We have been engaging with Revenue and the Department of Social Protection on the PRSI charge on the deemed receipt of income following the release of a debt. At a recent meeting of the TALC committee we were informed that the PRSI charge is likely to be dealt with by way of Regulations, but these are not imminent.

We were expecting legislation dealing with the PRSI charge to be included in the Social Welfare Bill 2015. Disappointingly the matter will be dealt with by Regulations. There is no clear time frame for the Regulations.

We understand from members that Revenue Online Service (ROS) is applying a PRSI charge to the deemed income. Revenue advised us that ROS is correctly applying the law and cannot be amended until such time that there is a change in legislation.

Revenue published a Tax Instruction which is included in Part 4 of their Tax and Duty Manual and deals with section 87B TCA 1997 and includes examples illustrating the application of the provision. Section 87B provides that the release of a debt, in certain circumstances, is to be treated as a receipt of income.

We continue to engage with Revenue and the Department of Social Protection on this matter and we will report of any updates on this matter in tax.point.