Taxes Consolidation Act 1997 section 124A

Tax treatment of payments made pursuant to an order under section 2B of Employment Permits Act 2003

Section 124A imposes an income tax charge on payments made under a court order where an employer has employed a foreign national without an employment permit.

• Payments made under a court order under section 2B of the Employment Permits Act 2003 are treated as employment income taxable under Schedule E
• Such payments fall within the PAYE and USC systems of tax deduction
• The exemption for certain payments under employment law (section 192A) does not apply to these payments
• The payments are not treated as reckonable emoluments for PRSI purposes