Taxes Consolidation Act 1997 section 238

Annual payments not payable out of taxed income

Section 238 requires tax to be deducted at the standard rate from annuities, other annual payments and patent royalties where these payments are made from income that has not been charged to income tax, or from capital or exempt income.

• When an annual payment is made from untaxed income, the payer must deduct income tax at the standard rate in force at the time of payment and account to Revenue for the tax withheld.
• The payer must promptly deliver an account of the payment and the tax deducted to Revenue, who will then assess and charge the tax; if no account is delivered or Revenue is not satisfied, an estimated assessment may be raised.
• The section does not apply to yearly interest or to rents chargeable under Case V of Schedule D, except where rents are paid to a non-resident landlord or to a collection agent operating non-resident landlord withholding tax under section 1041.
• A person aggrieved by an assessment may appeal to the Appeal Commissioners within 30 days, but only after submitting the required account and paying the tax due on the basis of that account.