PART 8 Special Provisions where Employees are in Receipt of or are Entitled to Receive Certain Benefits Payable Under the Social Welfare Acts

Source

Income tax regulations 2001 part 8.

43 Interpretation (Part 8)

In this Part of these Regulations—

“relevant period” in relation to an employee who is absent from work and who in respect of any part of that absence receives, or is entitled to receive, a taxable benefit, means the period commencing with the date on which such taxable benefit first becomes payable to the employee and ending on the earliest of the following dates, that is to say:

(a) the date of cessation of employment,

(b) the 31 December following the employee’s return to work, or

(c) such other date as the inspector may specify;

“taxable benefit”, in relation to an employee, means any amount payable under the Social Welfare Acts in respect of—

(a) disability benefit, and

(b) injury benefit which is comprised in occupational injuries benefit,

which is chargeable to income tax by virtue of section 126 of the Act.

44 Tax due in respect of disability or injury benefit 

Where, in respect of an absence from work, an employee receives or is entitled to receive a taxable benefit the following provisions shall, notwithstanding any other provision of these Regulations and unless the inspector otherwise directs, apply, that is to say:

(a) any payment of emoluments made by the employer to the employee in the relevant period shall be treated as if it were a payment to which Regulation 19 applies,

(b) (i) where the employee is entitled to receive payment of emoluments during such absence from work, the employer shall, in relation to such payments made by him or her to the employee during the relevant period, reduce the tax credits and standard rate cut-off point for Week 1 or Month 1, as may be appropriate, as specified on the tax deduction card held by the employer in respect of the employee by—

(A) such amount as the Revenue Commissioners, by general notice or otherwise, direct, or

(B) such other amount as the Minister for Social, Community and Family Affairs may notify to the employer in relation to the employee, and

(ii) the reduction of the employee’s tax credits and standard rate cut-off point in accordance with the provisions of subparagraph (i) shall be treated as if it were a determination or, as the case may be, an amended determination of tax credits and standard rate cut-off point by the inspector but the inspector need not issue a notice of the determination or the amended determination, as may be appropriate, to the employee or a certificate of tax credits and standard rate cut-off point, an amended certificate of tax credits and standard rate cut-off point, a tax deduction card or an amended tax deduction card, as may be appropriate, to the employer,

and

(c) where, on any usual pay day during the period of absence from work which falls within the relevant period, the employee is not entitled to receive payment of emoluments from the employer, the provisions of Regulation 26 shall not apply in respect of such pay day.