Taxes Consolidation Act 1997 Schedule 2 paragraph 26

Assessable person

Schedule 2, paragraph 26 provides that where a paying agent is relieved from deducting income tax from interest, dividends or other annual payments, the tax becomes assessable on and payable by the recipient under Schedule D.

• Where Revenue relieves a paying agent from withholding income tax, the tax obligation transfers to the recipient of the payment.
• The recipient becomes assessable and chargeable under the appropriate Case of Schedule D.
• This applies to interest, dividends and other annual payments.
• The effect is that the income is taxed directly in the hands of the person entitled to receive it, rather than being collected at source.