Finance (Local Property Tax) Act 2012 section 76

Under-deduction of local property tax by employer

Section 76 deals with the situation where an employer fails to deduct the full amount of local property tax from an employee's pay within the period specified in a Revenue direction.

• Where an employer has been directed by Revenue to deduct LPT from an employee's pay, the full amount must be deducted within the specified period.
• If the employer fails to deduct the full amount by the deadline, Revenue may carry forward the shortfall into a new direction for a subsequent period.
• Alternatively, Revenue may agree a different method of payment directly with the liable person to recover the outstanding amount.
• The provision ensures that any under-deduction does not result in a permanent loss of LPT, by providing Revenue with flexible recovery options.