Taxes Consolidation Act 1997 section 778

Exceptions to charge to tax under section 777

Section 778 provides for certain exclusions from the charge to tax under section 777, which taxes employees on relevant benefits provided by their employers through unapproved retirement benefits schemes.

• The section 777 charge does not apply where the retirement benefits scheme is a Revenue-approved scheme, a statutory scheme, or a scheme established by a foreign government for its employees.
• The charge also does not apply for any year of assessment in which the employee is either not assessable to income tax on the employment income at all, or is assessable only on the remittance basis.
• Where an employee has been taxed under section 777 but can prove that no payment of the relevant benefits was made and that no such payment will be made, the employee may apply for relief within six years of the event that prevented payment.
• Revenue may grant relief by repayment or otherwise, and where the employee can establish the position in relation to only part of the benefits, Revenue may grant such relief as appears just and reasonable.