Payment of compensation arising from an unfair dismissals case is treated as a payment chargeable under section 123, with appropriate reliefs. Note: The award was not in respect of actual salary, which would be chargeable under section 112. IT 97 1507
Whether the item included in the severance agreement and described as “Damages” is liable to tax. A payment made in consideration or in consequence of, or otherwise in connection with the termination of an employment – however described – is chargeable to tax under section 123 TCA 1997, unless it is otherwise chargeable to tax. IT 97 1533
