A recent edition of Revenue's Tax Briefing Issue 06 of 2011 insists that fees paid to directors of Irish Companies cannot be paid gross in any circumstances.Tax Briefing Issue 06 of 2011 restates the long established principle that the Schedule E charge applies in respect of remuneration derived from the having or exercising a public office of director of an Irish incorporated company, irrespective of where the holder is tax resident or the duties are exercised. Therefore such income is within the scope of the PAYE and USC systems.

Where remuneration arising to a director is mandated to a third party, it does not fall outside the scope of the directors charge to Irish tax under Schedule E. Therefore it is not outside the scope of the PAYE and USC systems.

In the briefing document a number of other matters are covered and these include:

• Distinction of Roles
• Tenure of directorship contingent on payments to third parties
• Directors’ remuneration by way of entitlement to shares
• Directors’ remuneration by way of provision of benefits-in-kind
• Payment of expenses
• Directors’ remuneration received by partners of certain partnerships

The full text of Tax Briefing Issue 06 is reproduced on here.