Collector-General's Requirement for Security Bonds - Section 960S TCA 1997

Section 126 Finance Act 2012 inserted Section 960S in the Taxes Consolidation Act 1997, which provides that the Collector-General may require a taxpayer to provide security for taxes which may become due in the future where-

• Revenue has concerns that certain fiduciary taxes (PAYE (Income Tax, PRSI and USC), VAT, Relevant Contracts Tax, Local Property Tax Deducted at Source), will not be paid, and/or
• Such taxes are not paid within 30 days of the due date.

This provision allows the Collector-General to seek a Bond from businesses where there are concerns that future taxes payable may not be forthcoming. This particularly relates to sole traders who cease to trade leaving substantial Revenue debts and seek to re-commence trading at a later date. The likelihood of future revenues being at risk will be established based on the business’ compliance history and case-working outcomes together with any other relevant information available on the case.

The relevant guidelines are contained in the Tax and Duty Manual 'Collector-General's Requirement for Security Bonds - Section 960S TCA 1997' available on Revenue's website.

02 October 2014