Revenue has published instructions and examples illustrating the operation of section 87B of the Taxes Consolidation Act 1997. Section 87B makes provision for the release of a debt, in certain circumstances, to be treated as a receipt of income and, consequently, chargeable to tax. Chartered Accountants Ireland continues to engage with Revenue and the Department of Social Protection on the PRSI charge on the deemed receipt of income under section 87B.

The instruction, which is included in Part 4 of the Revenue Tax & Duty Manual, also sets out the time at which the debt release is deemed to have taken place, including the circumstances of bankruptcy and personal insolvency.

Chartered Accountants Ireland's submission to the Department of Social Protection on the PRSI charge arising on the deemed receipt of income under section 87B is published on our website.