\/km up to and including 99g\/km<\/p>\n<p>C<\/p>\n<p>More than 99g\/km up to and including 139g\/km<\/p>\n<p>D<\/p>\n<p>More than 139g\/km up to and including 179g\/km<\/p>\n<p>E<\/p>\n<p>More than 179g\/km<\/p>\n<p>(5)<\/p>\n<p>(a)Where for a year of assessment &#8211;<\/p>\n<p>(i)a person, in the performance of the duties of his or her employment, spends 70 per cent or more of his or her time engaged on such duties away from the place of business of his or her employer, and<\/p>\n<p>(ii)in relation to that person, the business mileage exceeds 8,000 kilometres,<\/p>\n<p>then, if the person so elects in writing to the inspector, the cash equivalent of the benefit of the car for that year of assessment in relation to the person shall, instead of being the amount ascertained under subsection (3) or (4), as may otherwise be appropriate, be 80 per cent of the amount ascertained under subsection (3).<\/p>\n<p>(aa)[deleted]<\/p>\n<p>(b)When requested in writing by the inspector, a person who makes an election under paragraph (a) for a year of assessment shall within 30 days of the date of such request furnish to the inspector a relevant log book in relation to that year of assessment.<\/p>\n<p>(c)This subsection shall not apply as respects a year of assessment where &#8211;<\/p>\n<p>(i)when requested to do so, a person fails to deliver to the inspector within the time specified in paragraph (b) a relevant log book in relation to that year of assessment, or<\/p>\n<p>(ii)the time spent by a person in the performance of the duties of his or her employment in that year of assessment is on average less than 20 hours per week.<\/p>\n<p>(d)Subsection (7)(e) shall apply for the purposes of this subsection as it applies for the purposes of subsection (7).<\/p>\n<p>(e)Where a person makes an election under paragraph (a) for a year of assessment, such person shall retain the relevant log book in relation to that year of assessment for a period of 6 years after that end of that year or for such shorter period as the inspector may authorise in writing.<\/p>\n<p>(6)<\/p>\n<p>(a)Where any amount is to be treated as emoluments of an employment under subsection (2)(b)(ii) for a year of assessment, it shall be the duty of the person who is chargeable to tax in respect of that amount to deliver in writing to the inspector, not later than 30 days after the end of that year of assessment, particulars of the car, of its original market value and of the business mileage and private mileage for that year of assessment.<\/p>\n<p>(b)Where in relation to a year of assessment &#8211;<\/p>\n<p>(i)a person makes default in the delivery of particulars in relation to &#8211;<\/p>\n<p>(I)the original market value of a car in respect of which this section applies in relation to him or her,<\/p>\n<p>(II)his or her business mileage for the year, or<\/p>\n<p>(III)his or her private mileage for the year,<\/p>\n<p>or<\/p>\n<p>(ii)the inspector is not satisfied with the particulars which have been delivered by the person,<\/p>\n<p>then, the original market value or business mileage or private mileage which is to be taken into account for the purpose of computing the amount of the tax to which that person is to be charged shall be such value or mileage, as the case may be, as according to the best of the inspector&#8217;s judgment ought to be so taken into account and, in the absence of sufficient evidence to the contrary, the business mileage for a year of assessment in relation to a person shall be determined by deducting 8,000 from the total number of kilometres travelled in that year by that person in a car or cars in respect of which this section applies in relation to that person.<\/p>\n<p>(bb)[deleted]<\/p>\n<p>(c)[deleted]<\/p>\n<p>(d)A value or mileage taken into account under paragraph (b) may be amended by the Appeal Commissioners in determining an appeal against an assessment in respect of the employment in the performance of the duties of which the business mileage is done.<\/p>\n<p>(7)<\/p>\n<p>(a)This subsection shall apply to any car in the case of which the inspector is satisfied (whether on a claim under this subsection or otherwise) that it has for any year been included in a car pool for the use of the employees of one or more employers.<\/p>\n<p>(b)A car shall be treated as having been so included for a year if &#8211;<\/p>\n<p>(i)in that year the car was made available to and actually used by more than one of those employees and in the case of each of them was made available to him or her by reason of his or her employment but was not in that year ordinarily used by any one of them to the exclusion of the others,<\/p>\n<p>(ii)in the case of each of them, any private use of the car made by him or her in that year was merely incidental to his or her other use of the car in the year, and<\/p>\n<p>(iii)the car was in that year not normally kept overnight on or in the vicinity of any residential premises where any of the employees was residing, except while being kept overnight on premises occupied by the person making the car available to them.<\/p>\n<p>(c)Where this subsection applies to a car, the car shall be treated under this section as not having been available for the private use of any of the employees for the year in question.<\/p>\n<p>(d)A claim under this subsection in respect of a car for any year may be made by any one of the employees mentioned in paragraph (b)(i) (they being referred to in paragraph (e) as &#8220;the employees concerned&#8221;) or by the employer on behalf of all of them.<\/p>\n<p>(e)<\/p>\n<p>(i)An employer aggrieved by a decision of the inspector that a car has not been included in a car pool for the use of the employees of one or more employers may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 2 months after the date of the notice of that decision.<\/p>\n<p>(ii)[deleted]<\/p>\n<p>(iii)On an appeal against the decision of the inspector on a claim under this section all the employees concerned may take part in the proceedings, and the determination of the Appeal Commissioners shall be binding on all those employees, whether or not they have taken part in the proceedings.<\/p>\n<p>(iv)Where an appeal against the decision of the inspector on a claim under this subsection has been determined, no appeal against the inspector&#8217;s decision on any other such claim in respect of the same car while in the same car pool and the same year shall be entertained.<\/p>\n<p>121A.<\/p>\n<h4>Benefit of use of van.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;electric vehicle&#8217; has the meaning assigned to it by section 121;<\/p>\n<p>&#8216;gross vehicle weight&#8217;, in relation to a vehicle, means the weight which the vehicle is designed or adapted not to exceed when in normal use and travelling on the road laden.<\/p>\n<p>&#8216;van&#8217; means a mechanically propelled road vehicle which &#8211;<\/p>\n<p>(a)is designed or constructed solely or mainly for the carriage of goods or other burden,<\/p>\n<p>(b)has a roofed area or areas to the rear of the driver&#8217;s seat,<\/p>\n<p>(c)has no side windows or seating fitted in that roofed area or areas, and<\/p>\n<p>(d)has a gross vehicle weight not exceeding 3,500 kilograms.<\/p>\n<p>(2)<\/p>\n<p>(a)In relation to a person chargeable to tax in respect of an employment, this section shall apply for a year of assessment in relation to a van which, by reason of the employment, is made available (without a transfer of the property in it) to the person and is available for his or her private use in that year.<\/p>\n<p>(b)In relation to a van in respect of which this section applies for a year of assessment &#8211;<\/p>\n<p>(i)Chapter 3 of this Part shall not apply for that year in relation to the expense incurred in connection with the provision of the van,<\/p>\n<p>(ii)there shall be treated for that year as emoluments of the employment by reason of which the van is made available, and accordingly chargeable to income tax, the amount, if any, by which the cash equivalent of the benefit of the van for the year exceeds the aggregate for the year of the amounts which the employee is required to make good and actually makes good to the employer in respect of any part of the costs of providing or running the van,<\/p>\n<p>(iii)notwithstanding subparagraph (ii), no amount shall be treated as emoluments of the employment where the van provided is &#8211;<\/p>\n<p>(I)an electric vehicle, and<\/p>\n<p>(II)provided during the period 1 January 2018 to 31 December 2018,<\/p>\n<p>(iv)notwithstanding subparagraph (ii), where a van made available during the period 1 January 2019 to 31 December 2022 is an electric vehicle and the original market value of the van does not exceed \u20ac50,000, no amount shall be treated as emoluments of the employment,<\/p>\n<p>(v)notwithstanding subparagraph (ii), where &#8211;<\/p>\n<p>(I)a van made available to an employee during the period 1 January 2019 to 31 December 2020 is an electric vehicle,<\/p>\n<p>(II)the original market value of the van exceeds \u20ac50,000, and<\/p>\n<p>(III)the van was first made available to the employee during the period 10 October 2017 to 9 October 2018, no amount shall be treated as emoluments of the employment,<\/p>\n<p>(vi)where a van made available during the period 1 January 2019 to 31 December 2022 is an electric vehicle and the original market value of the van exceeds \u20ac50,000, the cash equivalent of the benefit of the van ascertained under subsection (3) shall be computed on the original market value of the van reduced by \u20ac50,000,<\/p>\n<p>(vii)where a van is an electric vehicle, the cash equivalent of the benefit of the van ascertained under subsection (3) shall be computed on the original market value of the van reduced by:<\/p>\n<p>(I)subject to subparagraph (viii), \u20ac35,000 in respect of a van made available in the period 1 January 2023 to 31 December 2023;<\/p>\n<p>(II)subject to subparagraph (viii), \u20ac35,000 in respect of a van made available in the period 1 January 2024 to 31 December 2024;<\/p>\n<p>(III)\u20ac35,000 in respect of a van made available in the period 1 January 2025 to 31 December 2025;<\/p>\n<p>(IV)\u20ac20,000 in respect of a van made available in the period 1 January 2026 to 31 December 2026;<\/p>\n<p>(V)\u20ac10,000 in respect of a van made available in the period 1 January 2027 to 31 December 2027, and<\/p>\n<p>(viii)the cash equivalent of the benefit of a van ascertained under subsection (3), for the years of assessment 2023 and 2024, shall &#8211;<\/p>\n<p>(I)where clause (I) or (II), as the case may be, of subparagraph (vii) applies, be computed on the original market value of the van reduced by &#8211;<\/p>\n<p>(A)the amount specified in clause (I) or (II), as the case may be, of subparagraph (vii), and<\/p>\n<p>(B)\u20ac10,000,<\/p>\n<p>and<\/p>\n<p>(II)in any other case, be computed on the original market value of the van reduced by \u20ac10,000.&#8221;.<\/p>\n<p>(2A)Subsection (2) shall not apply for a year of assessment in respect of the private use of a van made available to a person (in this subsection referred to as the &#8217;employee&#8217;) as set out in that subsection where the following conditions are met &#8211;<\/p>\n<p>(a)the van made available to the employee is necessary for the performance of the duties of the employee&#8217;s employment,<\/p>\n<p>(b)the employee is required by the person who made the van available to keep it, when not in use in the performance of the duties of the employee&#8217;s employment, at or in the vicinity of the employee&#8217;s private residence,<\/p>\n<p>(c)apart from travel between the employee&#8217;s private residence and workplace, other private use of the van is prohibited by the person making the van available and there is no such other private use, and<\/p>\n<p>(d)in the performance of the duties of his or her employment, the employee spends at least 80 per cent of his or her time engaged on such duties away from the premises of the employer to which the employee is attached.<\/p>\n<p>(3)The cash equivalent of the benefit of a van &#8211;<\/p>\n<p>(a)for a year of assessment, other than a year of assessment referred to in paragraph (b), shall be 5 per cent of the original market value of the van, and<\/p>\n<p>(b)for the year of assessment 2023 and subsequent years of assessment, shall be 8 per cent of the original market value of the van.<\/p>\n<p>(4)The provisions of subsections (1) (other than the definition of car in paragraph (a)), (6) and (7) of section 121 shall apply, with any necessary modifications in relation to a van, for the purposes of this section as they apply in relation to a car for the purposes of that section.<\/p>\n<p>(5)Where a van in respect of which this section applies in relation to a person for a year of assessment is made available to the person for part only of that year, the cash equivalent of the benefit of that van as respects that person for that year shall be an amount which bears to the full amount of the cash equivalent of the van for that year (ascertained under subsection (3)) the same proportion as that part of the year bears to that year.<\/p>\n<p>122.<\/p>\n<h4>Preferential loan arrangements.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section &#8211;<\/p>\n<p>&#8220;employee&#8221;, in relation to an employer, means an individual employed by the employer in an employment &#8211;<br \/>\n(a)to which Chapter 3 of this Part applies, or<br \/>\n(b)the profits or gains of which are chargeable to tax under Case III of Schedule D<br \/>\nincluding, in a case where the employer is a body corporate, a director (within the meaning of that Chapter) of the body corporate;<\/p>\n<p>&#8220;employer&#8221;, in relation to an individual, means &#8211;<br \/>\n(i)a person of whom the individual or the spouse or civil partner of the individual is or was an employee<br \/>\n(ii)a person of whom the individual becomes an employee subsequent to the making of a loan by the person to the individual, and while any part of the loan, or of another loan replacing it, is outstanding, or<br \/>\n(iii)a person connected with a person referred to in paragraph (i) or (ii);<\/p>\n<p>&#8220;loan&#8221; includes any form of credit, and references to a loan include references to any other loan applied directly or indirectly towards the replacement of another loan;<\/p>\n<p>&#8220;preferential loan&#8221; means, in relation to an individual, a loan, in respect of which no interest is paid or interest is paid at a preferential rate, made directly or indirectly to the individual or to the spouse or civil partner of the individual by a person who in relation to the individual or the spouse or civil partner is an employer, but does not include any such loan in respect of which interest is paid at a rate that is not less than the rate of interest at which the employer in the course of the employer&#8217;s trade makes equivalent loans for similar purposes at arm&#8217;s length to persons other than employees or their spouses or civil partners;<\/p>\n<p>&#8220;preferential rate&#8221; means a rate less than the specified rate;<\/p>\n<p>&#8220;qualifying loan&#8221; has the meaning assigned to it by section 244(1)(a);<\/p>\n<p>&#8220;the specified rate&#8221;, in relation to a preferential loan, means &#8211;<br \/>\n(i)in a case where the preferential loan is a qualifying loan, the rate of 4 per cent per annum or such other rate (if any) prescribed by the Minister for Finance by regulations,<br \/>\n(ii)in a case where &#8211;<br \/>\n(I)the preferential loan is made to an employee by an employer,<br \/>\n(II)the making of loans for the purposes of purchasing a dwelling house for occupation by the borrower as a residence, for a stated term of years at a rate of interest which does not vary for the duration of the loan, forms part of the trade of the employer, and<br \/>\n(III)the rate of interest at which, in the course of the employer&#8217;s trade at the time the preferential loan is or was made, the employer makes or made loans at arm&#8217;s length to persons, other than employees, for the purposes of purchasing a dwelling house for occupation by the borrower as a residence is less than 4 per cent per annum or such other rate (if any) prescribed by the Minister for Finance by regulations,<br \/>\nthe first-mentioned rate in subparagraph (III), or<br \/>\n(iii)in any other case, the rate of 13.5 per cent per annum or such other rate (if any) prescribed by the Minister for Finance by regulations.<\/p>\n<p>(b)For the purposes of this section, a person shall be regarded as connected with another person if such person would be so regarded for the purposes of section 250.<\/p>\n<p>(c)In this section, a reference to a loan being made by a person includes a reference to a person assuming the rights and liabilities of the person who originally made the loan and to a person arranging, guaranteeing or in any way facilitating a loan or the continuation of a loan already in existence.<\/p>\n<p>(2)Where, for the whole or part of a year of assessment, there is outstanding, in relation to an individual, a preferential loan, the individual shall, subject to subsection (4), be treated for the purpose of section 112 or a charge to tax under Case III of Schedule D, as having received in that year of assessment, as a perquisite of the office or employment with the employer who made the loan, a sum equal to the difference between the aggregate amount of interest paid in that year and the amount of interest which would have been payable in that year, if interest had been payable on the loan at the specified rate and the individual or, in the case of an individual &#8211;<\/p>\n<p>(a)who is a wife or husband whose spouse is chargeable to tax for the year of assessment in accordance with the provisions of Chapter 1 of Part 44, the spouse of the individual, or<\/p>\n<p>(b)who is a civil partner whose civil partner is chargeable to tax for the year of assessment in accordance with the provisions of section 1031C, the civil partner of the individual,<\/p>\n<p>shall be charged to tax accordingly.<\/p>\n<p>(3)Where an individual has a loan made to him or her directly or indirectly in any year of assessment by a person who at the time the loan is made is, or who at a time subsequent to the making of the loan becomes, an employer in relation to the individual and the loan or any interest payable on the loan is released or written off in whole or in part &#8211;<\/p>\n<p>(a)the individual shall be deemed for the purposes of section 112 or, in a case where profits or gains from an employment with that person would be chargeable to tax under Case Ill of Schedule D, for the purposes of a charge to tax under that Case to have received in the year of assessment in which the release or writing off took place as a perquisite of an office or employment with that person a sum equal to the amount which is released or written off, and<\/p>\n<p>(b)the individual or, in the case of an individual &#8211;<\/p>\n<p>(i)whose spouse is chargeable to tax for the year of assessment in accordance with section 1017, the spouse of the individual, or<\/p>\n<p>(ii)whose civil partner is chargeable to tax for the year of assessment in accordance with section 1031C, that civil partner,<\/p>\n<p>shall be charged to tax accordingly<\/p>\n<p>(4)Where for any year of assessment a sum is chargeable to tax under subsection (2) in respect of a preferential loan or loans or under subsection (3) in respect of an amount of interest written off or released, the individual to whom the loan or loans was or were made shall be deemed for the purposes of section 244 to have paid in the year of assessment an amount or additional amount of interest, as the case may be, on the loan or loans equal to such sum or the individual by whom the interest written off or released was payable shall be deemed for those purposes to have paid in the year of assessment the interest released or written off.<\/p>\n<p>(5)This section shall not apply to a loan made by an employer, being an individual, and shown to have been made in the normal course of his or her domestic, family or personal relationships.<\/p>\n<p>(6)Any amount chargeable to tax by virtue of this section shall not be emoluments for the purpose of section 472.<\/p>\n<p>(7)Every regulation made under this section shall be laid before D\u00e1il \u00c9ireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by D\u00e1il \u00c9ireann within the next 21 days on which D\u00e1il \u00c9ireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.<\/p>\n<p>122A.<\/p>\n<h4>Notional loans relating to shares, etc.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;acquisition&#8217;, in relation to shares, includes receipt by way of allotment or assignment;<\/p>\n<p>&#8216;connected person&#8217; has the same meaning as in section 10;<\/p>\n<p>&#8217;emoluments&#8217; has the same meaning as in section 113;<\/p>\n<p>&#8217;employee&#8217; and &#8217;employer&#8217; have the same meanings, respectively, assigned to them by section 122;<\/p>\n<p>&#8217;employment&#8217; has the same meaning as in section 121;<\/p>\n<p>&#8216;market value&#8217; shall be construed in accordance with section 548;<\/p>\n<p>&#8216;preferential loan&#8217; has the same meaning as in section 122;<\/p>\n<p>&#8216;shares&#8217; includes securities within the meaning of section 135 and stock.<\/p>\n<p>(2)Where an employee, or a person connected with him or her, acquires shares in a company (whether the employing company or not) and those shares are acquired at an under-value in pursuance of a right or opportunity available by reason of his or her employment, he or she shall be deemed to have the benefit of a loan on which no interest is payable (in this section referred to as the &#8216;notional loan&#8217;) made directly or indirectly to him or her by a person who at the time the loan is made is, or who at a time subsequent to the making of the loan becomes, an employer in relation to the individual and such notional loan shall be deemed to be a preferential loan to which section 122 applies.<\/p>\n<p>(3)This section shall apply, subject to Chapter 1 of Part 17, for a year of assessment in which an individual has, in accordance with subsection (2), a notional loan and in this section &#8211;<\/p>\n<p>(a)references to shares being acquired at an under-value are references to shares being acquired either without payment for them at the time or being acquired for an amount then paid which is less than the market value of fully paid-up shares of that class (in either case with or without obligation to make payment or further payment at some later time), and<\/p>\n<p>(b)any reference, in relation to any shares, to the under-value on acquisition is a reference to the market value of fully paid-up shares of that class less any payment then made for the shares.<\/p>\n<p>(4)The amount initially outstanding of the notional loan shall be so much of the under-value on acquisition as is not chargeable to tax as an emolument of the employee, and &#8211;<\/p>\n<p>(a)the loan shall remain outstanding until terminated under subsection (5), and<\/p>\n<p>(b)payments or further payments made for the shares after the initial acquisition shall go to reduce the amount outstanding of the notional loan.<\/p>\n<p>(5)The notional loan shall terminate on the occurrence of any of the following events &#8211;<\/p>\n<p>(a)the whole amount of it outstanding is made good by means of payments or further payments made for the shares;<\/p>\n<p>(b)the case being one in which the shares were not at the time of acquisition fully paid up, any outstanding or contingent obligation to pay for them is released, transferred or adjusted so as no longer to bind the employee or any person connected with him or her;<\/p>\n<p>(c)the shares are so disposed of by surrender or otherwise that neither he nor she nor any such person any longer has a beneficial interest in the shares;<\/p>\n<p>(d)the employee dies.<\/p>\n<p>(6)If the notional loan terminates in a manner referred to in subsection (5)(b) or (c), the provisions of section 122(3) shall apply as if an amount equal to the then outstanding amount of the notional loan had been released or written off from a loan within that section.<\/p>\n<p>(7)Where shares are acquired, whether or not at an under-value but otherwise as mentioned in subsection (2), and &#8211;<\/p>\n<p>(a)the shares are subsequently disposed of by surrender or otherwise so that neither the employee nor any person connected with him or her any longer has a beneficial interest in them, and<\/p>\n<p>(b)the disposal is for a consideration which exceeds the then market value of the shares,<\/p>\n<p>then, for the year in which the disposal is effected, the outstanding amount of the excess shall be treated as emoluments of the employee&#8217;s employment and accordingly chargeable to income tax under Schedule D or Schedule E.<\/p>\n<p>(8)If at the time of the event giving rise to a charge by virtue of subsection (6) the employment in question has terminated, that subsection shall apply as if it had not.<\/p>\n<p>(9)No charge arises under subsection (6) by reference to any disposal effected after the death of the employee, whether by his or her personal representatives or otherwise.<\/p>\n<p>(10)This section applies in relation to acquisition and disposal of an interest in shares less than full beneficial ownership (including an interest in the proceeds of sale of part of the shares but not including a share option) as it applies in relation to the acquisition and disposal of shares, subject to the following:<\/p>\n<p>(a)reference to the shares acquired shall be construed as reference to the interest in shares acquired,<\/p>\n<p>(b)reference to the market value of the shares acquired shall be construed as reference to the proportion corresponding to the size of the interest of the market value of the shares in which the interest subsists,<\/p>\n<p>(c)reference to shares of the same class as those acquired shall be construed as reference to shares of the same class as those in which the interest subsists,<\/p>\n<p>(d)reference to the market value of fully paid-up shares of that class shall be construed as reference to the proportion of that value corresponding to the size of the interest.<\/p>\n<p>(11)In this section, any reference to payment for shares includes giving any consideration in money or money&#8217;s worth or making any subscription, whether in pursuance of a legal liability or not.<\/p>\n<p>Chapter 5 Miscellaneous charging provisions (ss. 123-128F)<br \/>\n123.<\/p>\n<h4>General tax treatment of payments on retirement or removal from office or employment.<\/h4>\n<p>(1)This section shall apply to any payment (not otherwise chargeable to income tax) which is made, whether in pursuance of any legal obligation or not, either directly or indirectly in consideration or in consequence of, or otherwise in connection with, the termination of the holding of an office or employment or any change in its functions or emoluments, including any payment in commutation of annual or periodical payments (whether chargeable to tax or not) which would otherwise have been so made.<\/p>\n<p>(2)Subjct to section 201, income tax shall be charged under Schedule E in respect of any payment to which this section applies made to the holder or past holder of any office or employment, or to his or her executors or administrators, whether made by the person under whom he or she holds or held the office or employment or by any other person.<\/p>\n<p>(3)For the purposes of this section and section 201, any payment made to the spouse, civil partner, or any relative or dependant of a person who holds or has held an office or employment, or made on behalf of or to the order of that person, shall be treated as made to that person, and any valuable consideration other than money shall be treated as a payment of money equal to the value of that consideration at the date when it is given.<\/p>\n<p>(4)Any payment chargeable to tax by virtue of this section shall be treated as income received on the following date &#8211;<\/p>\n<p>(a)in the case of a payment in commutation of annual or other periodical payments, the date on which the commutation is effected, and<\/p>\n<p>(b)in the case of any other payment, the date of the termination or change in respect of which the payment is made,<\/p>\n<p>and shall be treated as emoluments of the holder or past holder of the office or employment assessable to income tax under Schedule E.<\/p>\n<p>(5)In the case of the death of any person who if he or she had not died would have been chargeable to tax in respect of any such payment, the tax which would have been so chargeable shall be assessed and charged on his or her executors or administrators, and shall be a debt due from and payable out of his or her estate.<\/p>\n<p>(6)Where any payment chargeable to tax under this section is made to any person in any year of assessment, it shall be the duty of the person by whom that payment is made to deliver particulars of the payment in writing to the inspector not later than 14 days after the end of that year.<\/p>\n<p>124.<\/p>\n<h4>Tax treatment of certain severance payments.<\/h4>\n<p>(1)This section shall apply to the following payments &#8211;<\/p>\n<p>(a)a termination allowance (other than that part of the allowance which comprises a lump sum) payable in accordance with section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992, and any regulations made under that section, and<\/p>\n<p>(b)a severance allowance or a special allowance payable in accordance with Part V (inserted by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992) of the Ministerial and Parliamentary Offices Act, 1938.<\/p>\n<p>(2)Notwithstanding any other provision of the Income Tax Acts, payments to which this section applies shall be deemed to be &#8211;<\/p>\n<p>(a)profits or gains accruing from an office or employment (and accordingly tax under Schedule E shall be charged on those payments, and tax so chargeable shall be computed under section 112(1)), and<\/p>\n<p>(b)emoluments to which Chapter 4 of Part 42 is applied by section 984.<\/p>\n<p>124A.<\/p>\n<h4>Tax treatment of payments made pursuant to an order under section 2B of Employment Permits Act 2003.<\/h4>\n<p>(1)Payments made pursuant to an order under section 2B of the Employment Permits Act 2003 shall be regarded as &#8211;<\/p>\n<p>(a)profits or gains accruing from an office or employment (and accordingly tax under Schedule E shall be charged on those payments, and tax so chargeable shall be computed under section 112(1)), and<\/p>\n<p>(b)emoluments to which Chapter 4 of Part 42 applies.<\/p>\n<p>125.<\/p>\n<h4>Tax treatment of benefits received under permanent health benefit schemes.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;benefit&#8221; means a payment made to a person under a permanent health benefit scheme in the event of loss or diminution of income in consequence of ill health;<\/p>\n<p>&#8220;permanent health benefit scheme&#8221; means any scheme, contract, policy or other arrangement, approved by the Revenue Commissioners for the purposes of this section, which provides for periodic payments to an individual in the event of loss or diminution of income in consequence of ill health.<\/p>\n<p>(2)<\/p>\n<p>(a)A policy of permanent health insurance, sickness insurance or other similar insurance issued in respect of an insurance made on or after the 6th day of April, 1986, shall be a permanent health benefit scheme within the meaning of this section if it conforms with a form which, at the time the policy is issued, is either &#8211;<\/p>\n<p>(i)a standard form approved by the Revenue Commissioners as a standard form of permanent health benefit scheme, or<\/p>\n<p>(ii)a form varying from a standard form so approved in no other respect than by making such alterations to that standard form as are, at the time the policy is issued, approved by the Revenue Commissioners as being compatible with a permanent health benefit scheme when made to that standard form and satisfying any conditions subject to which the alterations are so approved.<\/p>\n<p>(b)In approving a policy as a standard form of permanent health benefit scheme in pursuance of paragraph (a), the Revenue Commissioners may disregard any provision of the policy which appears to them insignificant.<\/p>\n<p>(3)<\/p>\n<p>(a)Any benefit received by a person under a permanent health benefit scheme, whether as of right or not, shall be deemed to be &#8211;<\/p>\n<p>(i)profits or gains arising or accruing from an employment, and<\/p>\n<p>(ii)emoluments within the meaning of Chapter 4 of Part 42.<\/p>\n<p>(b)Tax under Schedule E shall be charged on every person to whom any benefit referred to in paragraph (a) is paid in respect of all such benefits paid to such person, and tax so chargeable shall be computed under section 112(1).<\/p>\n<p>(4)The Revenue Commissioners may nominate any of their officers, including an inspector, to perform any acts and discharge any functions authorised by this section to be performed or discharged by them.<\/p>\n<p>126.<\/p>\n<h4>Tax treatment of certain benefits payable under Social Welfare Acts.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>\u2018the Acts\u2019 means the Social Welfare Acts;<\/p>\n<p>\u2018the Act of 2005\u2019 means the Social Welfare Consolidation Act 2005.<\/p>\n<p>(2)<\/p>\n<p>(a)This subsection shall apply to the following benefits payable under the Acts &#8211;<\/p>\n<p>(i)widow&#8217;s (contributory) pension,<\/p>\n<p>(ii)orphan&#8217;s (contributory) allowance,<\/p>\n<p>(iii)retirement pension, and<\/p>\n<p>(iv)old age (contributory) pension.<\/p>\n<p>(b)Payments of benefits to which this subsection applies shall be deemed to be emoluments to which Chapter 4 of Part 42 applies.<\/p>\n<p>(2A)<\/p>\n<p>(a)This subsection shall apply to the following benefits payable on or after 1 July 2013 under the Acts &#8211;<\/p>\n<p>(i)maternity benefit,<\/p>\n<p>(ii)adoptive benefit,<\/p>\n<p>(iii)health and safety benefit,<\/p>\n<p>(iv)paternity benefit, and<\/p>\n<p>(v)parent\u2019s benefit.<\/p>\n<p>(b)Amounts to be paid on foot of the benefits to which this subsection applies shall be deemed &#8211;<\/p>\n<p>(i)to be profits or gains arising or accruing from an employment (and accordingly tax under Schedule E shall be charged on every person to whom any such benefit is payable in respect of amounts to be paid on foot of such benefits, and tax so chargeable shall be computed under section 112(1)), and<\/p>\n<p>(ii)to be emoluments to which Chapter 4 of Part 42 applies.<\/p>\n<p>(2B)Notwithstanding the provisions of section 112(1), where an increase in the amount of a pension to which section 112, 113, 117 or 157, as the case may be, of the Social Welfare Consolidation Act 2005 applies is paid in respect of a qualified adult (within the meaning of the Acts), that increase shall be treated for all the purposes of the Income Tax Acts as if it arises to and is payable to the beneficiary referred to in those sections of that Act.<\/p>\n<p>(3)<\/p>\n<p>(a)This subsection shall apply to the following benefits payable under the Acts &#8211;<\/p>\n<p>(i)illness benefit,<\/p>\n<p>(ii)jobseeker\u2019s benefit,<\/p>\n<p>(iia)jobseeker\u2019s benefit (self-employed),<\/p>\n<p>(iib)the payments, commonly known as the pandemic unemployment payments, made under section 202 of the Act of 2005 on and after 13 March 2020 to the relevant date (within the meaning of section 7 of that Act),<\/p>\n<p>(iic)Covid-19 pandemic unemployment payment (within the meaning of the Act of 2005),<\/p>\n<p>(iii)injury benefit which is comprised in occupational injuries benefit, and<\/p>\n<p>(iv)pay-related benefit.<\/p>\n<p>(b)Amounts to be paid on foot of the benefits to which this subsection applies (other than amounts so payable in respect of a qualified child within the meaning of section 2(3) of the Social Welfare Consolidation Act 2005) shall be deemed &#8211;<\/p>\n<p>(i)to be profits or gains arising or accruing from an employment (and accordingly tax under Schedule E shall be charged on every person to whom any such benefit is payable in respect of amounts to be paid on foot of such benefits, and tax so chargeable shall be computed under section 112(1)), and<\/p>\n<p>(ii)except in the case of amounts so payable in respect of jobseeker\u2019s benefit (self-employed), to be emoluments to which Chapter 4 of Part 42 is applied by section 984.<\/p>\n<p>(c)<\/p>\n<p>(i)In this paragraph &#8216; short-time employment &#8216; has the same meaning as it has for the purposes of the Acts.<\/p>\n<p>(ii)Notwithstanding paragraphs (a) and (b) and the Finance Act 1992 (Commencement of Section 15) (Unemployment Benefit and Pay-Related Benefit) Order 1994 (S.I. No. 19 of 1994), paragraph (b) shall not apply in relation to jobseeker\u2019s benefit or jobseeker\u2019s benefit (self-employed) paid or payable, to a person employed in short-time employment.<\/p>\n<p>(4)<\/p>\n<p>(a)In this subsection, &#8220;income tax week&#8221; means one of the successive periods of 7 days in a year of assessment beginning on the 1st day of that year, or on any 7th day after that day, and the last day of a year of assessment (or the last 2 days of a year of assessment ending in a leap year) shall be taken as included in the last income tax week of that year of assessment.<\/p>\n<p>(b)Notwithstanding subsection (3), the first \u20ac13 of the aggregate of the amounts of jobseeker\u2019s benefit or jobseeker\u2019s benefit (self-employed) payable to a person in respect of one or more days of unemployment comprised in any income tax week (other than an amount so payable in respect of a qualified child within the meaning of section 2(3)(a) of the Social Welfare (Consolidation) Act, 1993) shall be disregarded for the purposes of the Income Tax Acts.<\/p>\n<p>(5)[deleted]<\/p>\n<p>(6)<\/p>\n<p>(a)Subsection (3) shall come into operation on such day or days as may be fixed for that purpose by order or orders of the Minister for Finance, either generally or with reference to any particular benefit to which that subsection applies, or with reference to any category of person in receipt of any particular benefit to which that subsection applies, and different days may be so fixed for different benefits or categories of persons in receipt of benefits.<\/p>\n<p>(b)Where an order is proposed to be made under this subsection, a draft of the order shall be laid before D\u00e1il \u00c9ireann, and the order shall not be made until a resolution approving of the draft has been passed by D\u00e1il \u00c9ireann.<\/p>\n<p>(6A)A payment which is &#8211;<\/p>\n<p>(a)described in column (1) of the Table to this section,<\/p>\n<p>(b)paid on the basis specified in column (2) of that Table, and<\/p>\n<p>(c)made by the Minister for Employment Affairs and Social Protection to an individual on or after 1 January 2019,<\/p>\n<p>shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.<\/p>\n<p>(6B)A payment which &#8211;<\/p>\n<p>(a)is described in column (1) of the Table to this section,<\/p>\n<p>(b)is paid on the basis specified in column (2) of that Table, and<\/p>\n<p>(c)was made by the Minister for Employment Affairs and Social Protection to an individual before 1 January 2019,<\/p>\n<p>shall be treated as if it was exempt from income tax in the year of assessment to which it relates and shall not be reckoned in computing income for the purposes of the Income Tax Acts.<\/p>\n<p>(7)[deleted]<\/p>\n<p>(8)[deleted]<\/p>\n<p>TABLE<\/p>\n<p>Description of payment<\/p>\n<p>Basis on which payment is made<\/p>\n<p>(1)<\/p>\n<p>(2)<\/p>\n<p>Basic supplementary welfare allowance<\/p>\n<p>Section 189 of the Act of 2005<\/p>\n<p>Back to education allowance<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Back to education allowance\u2019<\/p>\n<p>Back to work enterprise allowance<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Back to work enterprise allowance\u2019<\/p>\n<p>Back to school clothing and footwear allowance<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Back to school clothing and footwear allowance\u2019<\/p>\n<p>Carer\u2019s support grant<\/p>\n<p>Section 225 of the Act of 2005<\/p>\n<p>Constant attendance allowance<\/p>\n<p>Section 78 of the Act of 2005<\/p>\n<p>Death benefit &#8211; funeral expenses<\/p>\n<p>Section 84 of the Act of 2005<\/p>\n<p>Death benefit &#8211; orphans<\/p>\n<p>Section 83 of the Act of 2005<\/p>\n<p>Direct provision allowance<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Direct provision allowance\u2019<\/p>\n<p>Disability allowance<\/p>\n<p>Section 210 of the Act of 2005<\/p>\n<p>Disablement gratuity<\/p>\n<p>Section 75(8) of the Act of 2005<\/p>\n<p>Domiciliary care allowance<\/p>\n<p>Section 186F of the Act of 2005<\/p>\n<p>Exceptional needs payment<\/p>\n<p>Section 201 of the Act of 2005<\/p>\n<p>Farm assist<\/p>\n<p>Section 214 of the Act of 2005<\/p>\n<p>Fuel allowance<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Fuel allowance\u2019<\/p>\n<p>Guardian\u2019s payment (contributory)<\/p>\n<p>Section 130 of the Act of 2005<\/p>\n<p>Guardian\u2019s payment (non-contributory)<\/p>\n<p>Section 168 of the Act of 2005<\/p>\n<p>Household benefit package<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Household benefit package\u2019<\/p>\n<p>Humanitarian assistance payment<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Humanitarian assistance payment\u2019<\/p>\n<p>Jobseeker\u2019s allowance<\/p>\n<p>Section 141 of the Act of 2005<\/p>\n<p>Jobseeker\u2019s transitional payment<\/p>\n<p>Section 148A of the Act of 2005<\/p>\n<p>Medical care<\/p>\n<p>Section 86 of the Act of 2005<\/p>\n<p>Part-time job incentive scheme<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Part-time job incentive scheme\u2019<\/p>\n<p>Rent allowance<\/p>\n<p>Section 23 of the Housing (Private Rented Dwellings) Act 1982<\/p>\n<p>Supplementary welfare allowance<\/p>\n<p>Section 198 of the Act of 2005<\/p>\n<p>Telephone support allowance<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Telephone support allowance\u2019<\/p>\n<p>Training support grant<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Training support grant\u2019<\/p>\n<p>Urgent needs payment (other than the payments referred to in subsection (3)(a)(iib))<\/p>\n<p>Section 202 of the Act of 2005<\/p>\n<p>Widowed or surviving civil partner grant<\/p>\n<p>Section 137 of the Act of 2005<\/p>\n<p>Working family payment<\/p>\n<p>Section 228 of the Act of 2005<\/p>\n<p>Youth employment support scheme<\/p>\n<p>A payment made under a scheme administered by the Minister for Employment Affairs and Social Protection and known as \u2018Youth employment support scheme\u2019<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>127.<\/p>\n<h4>Tax treatment of restrictive covenants.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8220;accounting period&#8221; means an accounting period determined in accordance with section 27;<\/p>\n<p>&#8220;basis period&#8221; means the period on the profits or gains of which income tax is to be finally computed under Schedule D or, where by virtue of the Income Tax Acts the profits or gains of any other period are to be taken to be the profits or gains of that period, that other period;<\/p>\n<p>&#8220;office or employment&#8221; means any office or employment whatever such that the emoluments of that office or employment, if any, are or would be chargeable to income tax under Schedule E or under Case III of Schedule D for any year of assessment;<\/p>\n<p>references to the giving of valuable consideration shall not include references to the mere assumption of an obligation to make over or provide valuable property, rights or advantages, but shall include references to the doing of anything in or towards the discharge of such an obligation.<\/p>\n<p>(2)Where &#8211;<\/p>\n<p>(a)an individual who holds, has held or is about to hold an office or employment gives, in connection with the holding of the office or employment, an undertaking (whether absolute or qualified and whether legally valid or not), the tenor or effect of which is to restrict the individual as to his or her conduct or activities,<\/p>\n<p>(b)in respect of the giving of that undertaking by the individual, or of the total or partial fulfilment of that undertaking by the individual, any sum is paid either to the individual or to any other person, and<\/p>\n<p>(c)apart from this section, the sum paid would not be treated as profits or gains from the office or employment,<\/p>\n<p>the sum paid shall be deemed &#8211;<\/p>\n<p>(i)to be profits or gains arising or accruing from the office or employment, and accordingly &#8211;<\/p>\n<p>(I)in a case where the profits or gains from the office or employment are or would be chargeable to tax under Schedule E, tax under that Schedule shall be charged on that sum, and tax so chargeable shall be computed under section 112(1), or<\/p>\n<p>(II)in a case where the profits or gains from the office or employment are or would be chargeable to tax under Case III of Schedule D, tax under that Case shall be charged on that sum,<\/p>\n<p>and<\/p>\n<p>(ii)in a case within paragraph (i)(I), to be emoluments to which Chapter 4 of Part 42 is applied by section 984,<\/p>\n<p>for the year of assessment in which the sum is paid; but where the individual has died before the payment of the sum this subsection shall apply as if the sum had been paid immediately before the individual&#8217;s death.<\/p>\n<p>(3)Where valuable consideration otherwise than in the form of money is given in respect of the giving of, or of the total or partial fulfilment of, any undertaking, subsection (2) shall apply as if a sum had instead been paid equal to the value of that consideration.<\/p>\n<p>(4)Notwithstanding section 81(2), where any sum paid or valuable consideration given by a person carrying on a trade or profession is chargeable to tax in accordance with subsection (2), the sum paid or the value of the consideration given, as the case may be, may be deducted as an expense in computing for the purposes of Schedule D the profits or gains of that person&#8217;s trade or profession, as the case may be &#8211;<\/p>\n<p>(a)in the case of a person chargeable to income tax, for the basis period, or<\/p>\n<p>(b)in the case of a person chargeable to corporation tax, for the accounting period,<\/p>\n<p>in which the sum is paid or valuable consideration is given.<\/p>\n<p>(5)Where any sum paid or valuable consideration given by an investment company (within the meaning of section 83), or a company to which section 83 applies by virtue of section 707, is chargeable to tax in accordance with subsection (2), the sum paid or the value of consideration given, as the case may be, shall for the purposes of section 83 be treated as an expense of management for the accounting period in which the sum is paid or valuable consideration is given.<\/p>\n<p>(6)This section shall apply in relation to any sum paid or consideration given in respect of the giving of, or the total or partial fulfilment of, any undertaking whenever given.<\/p>\n<p>127A.<\/p>\n<h4>Tax treatment of members of the European Parliament.<\/h4>\n<p>(1)Notwithstanding any other provision of the Tax Acts, income arising to any individual as a member of the European Parliament and payable out of moneys provided &#8211;<\/p>\n<p>(a)by the Oireachtas, shall be chargeable to tax under Schedule E, or<\/p>\n<p>(b)by the budget of the European Union, shall be chargeable to tax under Case III of Schedule D.<\/p>\n<p>(2)Any income tax liability arising in the State in respect of any such income referred to in subsection (1) shall be reduced by the amount of tax, if any, paid for the benefit of the budget of the European Union in respect of such income.<\/p>\n<p>127B. Tax treatment of flight crew in international traffic.<br \/>\n(1)Income arising to any individual, whether resident in the State or not, from any employment exercised aboard an aircraft &#8211;<\/p>\n<p>(a)that is operated in international traffic, and<\/p>\n<p>(b)where the aircraft is so operated by an enterprise that has its place of effective management in the State,<\/p>\n<p>shall be chargeable to tax under Schedule E.<\/p>\n<p>(1A)Subsection (1) shall not apply for the year of assessment 2022 or any subsequent year of assessment where, for that year of assessment an individual &#8211;<\/p>\n<p>(a)is not resident in the State,<\/p>\n<p>(b)is resident for the purposes of tax, by virtue of the law of the territory next-mentioned in this paragraph, in a territory with the government of which arrangements are for the time being in force by virtue of section 826(1), and<\/p>\n<p>(c)is subject to tax on the income referred to in subsection (1) in a territory with the government of which arrangements are for the time being in force by virtue of section 826(1).<\/p>\n<p>(2)For the purposes of an arrangement to which this section and section 826 applies, &#8216;international traffic&#8217;, in relation to an aircraft, does not include an aircraft operated solely between places in another state.<\/p>\n<p>128.<\/p>\n<h4>Tax treatment of directors of companies and employees granted rights to acquire shares or other assets.<\/h4>\n<p>(1)<\/p>\n<p>(a)In this section, except where the context otherwise requires &#8211;<\/p>\n<p>&#8220;branch or agency&#8221; has the same meaning as in section 4;<\/p>\n<p>&#8220;company&#8221; has the same meaning as in section 4;<\/p>\n<p>&#8220;director&#8221; and &#8220;employee&#8221; have the meanings respectively assigned to them by section 770(1);<\/p>\n<p>&#8220;right&#8221; means a right to acquire any asset or assets including shares in any company;<\/p>\n<p>&#8220;market value&#8221; shall be construed in accordance with section 548;<\/p>\n<p>&#8220;shares&#8221; includes securities within the meaning of section 135 and stock.<\/p>\n<p>(b)In this section &#8211;<\/p>\n<p>(i)references to the release of a right include references to agreeing to the restriction of the exercise of the right;<\/p>\n<p>(ii)a person shall be regarded as acquiring a right as a director of a company or as an employee &#8211;<\/p>\n<p>(I)if by reason of the person&#8217;s office or employment it is granted to the person, or to another person who assigns the right to the person, and<\/p>\n<p>(II)if section 71(3) does not apply in charging to tax the profits or gains of that office or employment,<\/p>\n<p>and clauses (I) and (II) shall apply to a right granted by reason of a person&#8217;s office or employment before the person has commenced to hold it or after the person has ceased to hold it as they would apply if the person had commenced to hold the office or employment or had not ceased to hold the office or employment, as the case may be.<\/p>\n<p>(2)Where a person realises a gain by the exercise of, or by the assignment or release of, a right obtained by the person on or after the 6th day of April, 1986, as a director of a company or employee, the person shall be chargeable to tax under Schedule E for the year of assessment in which the gain is so realised on an amount equal to the amount of his or her gain as computed in accordance with this section and shall be so chargeable notwithstanding that he or she was not resident in the State on the date on which the right was obtained.<\/p>\n<p>(2A)Notwithstanding any other provision of the Tax Acts and subject to subsection (2B), where a person is, by virtue of this section, chargeable to tax under Schedule E for a year of assessment in respect of an amount equal to the gain realised from the exercise, assignment or release of a right, he or she shall be a chargeable person for that year for the purposes of Part 41A, unless &#8211;<\/p>\n<p>(a)[deleted]<\/p>\n<p>(b)the person has been exempted by an inspector from the requirements of Chapter 3 of Part 41A by reason of a notice given under section 959N.<\/p>\n<p>(2B)Where a gain is realised by the exercise of, or by the assignment or release of, a right on or after 1 January 2024 and a charge to tax arises under this section, Chapter 4 of Part 42 shall apply in respect of the gain.<\/p>\n<p>(3)Subject to subsection (5), where tax may by virtue of this section become chargeable in respect of any gain which may be realised by the exercise of a right, tax shall not be chargeable under any other provision of the Tax Acts in respect of the receipt of the right.<\/p>\n<p>(4)The gain realised by &#8211;<\/p>\n<p>(a)the exercise of any right at any time shall be taken to be the difference between the market value of the asset or assets, as the case may be, at the time of acquisition and the aggregate amount or value of the consideration, if any, given for the asset or assets and for the grant of the right, and<\/p>\n<p>(b)the assignment or release of any right shall be taken to be the difference between the amount or value of the consideration for the assignment or release and the amount or value of the consideration, if any, given for the grant of the right,<\/p>\n<p>and for this purpose the inspector may make a just apportionment of any entire consideration given for the grant of the right or for the grant of the right and for something besides; but neither the consideration given for the grant of the right nor any such entire consideration shall be taken to include the performance of any duties in or in connection with an office or employment, and no part of the amount or value of the consideration given for the grant shall be deducted more than once under this subsection.<\/p>\n<p>(5)<\/p>\n<p>(a)Where a right mentioned in subsection (2) is obtained as mentioned in that subsection and the right is capable of being exercised later than 7 years after it is obtained, subsection (3) shall not prevent the charging of tax under any other provision of the Tax Acts in respect of the receipt of the right; but where tax is charged under such provision it shall be deducted from any tax which under subsection (2) is chargeable by reference to the gain realised by the exercise, assignment or release of the right.<\/p>\n<p>(b)For the purpose of any charge to tax enabled to be made by this subsection, the value of a right shall be taken to be not less than the market value at the time the right is obtained of the asset or assets which may be acquired by the exercise of the right or of any asset or assets for which the asset or assets so acquired may be exchanged, reduced by the amount or value (or, if variable, the least amount or value) of the consideration for which the asset or assets may be so acquired.<\/p>\n<p>(6)<\/p>\n<p>(a)Subject to subsection (7), a person shall, in the case of a right granted by reason of the person&#8217;s office or employment, be chargeable to tax under this section in respect of a gain realised by another person &#8211;<\/p>\n<p>(i)if the right was granted to that other person,<\/p>\n<p>(ii)if the other person acquired the right otherwise than by or under an assignment made by means of a bargain at arm&#8217;s length,<\/p>\n<p>(iii)if the 2 persons are connected persons at the time when the gain is realised, or<\/p>\n<p>(iv)if the person benefits directly or indirectly from the exercise, assignment or release of the right by the other person;<\/p>\n<p>but in a case within subparagraphs (ii), (iii), or (iv), the gain realised shall be treated as reduced by the amount of any gain realised by a previous holder on an assignment of the right.<\/p>\n<p>(b)For the purposes of this subsection, a gain realised by another person shall include a gain realised on the exercise of a right by the person in respect of whose office or employment the right was granted, where that person exercises the right as nominee or bare trustee of the other person, or otherwise on behalf of the other person.<\/p>\n<p>(7)A person shall not be chargeable to tax by virtue of subparagraph (ii) or (iii) of subsection (6)(a) in respect of any gain realised by another person if the first-mentioned person was divested of the right by operation of law on the first-mentioned person&#8217;s bankruptcy or otherwise, but the other person shall be chargeable to tax in respect of the gain under Case IV of Schedule D.<\/p>\n<p>(8)<\/p>\n<p>(a)Where a right (referred to in this subsection as the &#8216;original right&#8217;) is assigned or released and the whole or part of the consideration for the assignment or release consists of or comprises another right (referred to in this subsection as the &#8216;new right&#8217;) the new right shall not be treated as consideration for the assignment or release; but this section shall apply in relation to the new right as it applies in relation to the original right and as if the consideration for its acquisition did not include the value of the original right but did include the amount or value of the consideration given for the grant of the original right in so far as that has not been offset by any valuable consideration for the assignment or release other than the consideration consisting of the new right.<\/p>\n<p>(b)The operation of paragraph (a) shall not prevent a charge arising under this section on a gain realised by the exercise of the original right.<\/p>\n<p>(9)<\/p>\n<p>(a)Where as a result of 2 or more transactions a person ceases to hold a right and the person or a connected person comes to hold another right (whether or not acquired from the person to whom the other right was assigned) and any of those transactions was effected under arrangements to which 2 or more persons holding rights in respect of which tax may be chargeable under this section were parties, those transactions shall be treated for the purposes of subsection (8) as a single transaction whereby the one right is assigned for a consideration which consists of or comprises the other right.<\/p>\n<p>(b)This subsection shall apply in relation to 2 or more transactions, whether they involve an assignment preceding, coinciding with, or subsequent to, an acquisition.<\/p>\n<p>(10)Where a gain chargeable to tax under subsection (2) or (6) is realised by the exercise of a right, section 552 shall apply as if a sum equal to the amount of the gain so chargeable to tax formed part of the consideration given by the person acquiring the shares for their acquisition by that person.<\/p>\n<p>(11)Where in any year of assessment a person grants a right in respect of which tax may be chargeable under this section, or allots any shares or transfers any asset in pursuance of such a right, or gives any consideration for the assignment or release in whole or in part of such a right, or receives written notice of the assignment of such a right, the person shall deliver particulars thereof to the Revenue Commissioners, in an electronic format approved by them, not later than 31 March in the year of assessment following that year.<\/p>\n<p>(12)Where in relation to any right &#8211;<\/p>\n<p>(a)the person referred to in subsection (11) is not resident in the State, and<\/p>\n<p>(b)the person who obtains the right is a director or employee of a company which is either &#8211;<\/p>\n<p>(i)resident in the State, or<\/p>\n<p>(ii)not resident in the State but carries on a trade, profession or vocation in the State through a branch or agency in which the director or employee is employed,<\/p>\n<p>subsection (11) shall, as regards a company referred to in paragraph (b)(i) apply to the company, and, as regards a company referred to in paragraph (b)(ii) apply to its agent, manager, factor or other representative.<\/p>\n<p>128A.<\/p>\n<h4>Deferral of payment of tax under section 128.<\/h4>\n<p>(1)Subject to subsection (2), in any case where &#8211;<\/p>\n<p>(a)for any year of assessment a person is chargeable to tax under Schedule E, by virtue of section 128, on an amount equal to a gain realised by the exercise of a right to acquire shares in a company (&#8216;the relevant shares&#8217;), which right was exercised in the period from 6 April 2000 to the date of the passing of the Finance Act 2003, and<\/p>\n<p>(b)following an assessment for the year in which that right was exercised (&#8216;the relevant year&#8217;) an amount of tax, chargeable by virtue of section 128 in respect of the amount referred to in paragraph (a), is payable to the Collector-General, and<\/p>\n<p>(c)the person concerned makes an election in accordance with subsection (3),<\/p>\n<p>he or she shall be entitled to defer payment of the tax in accordance with subsection (4).<\/p>\n<p>(2)Subsection (1) shall not apply where the relevant shares are disposed of by the person concerned in the relevant year.<\/p>\n<p>(3)An election under this section shall be made by notice in writing to the inspector on or before &#8211;<\/p>\n<p>(a)where the relevant year is the year of assessment 2000-2001, 31 January 2002, and<\/p>\n<p>(b)where the relevant year is the year of assessment 2001 or any subsequent year of assessment, 31 October in the year of assessment following the relevant year.<\/p>\n<p>(4)Where an election has been made under this section the tax referred to in subsection (1)(b) shall notwithstanding any other provision of the Income Tax Acts, but subject to the provisions of this section, be paid on or before the earlier of &#8211;<\/p>\n<p>(a)31 October in the year of assessment following the year of assessment in which the relevant shares are disposed of, or<\/p>\n<p>(b)31 October in the year of assessment following the year of assessment beginning 7 years after the relevant year.<\/p>\n<p>(4A)<\/p>\n<p>(a)Notwithstanding subsection (4), where an election has been made in accordance with subsection (3) and<\/p>\n<p>(i)relevant shares are disposed of (in this subparagraph referred to as the &#8216;first-mentioned disposal&#8217;), and<\/p>\n<p>(I)but for this subparagraph, tax would be payable, by reference to the first-mentioned disposal, in accordance with subsection (4)(a), and<\/p>\n<p>(II)the market value of those shares at the date of the first-mentioned disposal is less than the tax chargeable under section 128, by reference to the exercise of an option to acquire those shares,<\/p>\n<p>then an amount, being an amount equal to that market value, shall be due and payable to the Collector-General within 30 days after the date of the first-mentioned disposal or, if later, on or before 30 June 2003, and the balance of the tax chargeable remaining unpaid after that payment shall be payable in the event of, and by reference to, disposals of any shares in a company in a year of assessment, in accordance with paragraph (d), being disposals after the date of the first-mentioned disposal, or<\/p>\n<p>(ii)relevant shares are held at 31 December in the year of assessment beginning 7 years after the relevant year (in this subparagraph referred to as the &#8216;first-mentioned date&#8217;), and<\/p>\n<p>(I)but for this subparagraph, tax would be payable in accordance with subsection (4)(b), and<\/p>\n<p>(II)the market value of the relevant shares is, at the first-mentioned date, less than the tax chargeable under section 128, by reference to the exercise of an option to acquire those shares,<\/p>\n<p>then an amount, being an amount equal to that market value, shall be due and payable to the Collector-General within 30 days after the date of the first-mentioned date and the balance of the tax chargeable remaining unpaid after that payment shall be payable in the event of, and by reference to, disposals of any shares in a company in a year of assessment, in accordance with paragraph (d), being disposals after the first-mentioned date.<\/p>\n<p>(b)Where a person who is entitled to make an election in accordance with subsection (3), after 6 February 2003 and on or before 31 October in the year of assessment following the relevant year in respect of relevant shares, does not do so, or tax chargeable under section 128, in respect of any gain realised by the exercise before 6 February 2003 of a right to acquire shares, is due after 6 February 2003 but on or before 31 October in the year of assessment following the relevant year, and the market value of the shares on &#8211;<\/p>\n<p>(i)that 31 October, or<\/p>\n<p>(ii)where the shares are disposed of before that date, the date of the disposal (referred to in this paragraph as the &#8216;first-mentioned disposal&#8217;) of the shares,<\/p>\n<p>is less than the tax chargeable under section 128, then an amount, being an amount equal to that market value, shall be due and payable to the Collector-General within 30 days after the said 31 October, and the balance of the tax chargeable remaining unpaid after that payment shall be payable in the event of, and by reference to, disposals of any shares in a company in a year of assessment, in accordance with paragraph (d), being disposals after the said 31 October or the date of the first-mentioned disposal of the shares, as the case may be.<\/p>\n<p>(c)In all cases other than those referred to in paragraph (a) or (b), where tax is chargeable under section 128 on an amount equal to a gain realised by the exercise, at any time before 6 February 2003, of a right to acquire shares in a company, and the market value of the shares on &#8211;<\/p>\n<p>(i)that date, or<\/p>\n<p>(ii)where the shares are disposed of before that date, the date of the disposal of the shares,<\/p>\n<p>is less than the tax chargeable under section 128, then an amount, being an amount equal to that market value, shall be due and payable to the Collector-General on or before 30 June 2003, and the balance of the tax chargeable remaining unpaid after that payment shall be payable in the event of, and by reference to, disposals of any shares in a company in a year of assessment, in accordance with paragraph (d), being disposals after 6 February 2003.<\/p>\n<p>(d)<\/p>\n<p>(i)A payment that is to be made in the event of, and by reference to, disposals of any shares in a year of assessment shall be a payment which is the lesser of &#8211;<\/p>\n<p>(I)the aggregate of the balances of unpaid tax referred to in paragraphs (a), (b) and (c), as reduced by tax payable in accordance with this paragraph by reference to disposals of shares in a previous year of assessment, and<\/p>\n<p>(II)half of the aggregate of the net gains (if any) arising in respect of disposals of shares in the year of assessment.<\/p>\n<p>(ii)For the purposes of subparagraph (i)(II), the net gain arising in relation to a disposal of shares shall be the market value at the date of disposal of those shares reduced by so much of the aggregate of &#8211;<\/p>\n<p>(I)the amount of the consideration, if any, given for the shares (including, where relevant, the grant of a right to acquire the shares),<\/p>\n<p>(II)<\/p>\n<p>(A)where this subsection does not apply to the payment of income tax chargeable under section 128 by reference to the acquisition of the shares, the amount of the income tax so chargeable, or<\/p>\n<p>(B)where this subsection does apply to the payment of income tax chargeable under section 128 by reference to the acquisition of the shares, the total amount paid, before the date of the disposal, in respect of that income tax,<\/p>\n<p>and<\/p>\n<p>(III)capital gains tax chargeable by reference to the disposal of the shares, as does not exceed that market value.<\/p>\n<p>(iii)For the purposes of subparagraph (ii), the income tax or capital gains tax, as the case may be, so chargeable shall be the amount by which the income tax or capital gains tax, as the case may be, chargeable on the taxpayer for the year of assessment would have been reduced if the acquisition or disposal of the shares, as the case may be, had not taken place.<\/p>\n<p>(iv)Payments referred to in paragraph (d)(i) which are to be made by reference to disposals of shares shall be due and payable to the Collector-General on or before 31 October in the year following the year of assessment in which the disposal of those shares takes place.<\/p>\n<p>(e)<\/p>\n<p>(i)A taxpayer who wishes to be entitled to avail of the provisions of this subsection shall so elect, by giving notice in writing to the inspector, on or before 1 June 2003 in a form prescribed or authorised by the Revenue Commissioners, and the notice shall contain details of &#8211;<\/p>\n<p>(I)the date of exercise of the option,<\/p>\n<p>(II)the number of shares acquired by exercise of the option,<\/p>\n<p>(III)the market value of the shares at date of exercise of that option, and<\/p>\n<p>(IV)such further particulars for the purposes of this subsection as may be required or indicated by the Revenue Commissioners.<\/p>\n<p>(ii)The inspector or such other officer as the Revenue Commissioners shall appoint in that behalf may admit a late election under subparagraph (i) in circumstances where he or she is satisfied that the delay in making the election was due to absence, illness or other reasonable cause.<\/p>\n<p>(f)In any case where, at any time, the requirements of this subsection have not been fully complied with, any amount of tax chargeable under section 128 which is unpaid shall be due and payable as if this subsection had not been enacted.<\/p>\n<p>(g)Any tax chargeable under section 128 which is due and payable in accordance with subsection (4) or this subsection, which remains unpaid at the date of death of the chargeable person, shall be discharged by the Revenue Commissioners.<\/p>\n<p>(h)Any amount paid before 6 February 2003 in respect of tax chargeable under section 128 shall not be repaid by reference to any provision of this subsection.<\/p>\n<p>(i)The reference in paragraph (d) to the disposal of shares includes a reference to the disposal of shares by the spouse or civil partner of the person chargeable &#8211;<\/p>\n<p>(I)in a case where section 1017 or 1031C, as the case may be, applies,<\/p>\n<p>or<\/p>\n<p>(II)in a case where section 1017 or 1031C, as the case may be, does not apply, but the disposal &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>(A)is a disposal by the spouse subsequent to a transfer, on or after 25 February 2003, of the shares from the other spouse, except where the spouses are separated in the circumstances referred to in paragraph (a) or (b) of section 1015(2), or their marriage has been dissolved under either section 5 of the Family Law (Divorce) Act 1996, or the law of a country or jurisdiction other than the State, being a dissolution that is entitled to be recognised as valid in the State, or<\/p>\n<p>(B)is a disposal by a civil partner subsequent to a transfer of the shares from his or her civil partner, except where the civil partnership has been dissolved either under section 110 of the Civil Partnership and Certain Rights and Obligations of Cohabitants Act 2010, or the law of a country or jurisdiction other than the State, being a dissolution that is entitled to be recognised as valid in the State.<\/p>\n<p>(j)A person shall not, at any time, be entitled to avail of the provisions of this subsection where, at that time, he or she has not paid, or agreed an arrangement acceptable to the Collector-General for the payment of, tax due and payable which is chargeable under section 128 in respect of the exercise of a right to acquire shares to which this subsection does not apply.<\/p>\n<p>(k)In this subsection &#8211;<\/p>\n<p>&#8216;market value&#8217; shall be construed in accordance with section 548;<\/p>\n<p>&#8216;shares&#8217; includes securities within the meaning of section 135 and stock.<\/p>\n<p>(4B)In any case where the provisions of subsection (4A) apply, the amount by which the market value of the shares at the time of acquisition exceeds the market value at the date of disposal of those shares, or any part of that amount, shall not be an allowable loss for the purposes of the Capital Gains Tax Acts until such time as the tax liability of the person under section 128 has been paid in full to the Collector-General.<\/p>\n<p>(5)The reference in subsections (4)(a) and (4A) to the relevant shares being disposed of includes a part disposal of such shares, and in the case of a part disposal, the tax to bepaid shall be determined in a manner that is just and reasonable.<\/p>\n<p>(6)Subject to any other provision of the Income Tax Acts requiring income of any description to be treated as the highest part of a person&#8217;s income, in determining for the purposes of paragraph (b) of subsection (1) what tax is chargeable on a person by virtue of section 128 in respect of an amount referred to in paragraph (a) of that subsection, that amount shall be treated as the highest part of his or her income for the relevant year.<\/p>\n<p>(7)Notwithstanding any other provision of the Income Tax Acts, the due date in relation to tax, the payment of which has been deferred by virtue of an election under this section, shall, for the purposes of section 1080, be the date when the amount becomes due and payable under subsections (4) and (4A) but notwithstanding any provisions of subsection (4A) that subsection shall have no effect as respects the payment of any tax in relation to a gain realised by the exercise on or after 6 February 2003 of a right to acquire shares.<\/p>\n<p>128B.<\/p>\n<h4>Payment of tax under section 128.<\/h4>\n<p>(1)This section applies where, by virtue of section 128, a person (in this section referred to as a &#8216;taxable person&#8217;) is chargeable to tax under Schedule E for a year of assessment on an amount equal to the gain realised by the exercise, on or after 30 June 2003 and before 1 January 2024, of a right to acquire shares (in this section referred to as &#8216;relevant shares&#8217;) in a company.<\/p>\n<p>(2)Where this section applies for a year of assessment, the taxable person shall pay an amount of tax (in this section referred to as &#8216;relevant tax&#8217;) in respect of the gain realised by the exercise of the right to acquire relevant shares, and that amount of tax shall be determined by the formula &#8211;<\/p>\n<p>A \u00d7 B<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the amount of that gain computed in accordance with section 128(4), and<\/p>\n<p>Bis the percentage which is equal to the higher rate in force for the year of assessment in which the taxable person exercises the right to acquire the relevant shares.<\/p>\n<p>(3)Relevant tax shall be due and payable to the Collector-General within 30 days after the exercise of the right to acquire the relevant shares, and shall be so due and payable without the making of an assessment, but relevant tax which has become so due and payable may be assessed on the taxable person (whether or not it has been paid when the assessment is made) if the tax or any part of it is not paid on or before the due date.<\/p>\n<p>(4)Each payment of relevant tax shall be accompanied by a return containing, in relation to the taxable person by whom the payment is made, details of the amount of the gain referred to in subsection (1) and of the relevant tax due in respect of that gain and such other particulars as may be required by the return.<\/p>\n<p>(5)Every return under this section shall be in a form prescribed or authorised by the Revenue Commissioners, and shall include a declaration to the effect that the return is correct and complete.<\/p>\n<p>(6)The Collector-General shall give the taxable person a receipt for the amount of relevant tax paid by the taxable person.<\/p>\n<p>(7)Where it appears to an officer of the Revenue Commissioners that there is any amount of relevant tax which ought to have been but has not been included in a return under subsection (4), or where such officer is dissatisfied with any such return, such officer may make an assessment on the taxable person concerned to the best of such officer&#8217;s judgement, and any amount of relevant tax due under an assessment made by virtue of this subsection shall be treated for the purposes of interest on unpaid tax as having been payable at the time specified in subsection (3).<\/p>\n<p>(8)Where any item has been incorrectly included in a return under subsection (4) as a gain in respect of which relevant tax is required to be paid, an officer of the Revenue Commissioners may make such assessments, adjustments or set-offs as may in his or her judgement be required for securing that the resulting liability to relevant tax, including interest on unpaid tax, of the taxable person is, in so far as possible, the same as it would have been if the item had not been so included.<\/p>\n<p>(9)<\/p>\n<p>(a)The provisions of the Income Tax Acts relating to &#8211;<\/p>\n<p>(i)assessments to income tax, and<\/p>\n<p>(ii)the collection and recovery of income tax,<\/p>\n<p>shall, in so far as they are applicable, apply to the assessment, collection and recovery of relevant tax.<\/p>\n<p>(b)Any amount of relevant tax payable in accordance with this section without the making of an assessment shall carry interest at the rate of 0.0219 per cent for each day or part of a day from the date when the amount becomes due and payable until payment.<\/p>\n<p>(c)Subsections (3) and (5) of section 1080 shall apply in relation to interest payable under paragraph (b) as they apply in relation to interest payable under that section.<\/p>\n<p>(d)In its application to any relevant tax charged by any assessment made in accordance with this section, section 1080 shall apply as if subsection (2)(b) of that section were deleted.<\/p>\n<p>(9A)A person aggrieved by an assessment made on that person under this section may appeal the assessment to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notification of the assessment.<\/p>\n<p>(10)Where a taxable person has paid relevant tax in respect of a gain realised by the exercise, in any year of assessment, of a right to acquire relevant shares, the taxable person may claim to have that relevant tax set against the income tax chargeable on the taxable person for that year of assessment and, where that relevant tax exceeds such income tax, to have the excess refunded to the taxable person.<\/p>\n<p>(11)Relevant tax payable by a taxable person in respect of a gain realised by the exercise, in any year of assessment, of a right to acquire relevant shares shall not be regarded as a payment of, or on account of, preliminary tax for the purposes of Chapter 7 of Part 41A.<\/p>\n<p>(12)Relevant tax payable by a taxable person in respect of a gain realised by the exercise, in any year of assessment, of a right to acquire relevant shares &#8211;<\/p>\n<p>(a)shall not, for the purpose of section 959AN(2), form part of the income tax which in the opinion of the taxable person is likely to become payable by that person for that year of assessment, and<\/p>\n<p>(b)[deleted]<\/p>\n<p>(c)shall not, for the purposes of section 959AO(3), be regarded as income tax payable by the taxable person for that year of assessment.<\/p>\n<p>(13)Notwithstanding any other provision of this section, any gain realised by the exercise, in any year of assessment, of a right to acquire relevant shares and in respect of which relevant tax is payable by a taxable person shall be included in the return required to be delivered by that person under section 959I.<\/p>\n<p>(14)Where, on an application in writing having been made to them in that behalf, the Revenue Commissioners are satisfied that an individual is likely to be chargeable to income tax for a year of assessment at the standard rate only, the reference in the meaning of B in subsection (2) to the higher rate shall be construed for the purposes of the payment or payments required to be made by the individual for that year in accordance with subsection (2), as a reference to the standard rate.<\/p>\n<p>128C.<\/p>\n<h4>Tax treatment of directors and employees who acquire convertible securities.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;chargeable amount&#8217; has the same meaning as it has in subsection (6), computed in accordance with subsection (8);<\/p>\n<p>&#8216;chargeable event&#8217; has the meaning given in subsection (7);<\/p>\n<p>&#8216;collective investment scheme&#8217; means any scheme or arrangement made for the purpose, or having the effect, of providing facilities for the participation by persons, as beneficiaries, in profits or income arising from the acquisition, holding, management or disposals of assets;<\/p>\n<p>&#8216;convertible securities&#8217; shall be construed in accordance with subsection (4);<\/p>\n<p>&#8216;director&#8217; and &#8217;employee&#8217; have the meanings respectively assigned to them by section 770(1);<\/p>\n<p>&#8216;interest&#8217;, in relation to securities, includes an interest in securities which is less than full beneficial ownership and an interest in the proceeds of the sale of them, but does not include a right to acquire securities;<\/p>\n<p>&#8216;market value&#8217; shall be construed in accordance with section 548;<\/p>\n<p>&#8216;securities&#8217; includes &#8211;<\/p>\n<p>(a)shares,<\/p>\n<p>(b)securities within the meaning of section 135,<\/p>\n<p>(c)debentures, debenture stock, loan stock, bonds, certificates of deposit, and other instruments (including certificates and warrants) creating or acknowledging indebtedness, including certificates and other instruments providing for a share in the profits of a company,<\/p>\n<p>(d)options (other than options to acquire securities, except where such options are acquired under arrangements of which the main purpose or one of the main purposes is the avoidance of income tax, corporation tax or capital gains tax) and financial and commodity futures (within the meaning of the Investment Intermediaries Act 1995),<\/p>\n<p>(e)warrants and other instruments entitling their holders to subscribe for securities,<\/p>\n<p>(f)certificates and other instruments conferring rights in respect of securities held by persons other than persons on whom the rights are conferred and the transfer of which may be effected without the consent of those persons, and<\/p>\n<p>(g)units in a collective investment scheme,<\/p>\n<p>but does not include cheques or other bills of exchange, bankers&#8217; drafts or letters of credit, statements showing balances in current, deposit or savings accounts, or leases and other dispositions of property;<\/p>\n<p>&#8216;shares&#8217; includes securities (within the meaning of section 135) and stock.<\/p>\n<p>(2)References in this section to an employee or director acquiring securities in a company as a director or employee of that company or of another company, includes references to securities acquired by any other person by reason of the director&#8217;s or employee&#8217;s office or employment, and for this purpose &#8217;employment&#8217; includes a former or prospective employment, and &#8216;office&#8217; includes a former or prospective office.<\/p>\n<p>(3)This section applies where &#8211;<\/p>\n<p>(a)an employee or director acquires securities in a company as a director or employee of that company or of another company (in this section referred to as &#8217;employment-related securities&#8217;), and<\/p>\n<p>(b)at the time of acquisition, the securities are convertible securities or an interest in convertible securities.<\/p>\n<p>(4)For the purposes of this section securities are convertible securities if &#8211;<\/p>\n<p>(a)they confer on the holder an entitlement (whether immediate or deferred and whether conditional or unconditional) to convert them &#8211;<\/p>\n<p>(i)into securities of a different description, or<\/p>\n<p>(ii)into money or money&#8217;s worth,<\/p>\n<p>or<\/p>\n<p>(b)a contract, agreement, arrangement or condition &#8211;<\/p>\n<p>(i)authorises or requires the grant of such an entitlement as is referred to in paragraph (a) to the holder if certain circumstances arise or do not arise, or<\/p>\n<p>(ii)provides for the conversion of the securities, otherwise than by the holder, into securities of a different description or into money or money&#8217;s worth.<\/p>\n<p>(5)<\/p>\n<p>(a)For the purposes of &#8211;<\/p>\n<p>(i)any charge to income tax under Schedule E and computed in accordance with section 112 or 128 on the acquisition of the employment-related securities, or<\/p>\n<p>(ii)the operation of section 122A,<\/p>\n<p>the market value of the employment-related securities shall be determined as if they were not convertible securities.<\/p>\n<p>(b)Paragraph (a) does not apply if the employment-related securities are acquired under arrangements of which the main purpose or one of the main purposes is the avoidance of income tax, corporation tax or capital gains tax, unless the market value of the employment-related securities determined in accordance with paragraph (a) is greater than that determined under paragraph (c).<\/p>\n<p>(c)Where paragraph (a) does not apply, the market value of the employment-related securities shall be determined &#8211;<\/p>\n<p>(i)in the case of securities that fall within subsection (4)(a)(i) and the entitlement to convert is not both immediate and unconditional, as if it were both immediate and unconditional,<\/p>\n<p>(ii)in the case of securities that fall within subsection (4)(b)(i), as if the circumstances are such that an entitlement to convert arises immediately,<\/p>\n<p>(iii)in the case of securities that fall within paragraph (a)(ii) or (b)(ii) of subsection (4), as if provision were made for their immediate conversion,<\/p>\n<p>and in each case, as if they were immediately and fully convertible.<\/p>\n<p>(d)For the purposes of paragraph (c) &#8216;immediately and fully convertible&#8217; means convertible immediately after the acquisition of the employment-related securities so as to obtain the maximum gain that would be possible on a conversion at such time without giving any consideration for the conversion or incurring any expenses in connection with it.<\/p>\n<p>(6)Subject to subsection (11), where, at a time when an employee or director (or any other person who acquired the employment-related securities by reason of the director&#8217;s or employee&#8217;s office or employment) has a beneficial interest in employment-related securities, a chargeable event occurs, then the employee or director shall be chargeable to income tax under Schedule E, in the year in which the chargeable event occurs, on an amount (referred to in this section as the \u2018chargeable amount&#8217;) computed in accordance with subsection (8).<\/p>\n<p>(7)A &#8216;chargeable event&#8217; means &#8211;<\/p>\n<p>(a)the conversion of the employment-related securities (or the securities in which they are an interest) into securities of a different description in circumstances in which the employee or director (or any other person who acquired the employment-related securities by reason of the director&#8217;s or employee&#8217;s office or employment) is beneficially entitled to the securities into which the employment-related securities are converted,<\/p>\n<p>(b)the release for consideration of the entitlement to convert the employment-related securities (or the securities in which they are an interest) into securities of a different description,<\/p>\n<p>(c)the disposal for consideration of the employment-related securities or any interest in them by the director or employee (or by any other person who acquired the employment-related securities by reason of the director&#8217;s or employee&#8217;s office or employment), at a time when such securities are still convertible securities, or<\/p>\n<p>(d)the receipt by the employee or director (or by any other person who acquired the employment-related securities by reason of the director&#8217;s or employee&#8217;s office or employment) of a benefit in money or money&#8217;s worth in connection with the entitlement to convert (other than securities acquired on the conversion of the employment-related securities or consideration referred to in paragraphs (b) and (c)).<\/p>\n<p>(8)<\/p>\n<p>(a)For the purposes of subsection (6), the chargeable amount is to be determined by the formula &#8211;<\/p>\n<p>A &#8211; B<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the amount of any gain realised on the occurrence of a chargeable event, and<\/p>\n<p>Bis the total of any consideration given for the entitlement to convert the employment-related securities and the amount of any expenditure incurred by the holder of the employment-related securities in connection with the conversion, disposal, release of the entitlement to convert, or receipt of a benefit in connection with the entitlement to convert the employment-related securities, as the case may be.<\/p>\n<p>(b)The amount of the gain realised on the occurrence of a chargeable event is &#8211;<\/p>\n<p>(i)in the case of an event to which subsection (7)(a) applies, to be determined by the formula &#8211;<\/p>\n<p>C &#8211; (D + E)<\/p>\n<p>where &#8211;<\/p>\n<p>Cis the market value at the time of the chargeable event of the securities into which the employment-related securities are converted and where those securities are themselves convertible, the market value is to be determined as if they were not convertible; and where the employment-related securities are an interest in securities, then C is the same proportion of that market value as the market value of the interest in the securities in which the employment-related securities are an interest bears to the market value of those securities,<\/p>\n<p>Dis the market value of the employment-related securities at the time of the chargeable event, determined as if they were not convertible securities or an interest in convertible securities, and<\/p>\n<p>Eis the amount of the consideration given for the conversion of the employment-related securities,<\/p>\n<p>(ii)in the case of a chargeable event to which subsection (7)(b) applies, the amount of the consideration received in respect of the release,<\/p>\n<p>(iii)in the case of a chargeable event to which subsection (7)(c) applies, to be determined by the formula &#8211;<\/p>\n<p>F &#8211; G<\/p>\n<p>where &#8211;<\/p>\n<p>Fis the amount of consideration given on disposal of the employment-related securities, and<\/p>\n<p>Gis the market value of the employment-related securities at the time of the chargeable event, determined as if they were not convertible securities or an interest in convertible shares,<\/p>\n<p>(iv)in the case of an event to which subsection (7)(d) applies, the amount or market value of the benefit received, as the case may be.<\/p>\n<p>(c)If, because of paragraph (b) of subsection (5), paragraph (a) of that subsection did not apply in relation to employment-related securities, the chargeable amount is to be reduced by the amount determined by the formula &#8211;<\/p>\n<p>H &#8211; I<\/p>\n<p>where &#8211;<\/p>\n<p>His the amount by which the market value of the employment-related securities for the purposes specified in paragraph (a) of subsection (5), exceeded what it would have been had that paragraph applied, and<\/p>\n<p>Iis the aggregate of any amount by which the chargeable amount on any previous chargeable event relating to the employment-related securities has been reduced under this subsection.<\/p>\n<p>(9)<\/p>\n<p>(a)For the purposes of calculating B in the formula in subsection (8)(a), consideration is to be treated as given for the entitlement to convert the employment-related securities only if the amount of any consideration given for the acquisition of the employment-related securities exceeds the market value of such securities (determined as if the employment-related securities were not convertible securities) at the time of their acquisition.<\/p>\n<p>(b)Where the consideration is in excess of the market value, the amount of such excess shall be treated as the amount of consideration given for the entitlement to convert the employment-related securities.<\/p>\n<p>(10)For the purposes of this section, any consideration given for the acquisition of employment-related securities and any consideration given for the entitlement to convert shall not be taken to include the performance of any duties in or in connection with the office or employment, and no part of the amount or value of the consideration shall be deducted more than once.<\/p>\n<p>(11)<\/p>\n<p>(a)This section does not apply in relation to employment-related securities, where &#8211;<\/p>\n<p>(i)the employment-related securities are shares in a company of a class,<\/p>\n<p>(ii)all the company&#8217;s shares of the class are convertible securities,<\/p>\n<p>(iii)all the company&#8217;s shares of the class are affected by an event similar to that which is a chargeable event in relation to the employment-related securities, and<\/p>\n<p>(iv)immediately before the event that would, but for the provisions of this subsection, be a chargeable event, the majority of the company&#8217;s shares of the class are not employment-related securities,<\/p>\n<p>or,<\/p>\n<p>(b)if, at the time of the acquisition of the employment-related securities, the emoluments from the office or employment are not within the charge to tax under Schedule E or Schedule D.<\/p>\n<p>(12)For the purposes of subsection (11)(a)(iii), shares are affected by an event similar to that which is a chargeable event in relation to employment-related securities, if &#8211;<\/p>\n<p>(a)in the case of a chargeable event to which subsection (7)(a) applies, they are converted into securities of a different class,<\/p>\n<p>(b)in the case of a chargeable event to which subsection (7)(b) applies, the entitlement to convert them into securities of a different description is released,<\/p>\n<p>(c)in the case of a chargeable event to which subsection (7)(c) applies, they are disposed of,<\/p>\n<p>(d)in the case of a chargeable event to which subsection (7)(d) applies, a similar benefit is received in respect of the entitlement to convert them.<\/p>\n<p>(13)Notwithstanding any other provision of the Tax Acts, where a person is, by virtue of this section, chargeable to tax under Schedule E for a year of assessment in respect of a chargeable amount computed in accordance with subsection (8), then he or she shall be a chargeable person for that year for the purposes of Part 41A, unless the person has been exempted by an officer of the Revenue Commissioners from the requirement of Chapter 3 of Part 41A by reason of a notice given under section 959N.<\/p>\n<p>(14)Where a person is charged to tax under this section on a chargeable amount computed in accordance with subsection (8), then section 552 shall apply as if a sum equal to the amount so charged formed part of the consideration given by the person acquiring securities for their acquisition by that person.<\/p>\n<p>(15)Where in any year &#8211;<\/p>\n<p>(a)a person awards employment-related securities to an employee or director (or to any other person by reason of the director&#8217;s or employee&#8217;s office or employment) to which this section applies, or<\/p>\n<p>(b)a chargeable event occurs in relation to employment-related securities so awarded,<\/p>\n<p>then the person shall deliver to the Revenue Commissioners in an electronic format approved by them on or before 31 March in the year following the year in which the award was made or the chargeable event occurred, as the case may be, particulars of the awards or the chargeable event, as the case may be.<\/p>\n<p>128D.<\/p>\n<h4>Tax treatment of directors of companies and employees who acquire restricted shares.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;director&#8217; and &#8217;employee&#8217; have the meanings, respectively, given to them by section 770(1);<\/p>\n<p>&#8216;EEA Agreement&#8217; means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;<\/p>\n<p>&#8216;EEA state&#8217; means a state, other than the State, which is a Contracting Party to the EEA Agreement;<\/p>\n<p>&#8217;employer&#8217; means the company in which the director or employee holds his or her office or employment;<\/p>\n<p>&#8216;market value&#8217; shall be construed in accordance with section 548;<\/p>\n<p>&#8216;restricted shares&#8217; shall be construed in accordance with subsection (3);<\/p>\n<p>&#8216;shares&#8217; includes stock;<\/p>\n<p>&#8216;specified period&#8217; has the same meaning as in subsection (3)(a);<\/p>\n<p>&#8216;trust&#8217; means a trust established in the State or in an EEA state or in the United Kingdom and the trustees of which are resident in the State or in an EEA state or in the United Kingdom.<\/p>\n<p>(2)Subject to subsection (7), this section applies where &#8211;<\/p>\n<p>(a)a director or employee acquires shares (including shares acquired on the exercise of a right to which section 128 applies) in a company as a director or employee of that company or of another company,<\/p>\n<p>(b)the shares are shares in the company in which the director or employee holds his or her office or employment or in a company which has control (within the meaning of section 432) of that company, and<\/p>\n<p>(c)at the time of acquisition, the shares are restricted shares.<\/p>\n<p>(3)For the purposes of this section, shares are restricted shares if &#8211;<\/p>\n<p>(a)there is a written contract or agreement in place under the terms of which there is a restriction on the freedom of the director or employee by whom the shares are held to assign, charge, pledge as security for a loan or other debt, transfer, or otherwise dispose of the shares for a period of not less than one year (in this section referred to as the &#8216;specified period&#8217;),<\/p>\n<p>(b)the contract or agreement is in place for bona fide commercial purposes and does not form part of a scheme or arrangement of which the main purpose or one of the main purposes is the avoidance of tax,<\/p>\n<p>(c)the shares cannot be assigned, charged, pledged as security for a loan or other debt, transferred, or otherwise disposed of in any circumstances during the specified period, other than &#8211;<\/p>\n<p>(i)on the death of the director or employee, or<\/p>\n<p>(ii)as a consequence of the director or employee agreeing to &#8211;<\/p>\n<p>(I)accept an offer for the shares (in this clause referred to as the \u2018original shares&#8217;) if the acceptance or agreement would result in a new holding (within the meaning of section 584) being equated with the original shares for the purposes of capital gains tax,<\/p>\n<p>(II)a transaction affecting the shares or such of the shares as are of a particular class if the transaction would be entered into pursuant to a compromise, arrangement or scheme applicable to or affecting all the ordinary share capital of the company in question or, as the case may be, all the shares of the same class as the shares acquired by the director or employee, or<\/p>\n<p>(III)accept an offer of cash, with or without other assets, for the shares if the offer forms part of a general offer made to holders of shares of the same class as the shares acquired by the director or employee or of shares in the same company and made in the first instance on a condition such that if it is satisfied the person making the offer will have control (within the meaning of section 432) of that company,<\/p>\n<p>and<\/p>\n<p>(d)during the specified period, the shares are held in a trust established by the employer for the benefit of employees and directors, or held under such other arrangements as the Revenue Commissioners may allow.<\/p>\n<p>(4)Where this section applies &#8211;<\/p>\n<p>(a)any amount chargeable to income tax under Schedule E (and computed in accordance with section 112 or 128, as the case may be), or under Schedule D, on the acquisition of the shares, shall be reduced by an amount determined by the formula &#8211;<\/p>\n<p>&nbsp;<\/p>\n<p>where &#8211;<\/p>\n<p>Ais the amount of the income chargeable to tax under Schedule E or Schedule D, as the case may be, and<\/p>\n<p>Bis &#8211;<\/p>\n<p>(i)where the specified period is one year, 10,<\/p>\n<p>(ii)where the specified period is 2 years, 20,<\/p>\n<p>(iii)where the specified period is 3 years, 30,<\/p>\n<p>(iv)where the specified period is 4 years, 40,<\/p>\n<p>(v)where the specified period is 5 years, 50,<\/p>\n<p>(vi)where the specified period is more than 5 years, 60,<\/p>\n<p>(b)the amount chargeable to income tax referred to in paragraph (a) shall be computed by reference to the market value of the shares at the date of acquisition but without regard to the restriction on the freedom of the director or employee by whom the shares are held to assign, charge, pledge as security for a loan or other debt, transfer, or otherwise dispose of the shares.<\/p>\n<p>(5)Where an amount chargeable to income tax under Schedule E or Schedule D on the acquisition of shares by a director or employee is reduced in accordance with subsection (4), and &#8211;<\/p>\n<p>(a)the restriction on the freedom of the director or employee to assign, charge, pledge as security for a loan or other debt, transfer, or otherwise dispose of the shares acquired by him or her is subsequently removed or varied, or<\/p>\n<p>(b)the shares are disposed of in any of the circumstances mentioned in subparagraphs (i) and (ii) of subsection (3)(c) before the specified period expires,<\/p>\n<p>then, notwithstanding any limitation in the Income Tax Acts on the time within which assessments may be made, the amount chargeable to income tax on the acquisition of the shares shall be adjusted to take account of the actual period during which there was a restriction on the freedom of the director or employee to assign, charge, pledge as security for a loan or other debt, transfer or otherwise dispose of the shares. The adjustment of liability to tax as may be necessary for the purposes of this subsection shall be made at any time, whether by means of an assessment, an amended assessment or otherwise.<\/p>\n<p>(6)Where this section applies and an amount chargeable to income tax on the acquisition of shares by a director or employee is, for the purposes of section 552, to be treated as forming part of the consideration given by the director or employee for the acquisition of the shares, then the amount chargeable to income tax to be so treated shall be the amount as reduced in accordance with subsection (4), together with any additional amount charged as a consequence of an adjustment made in accordance with subsection (5).<\/p>\n<p>(7)This section does not apply to shares acquired by a director or employee under the terms of a scheme approved of by the Revenue Commissioners under Schedule 11, 12, 12A or 12C.<\/p>\n<p>(8)Where in any year &#8211;<\/p>\n<p>(a)a person awards restricted shares to a director or employee, or<\/p>\n<p>(b)an event that comes within paragraph (a) or (b) of subsection (5) occurs in relation to restricted shares awarded,<\/p>\n<p>then the person shall deliver to the Revenue Commissioners in an electronic format approved by them on or before 31 March in the year of assessment following the year in which the award was made or the event occurred, as the case may be, particulars of the award or the event, as the case may be.<\/p>\n<p>(9)For the purposes of subsection (8), a person shall be deemed to award restricted shares to a director or employee where the director or employee acquires the restricted shares on the exercise of a right to which section 128 applies, and the right was granted to the director or employee by the person.<\/p>\n<p>128E.<\/p>\n<h4>Tax treatment of directors of companies and employees who acquire forfeitable shares.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;director&#8217; and &#8217;employee&#8217; have the meanings, respectively, given to them by section 770(1);<\/p>\n<p>&#8216;market value&#8217; shall be construed in accordance with section 548;<\/p>\n<p>&#8216;forfeitable shares&#8217; shall be construed in accordance with subsection (3);<\/p>\n<p>&#8216;shares&#8217; includes stock.<\/p>\n<p>(2)This section applies where &#8211;<\/p>\n<p>(a)a director or employee acquires shares (including shares acquired on the exercise of a right to which section 128 applies) in a company as a director or employee of that company or of another company, and<\/p>\n<p>(b)at the time of acquisition, the shares are forfeitable shares.<\/p>\n<p>(3)Subject to subsection (4), for the purposes of this section, shares are forfeitable shares if &#8211;<\/p>\n<p>(a)there is a written contract or agreement in place under the terms of which &#8211;<\/p>\n<p>(i)there will be a forfeiture of the shares, if certain circumstances arise or do not arise,<\/p>\n<p>(ii)as a result of the forfeiture, the director or employee will cease to have any beneficial interest in the shares, and<\/p>\n<p>(iii)the director or employee will not be entitled to receive, directly or indirectly, consideration in money or money&#8217;s worth in respect of the shares on their forfeiture in excess of the consideration given by the director or the employee for the acquisition of the shares,<\/p>\n<p>and,<\/p>\n<p>(b)the contract or agreement is in place for bona fide commercial purposes and does not form part of a scheme or arrangement of which the main purpose or one of the main purposes is the avoidance of tax.<\/p>\n<p>(4)Shares shall not be forfeitable shares by reason only that the shares are unpaid or partly paid shares which may be forfeited for non-payment of calls.<\/p>\n<p>(5)Where this section applies, any charge to income tax under Schedule E (and computed in accordance with section 112 or 128, as the case may be), or under Schedule D, on the acquisition of the shares, shall be computed by reference to the market value of the shares at the date of acquisition but without regard to provision in a contract or agreement referred to in subsection (3) for the forfeiture of the shares.<\/p>\n<p>(6)If under the terms of a contract or agreement referred to in subsection (3) the shares are forfeited, then &#8211;<\/p>\n<p>(a)the director or employee shall, for the purposes of income tax, income levy and universal social charge, be treated, for the year of assessment in which the shares were acquired, as if he or she did not acquire the shares, and<\/p>\n<p>(b)such adjustment shall be made by repayment or otherwise as the case may require, on receipt of a claim from the director or employee, which shall be made within 4 years from the end of the year of assessment in which the shares are forfeited.<\/p>\n<p>(7)Subsection (6) applies notwithstanding any limitation in section 865(4) on the time within which a claim for a repayment of tax is required to be made. Section 865(6) does not prevent the Revenue Commissioners from repaying an amount of tax as a consequence of any adjustment made in accordance with subsection (6).<\/p>\n<p>(8)Notwithstanding section 546(2), where subsection (6) of this section applies, the amount of a loss accruing on the forfeiture of the shares shall not exceed the amount of consideration given by the director or employee for the acquisition of the shares less any amount received by the director or employee on the forfeiture of the shares.<\/p>\n<p>(9)Where in any year &#8211;<\/p>\n<p>(a)a person awards forfeitable shares to a director or employee, or<\/p>\n<p>(b)shares awarded to a director or employee are forfeited,<\/p>\n<p>then the person shall deliver to the Revenue Commissioners in an electronic format approved by them on or before 31 March in the year of assessment following the year in which the award was made or the shares were forfeited, as the case may be, particulars of the award or the forfeiture, as the case may be.<\/p>\n<p>128F.<\/p>\n<h4>Key Employee Engagement Programme.<\/h4>\n<p>(1)In this section &#8211;<\/p>\n<p>&#8216;connected persons&#8217; shall be construed in accordance with section 10;<\/p>\n<p>&#8216;control&#8217; shall be construed in accordance with section 432;<\/p>\n<p>&#8216;EEA Agreement&#8217; means the Agreement on the European Economic Area signed at Oporto on 2 May 1992, as adjusted by all subsequent amendments to that Agreement;<\/p>\n<p>&#8216;EEA state&#8217; means a state which is a contracting party to the EEA Agreement;<\/p>\n<p>&#8217;emoluments&#8217; has the same meaning as in section 983;<\/p>\n<p>&#8216;excluded activities&#8217; means &#8211;<\/p>\n<p>(a)adventures or concerns in the nature of trade,<\/p>\n<p>(b)dealing in commodities or futures in shares, securities or other financial assets,<\/p>\n<p>(c)financial activities,<\/p>\n<p>(d)professional services companies,<\/p>\n<p>(e)dealing in or developing land,<\/p>\n<p>(f)building and construction,<\/p>\n<p>(g)forestry, and<\/p>\n<p>(h)operations carried out in the coal industry or in the steel and shipbuilding sectors;<\/p>\n<p>&#8216;financial activities&#8217; has the same meaning as in section 489;<\/p>\n<p>&#8216;market value&#8217; shall be construed in accordance with section 548;<\/p>\n<p>&#8216;option price&#8217; means a predetermined price at which an employee or director can purchase a share at some time in the future;<\/p>\n<p>&#8216;ordinary shares&#8217; means shares forming part of a company&#8217;s ordinary share capital;<\/p>\n<p>&#8216;professional services&#8217; means &#8211;<\/p>\n<p>(a)services of a medical, dental, optical, aural or veterinary nature,<\/p>\n<p>(b)services of an architectural, quantity surveying or surveying nature, and related services,<\/p>\n<p>(c)services of accountancy, auditing, taxation or finance,<\/p>\n<p>(d)services of a solicitor or barrister and other legal services, and<\/p>\n<p>(e)geological services;<\/p>\n<p>&#8216;qualifying company&#8217; means, subject to subsection (10), a company that &#8211;<\/p>\n<p>(a)is incorporated in the State, or in an EEA state other than the State or in the United Kingdom, and is resident in the State, or is resident in an EEA state other than the State or in the United Kingdom and carries on business in the State through a branch or agency,<\/p>\n<p>(b)exists wholly or mainly for the purpose of carrying on a qualifying trade on a commercial basis with a view to the realisation of profit, the profits or gains of which are charged to tax under Case I of Schedule D,<\/p>\n<p>(c)throughout the entirety of any relevant period &#8211;<\/p>\n<p>(i)is an unquoted company none of whose shares, stock or debentures are listed in the official list of a stock exchange, or quoted on an unlisted securities market of a stock exchange other than &#8211;<\/p>\n<p>(I)on the market known as the Euronext Growth market operated by the Irish Stock Exchange plc trading as Euronext Dublin, or<\/p>\n<p>(II)on any similar or corresponding market of the stock exchange &#8211;<\/p>\n<p>(A)in a territory other than the State with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or<\/p>\n<p>(B)in an EEA state other than the State or in the United Kingdom,<\/p>\n<p>and<\/p>\n<p>(ii)is not regarded as a company in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty ,<\/p>\n<p>and<\/p>\n<p>(d)at the date of grant of the qualifying share option &#8211;<\/p>\n<p>(i)is a micro, small or medium sized enterprise within the meaning of the Annex to Commission Recommendation 2003\/361\/EC of 6 May 2003 concerning the definition of micro, small and medium sized enterprises, and<\/p>\n<p>(ii)the total market value of the issued but unexercised qualifying share options of the company does not exceed \u20ac6,000,000;<\/p>\n<p>&#8216;qualifying individual&#8217; , in relation to a qualifying share option, means an individual who throughout the entirety of the relevant period is &#8211;<\/p>\n<p>(a)in the case of a qualifying group, an employee or director of a qualifying company within the group, and who is required to work at least 20 hours per week for such a qualifying company or to devote not less than 75 per cent of his or her working time to such a qualifying company, and<\/p>\n<p>(b)in the case of a qualifying company not being a member of a qualifying group, an employee or director of the qualifying company, and who is required to work at least 20 hours per week for the qualifying company or to devote not less than 75 per cent of his or her working time to the qualifying company;<\/p>\n<p>&#8216;qualifying share option&#8217;, means a right granted to an employee or director of a qualifying company to purchase a predetermined number of shares in the qualifying company or, in the case of a qualifying group, in the qualifying holding company of the qualifying group, at a predetermined price, by reason of the individual&#8217;s employment or office in the qualifying company, where &#8211;<\/p>\n<p>(a)the shares which may be acquired by the exercise of the share option are ordinary fully paid up shares in the qualifying company or, in the case of a qualifying group, in the qualifying holding company,<\/p>\n<p>(b)the option price at date of grant is not less than the market value of the same class of shares at that time,<\/p>\n<p>(c)there is a written contract or agreement in place specifying &#8211;<\/p>\n<p>(i)the number and description of the shares which may be acquired by the exercise of the share option,<\/p>\n<p>(ii)the option price, and<\/p>\n<p>(iii)the period during which the share options may be exercised,<\/p>\n<p>(d)the total market value of all shares, in respect of which qualifying share options have been granted in the qualifying company or, in the qualifying holding company, to an employee or director does not exceed &#8211;<\/p>\n<p>(i)\u20ac100,000 in any year of assessment,<\/p>\n<p>(ii)\u20ac300,000 in all years of assessment, or<\/p>\n<p>(iii)the amount of annual emoluments of the qualifying individual in the year of assessment in which the qualifying share option is granted,<\/p>\n<p>(e)the share option is exercised by the qualifying individual in the relevant period,<\/p>\n<p>(f)the shares are in a qualifying company or, in the case of a qualifying group, in the qualifying holding company, and<\/p>\n<p>(g)the share option cannot be exercised more than 10 years from the date of grant of that option;<\/p>\n<p>&#8216;qualifying trade&#8217; means trading activities other than excluded activities;<\/p>\n<p>&#8216;qualifying group&#8217; means, subject to subsection (2A), a group of companies that consists of the following (and no other companies):<\/p>\n<p>(a)a qualifying holding company;<\/p>\n<p>(b)its qualifying subsidiary or subsidiaries;<\/p>\n<p>(c)as the case may be, its relevant subsidiary or subsidiaries;<\/p>\n<p>&#8216;qualifying holding company&#8217; means a company &#8211;<\/p>\n<p>(a)which is not controlled either directly or indirectly by another company,<\/p>\n<p>(b)which does not carry on a trade or trades, and<\/p>\n<p>(c)whose business consists wholly or mainly of the holding of shares only in the following (and no other companies), namely, its qualifying subsidiary or subsidiaries and where it has a relevant subsidiary or subsidiaries, in that subsidiary or in each of them;<\/p>\n<p>&#8216;qualifying subsidiary&#8217;, in relation to a qualifying holding company, means a company in respect of which more than 50 per cent of its ordinary share capital is owned directly by the qualifying holding company;<\/p>\n<p>&#8216;relevant period&#8217; means a period of not less than 12 months beginning on the date a qualifying share option is granted to an employee or director of the qualifying company and ending on the date the share option is exercised by the qualifying individual;<\/p>\n<p>&#8216;relevant subsidiary&#8217;, in relation to the qualifying holding company, means a company in respect of which more than 50 per cent of its ordinary share capital is owned indirectly by the qualifying holding company, but for the purposes of this section a relevant subsidiary in relation to a qualifying holding company shall not be regarded as a qualifying company.<\/p>\n<p>(2)For the purposes of this section &#8211;<\/p>\n<p>(a)an individual shall not be a qualifying individual if his or her employment or office is not capable of lasting at least 12 months from the date on which the qualifying share option is granted,<\/p>\n<p>(b)an individual shall cease to be a qualifying individual if he or she, together with any connected persons, acquire beneficial ownership of, or the ability to control, directly or indirectly, or through the medium of a connected company or connected companies or by any other indirect means, more than 15 per cent of the ordinary share capital of the qualifying company or, in the case of a qualifying group, of the qualifying holding company, and<\/p>\n<p>(c)where a qualifying individual is permitted to exercise a qualifying share option despite having ceased to be an employee or director of a qualifying company, the individual shall be deemed to satisfy the requirements as set out in the definition of &#8216;qualifying individual&#8217; in subsection (1) in respect of the period the individual is not employed by a qualifying company, where the individual exercises the option within 90 days of the individual ceasing to hold the employment or office concerned with the qualifying company.<\/p>\n<p>(2A)For the purposes of this section, a group of companies shall be treated as a qualifying group only where &#8211;<\/p>\n<p>(a)throughout the entirety of the relevant period &#8211;<\/p>\n<p>(i)there is at least one qualifying company in the group which is a qualifying subsidiary,<\/p>\n<p>(ii)the activities of the qualifying group, excluding the qualifying holding company, consist wholly or mainly of the carrying on of a qualifying trade,<\/p>\n<p>(iii)each company in the qualifying group is an unquoted company none of whose shares, stock or debentures are listed on the official list of a stock exchange, or quoted on an unlisted securities market of a stock exchange, other than on &#8211;<\/p>\n<p>(I)the market known as the Euronext Growth market operated by the Irish Stock Exchange plc trading as Euronext Dublin, or<\/p>\n<p>(II)any similar or corresponding market of the stock exchange in &#8211;<\/p>\n<p>(A)a territory, other than the State, with the government of which arrangements having the force of law by virtue of section 826(1) have been made, or<\/p>\n<p>(B)an EEA state other than the State,<\/p>\n<p>and<\/p>\n<p>(iv)each company in the qualifying group is not regarded as a company in difficulty for the purposes of the Commission Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty ,<\/p>\n<p>and<\/p>\n<p>(b)at the date of grant of the qualifying share option &#8211;<\/p>\n<p>(i)the qualifying group is a micro, small or medium-sized enterprise within the meaning of the Annex to Commission Recommendation 2003\/361\/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises, and<\/p>\n<p>(ii)the total market value of the issued, but unexercised, qualifying share options of the qualifying holding company does not exceed \u20ac6,000,000.<\/p>\n<p>(3)Any gain realised on the exercise of a qualifying share option granted on or after 1 January 2018 and before 1 January 2026 shall be exempt from income tax and shall not be reckoned in computing income for the purposes of the Income Tax Acts.<\/p>\n<p>(4)[deleted]<\/p>\n<p>(5)A period of less than 12 months shall be deemed to be a relevant period where, following the grant of a share option, during that period &#8211;<\/p>\n<p>(a)a transaction is entered into pursuant to a compromise, arrangement or scheme applicable to or affecting all the ordinary share capital of the qualifying company or, in the case of a qualifying group, of the qualifying holding company,<\/p>\n<p>(b)a transaction takes place that forms part of a general offer made to holders of shares of the same class as the shares acquired by the director or employee or of shares in the same company or, in the case of a qualifying group, in the qualifying holding company and made in the first instance on a condition such that if it is satisfied the person making the offer will have control of that company or, in the case of a qualifying group, in the qualifying holding company, or<\/p>\n<p>(c)the qualifying company allows an issued but unexercised qualifying share option to transfer to an individual&#8217;s estate on their death, where &#8211;<\/p>\n<p>(i)the qualifying share option is exercised within 12 months of the individual&#8217;s death,<\/p>\n<p>(ii)the deceased would have satisfied the requirements set out in the definition of &#8216;qualifying individual&#8217; in subsection (1) up to the date of his or her death, and<\/p>\n<p>(iii)throughout the relevant period, the company is a qualifying company or, in the case of a qualifying group, the holding company is a qualifying holding company.<\/p>\n<p>(6)Notwithstanding section 547(1)(a), the qualifying individual shall be deemed for the purposes of the Capital Gains Tax Acts to have acquired the shares, acquired by the exercise of the qualifying share option, for a consideration equal to the amount paid for their acquisition.<\/p>\n<p>(6A)Where &#8211;<\/p>\n<p>(a)shares in a company are acquired on foot of a qualifying share option granted on or after 1 January 2018 and before 1 January 2026,<\/p>\n<p>(b)those shares are subsequently redeemed, repaid or purchased by the company, and<\/p>\n<p>(c)subsection (1) of section 176 would apply in respect of the payment made by the company on the redemption, repayment or purchase of those shares, but for paragraph (a)(i)(I) of that subsection not being satisfied,<\/p>\n<p>subsection (1) of section 176 shall be deemed to apply in respect of the payment, notwithstanding that paragraph (a)(i)(I) of that subsection is not satisfied.<\/p>\n<p>(7)Where in any year of assessment a qualifying company grants a qualifying share option under this section, allots any shares or transfers any asset in pursuance of such a right, or gives any consideration for the assignment or release in whole or in part of such a right, or receives notice of the assignment of such a right, the qualifying company shall deliver particulars thereof to the Revenue Commissioners, in a format approved by them, not later than 31 March in the year of assessment following that year.<\/p>\n<p>(7A)Where in any year of assessment a company within a qualifying group grants a qualifying share option under this section, allots any shares or transfers any asset in pursuance of such a right, or gives any consideration for the assignment or release in whole or in part of such a right, or receives notice of the assignment of such a right, a qualifying company designated by the qualifying group shall deliver particulars thereof on behalf of the qualifying group to the Revenue Commissioners, in a format approved by them, not later than 31 March in the year of assessment following that year.<\/p>\n<p>(8)The Revenue Commissioners may publish the following information in relation to all qualifying companies, or, as the case may be, qualifying groups:<\/p>\n<p>(a)the name of the company or, in the case of a qualifying group, of each member of it (and a subsequent reference in this subsection to a &#8216;company&#8217; shall, as appropriate, in the case of a qualifying group be construed as including a reference to each such member);<\/p>\n<p>(b)the address of the company;<\/p>\n<p>(c)the Companies Registration Office number of the company;<\/p>\n<p>(d)the date of exercise of the qualifying share options;<\/p>\n<p>(e)the amount of the tax advantage granted under this section;<\/p>\n<p>(f)in respect of the principal activity carried on by the company, the NACE classification code, as determined in accordance with Regulation (EC) No. 1893\/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No. 3037\/90 as well as certain EC Regulations on specific statistical domains;<\/p>\n<p>(g)the territorial unit, within the meaning of the NUTS Level 2 classification specified in Annex 1 to Regulation (EC) No. 1059\/2003 of the European Parliament and of the Council of 26 May 2003 amended by Regulation (EC) No. 1888\/2005 of the European Parliament and of the Council of 26 October 2005 , Commission Regulation (EC) No. 105\/2007 of 1 February 2007 , Regulation (EC) No. 176\/2008 of the European Parliament and of the Council of 20 February 2008 , Regulation (EC) No. 1137\/2008 of the European Parliament and of the Council of 22 October 2008 , Commission Regulation (EU) No. 31\/2011 of 17 January 2011, Council Regulation (EU) No. 517\/2013 of 13 May 2013 , Commission Regulation (EU) No. 1319\/2013 of 9 December 2013 , Commission Regulation (EU) No. 868\/2014 of 8 August 2014 and Commission Regulation (EU) No. 2066\/2016 of 21 November 2016 , in which the company is located.<\/p>\n<p>(9)No obligation as to secrecy imposed by section 851A shall preclude the Revenue Commissioners from publishing information obtained by them under this section.<\/p>\n<p>(10)A company or group shall not be regarded as a qualifying company or, as the case may be, a qualifying group for the purposes of this section where the company, or in the case of a qualifying group, the company designated for the purposes of subsection (7A), fails to comply with subsection (7) or (7A), as the case may be.<\/p>\n<p>(11)This section shall not apply unless the qualifying share option is granted for bona fide commercial reasons, the main purpose of which is to recruit or retain employees in a qualifying company and is not part of a scheme or arrangement the main purpose, or one of the main purposes, of which is the avoidance of tax.<\/p>\n<p>(12)Where this section applies relief under Part 16 shall not apply.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-11180\" data-postid=\"11180\" class=\"themify_builder_content themify_builder_content-11180 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>General Expenses paid, which are not the reimbursement of deductible expenses are taxable under Schedule E. Payments that are a reimbursement of actual deductible expenses are not taxable. Where payments are received on account of expenses, they may be deductible, provided that they were incurred in carrying out of the employment. Vouchers and proof should [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[333],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11180"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=11180"}],"version-history":[{"count":8,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11180\/revisions"}],"predecessor-version":[{"id":34677,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11180\/revisions\/34677"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=11180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=11180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=11180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}