Taxes Consolidation Act 1997 section 629A

Tax on non-resident company recoverable from another member of group or from controlling director

Section 629A provides a mechanism for Revenue to recover unpaid exit tax from an Irish-resident fellow group company or a controlling director where the liable company defaults on payment.

• Where exit tax under section 627(2) remains unpaid six months after the due date, Revenue may serve a notice on a fellow group company or controlling director requiring payment within 30 days.
• The notice may be served on any Irish-resident company in the same group as the defaulting company, or on an Irish-resident controlling director, provided the relationship existed at any time within the 12 months before the gain accrued.
• Any amount paid under the notice is recoverable from the person served as if it were their own tax liability, but that person may in turn recover the amount from the defaulting company.
• A payment made under the notice is not allowable as a deduction in computing income, profits or losses for any tax purpose.