Taxes Consolidation Act 1997 section 529C

Deduction of tax from relevant payments

Section 529C requires a qualifying company to deduct tax at the standard rate from relevant payments made to a specified person for artistic services, and provides for an expense deduction claim and penalties for non-compliance.

• A qualifying company making a relevant payment to a specified person must deduct tax at the standard rate; the specified person must accept the deduction and the company is treated as having paid the full amount.
• The specified person may claim a reduction in the relevant payment for unreimbursed expenditure incurred in providing artistic services, computed as if those services were a separate trade.
• Where a Revenue officer is satisfied the claimed expenditure would not have been disallowed under section 81, the officer issues a notification to the qualifying company specifying the allowable deduction, and the company then deducts tax from the reduced amount.
• A qualifying company that fails to deduct tax is liable to pay the tax to Revenue at the standard rate and may also face a penalty of up to €5,000 or the amount of tax due, whichever is the lesser.