Taxes Consolidation Act 1997 section 1001

Section 1001 makes the holder of a fixed charge on the book debts of a company liable to pay any PAYE, PRSI, USC, VAT or local property tax arrears owed by that company, subject to prior written notification from Revenue.

• Where a company defaults on PAYE, VAT or LPT, Revenue can make the holder of a fixed charge on the company's book debts liable for those arrears, provided the holder has first been notified in writing of the potential liability.
• A holder who notifies Revenue of the fixed charge within 21 days of its creation (or transfer) can limit liability to amounts the company fails to pay after Revenue's notification; otherwise the holder is also liable for arrears predating the notification.
• The holder's total liability cannot exceed the debt repayments received from the company, and is further restricted to payments received after Revenue's notification of potential liability.
• Revenue may withdraw a notification at any time without affecting liabilities already accrued, and may delegate their powers under this section to a nominated officer.