Revenue Note for Guidance
Section 985E enables the Revenue Commissioners to issue a direction that any payment made by a third party to an employer, for the work done for the third party by employees of the employer, is to be paid under deduction of tax if it is likely that the employer will not operate PAYE in respect of emoluments paid to the employees.
(1) The section applies where it appears to the Revenue Commissioners that—
(2) Where this section applies, the Revenue Commissioners may give a direction that if—
income tax is to be deducted in accordance with this section by the relevant person on making that payment.
(3) A direction—
(4) The Revenue Commissioners are to take such steps as are reasonably practicable to ensure that the contractor is supplied with a copy of any notice given which relates to the contractor.
(5) Where a direction has effect and any employees of the contractor specified in the direction work for, but not as employees of, the relevant person so specified, income tax is to be deducted under PAYE by the relevant person on making any payment in respect of that work as if so much of the payment as is attributable to work done by each employee were a payment of emoluments.
Relevant Date: Finance Act 2019