Taxes Consolidation Act 1997 section 1058

Refusal to allow deduction of tax

Section 1058 penalises any person who refuses to allow a deduction of income tax or corporation tax from payments where such deduction is authorised by the Tax Acts, and renders void any agreement to pay interest, rent or other annual payments gross.

• A person who refuses to allow an authorised tax deduction from a payment forfeits a sum of €3,000.
• The deduction must be one authorised by the Tax Acts for income tax or corporation tax purposes.
• Any agreement to pay interest, rent or other annual payment in full without allowing the tax deduction is void.
• The provision reinforces the obligation to operate the withholding tax system and prevents parties from contracting out of it.