Taxes Consolidation Act 1997 Schedule 1, paragraph 3

Unpaid employers' PAYE

Schedule 1, paragraph 3 provides that the collection procedures in paragraph 2 do not apply to income tax on emoluments from an office or employment connected with exploration or exploitation activities referred to in section 13(5).

• Paragraph 2 collection powers are disapplied for income tax on emoluments from offices or employments covered by section 13(5).
• Section 13(5) relates to emoluments arising from exploration or exploitation activities carried on in a designated area (typically offshore oil and gas operations).
• The rationale is that a local paying agent will be responsible for paying wages in these cases, and Revenue should pursue the agent for any tax due.
• Revenue may not require the licence holder to pay unpaid employers' PAYE owed by the exploration company in respect of employees working on offshore activities.