Finance (Local Property Tax) Act 2012 section 78

Deduction from net emoluments of certain company directors

Section 78 deals with how local property tax deducted from the pay of company directors with a material interest in the company is treated where the company fails to remit that tax to Revenue.

• Directors with a material interest in a company may have LPT deducted from their net emoluments at source.
• If the company fails to remit the deducted LPT to Revenue, the director does not receive credit for it against their LPT liability.
• This mirrors the existing income tax rule under section 997A of the Taxes Consolidation Act 1997, applied with appropriate modifications for LPT purposes.
• The relevant LPT liability may arise from a Revenue estimate, a self-assessment, or a Revenue assessment under Part 8 of the Act.