Taxes Consolidation Act, 1997 (Number 39 of 1997)
PART 5
Principal Provisions Relating to the Schedule E Charge
CHAPTER 1
Basis of assessment, persons chargeable and extent of charge
112 Basis of assessment, persons chargeable and extent of charge.
[ITA67 s110; FA90 s19(a); FA91 s6]
(1) Income tax under Schedule E [1]>shall be charged annually<[1][1]>shall be charged for each year of assessment<[1] on every person having or exercising an office or employment of profit mentioned in that Schedule, or to whom any annuity, pension or stipend chargeable under that Schedule is payable, in respect of all salaries, fees, wages, perquisites or profits whatever therefrom, and shall be computed on the amount of all such salaries, fees, wages, perquisites or profits whatever therefrom for the year of assessment.
(2) (a) [2]>In this subsection<[2][2]>In this section<[2], “emoluments” means anything assessable to income tax under Schedule E.
(b) Where apart from this subsection emoluments from an office or employment would be for a year of assessment in which a person does not hold the office or employment, the following provisions shall apply for the purposes of subsection (1):
(i) if in the year concerned the office or employment has never been held, the emoluments shall be treated as emoluments for the first year of assessment in which the office or employment is held, and
(ii) if in the year concerned the office or employment is no longer held, the emoluments shall be treated as emoluments for the last year of assessment in which the office or employment was held.
[3]>
(3) Notwithstanding subsection (1) and subject to subsections (4) and (6), the income tax under Schedule E to be charged for the year of assessment 2018 and subsequent years of assessment in respect of emoluments to which Chapter 4 of Part 42 applies or is applied shall be computed on the amount of the emoluments paid to the person in the year of assessment.
(4)Where emoluments chargeable under Schedule E arise in the year of assessment 2017, and those emoluments are also chargeable to income tax in accordance with subsection (3) for the year of assessment 2018 or a subsequent year of assessment, the amount of the emoluments chargeable to income tax for the year of assessment 2017 shall, on a claim being made by the person so chargeable, be reduced to the amount of emoluments that would have been charged to income tax had subsection (3) applied for that year of assessment.
(5)Where a person dies and emoluments are due to be paid to that deceased person, the payment of such emoluments shall be deemed to have been made to the deceased person immediately prior to death.
(6) (a) In this subsection, “proprietary director” has the same meaning as it has in section 472.
(b) Subsection (3) shall not apply to——
(i)emoluments paid directly or indirectly by a body corporate (or by any person who is connected (within the meaning of section 10) with the body corporate) to a proprietary director of the body corporate, or
(ii)emoluments in respect of which a notification has issued under section 984(1).
<[3]
[2]
Substituted by FA17 sched1(1)(a). Applies for the year of assessment 2018 and each subsequent year of assessment in respect of emoluments paid on or after 1 January 2018.
[3]
Inserted by FA17 sched1(1)(b). Applies for the year of assessment 2018 and each subsequent year of assessment in respect of emoluments paid on or after 1 January 2018.