Taxes Consolidation Act 1997 section 787T

Discharge of administrator from tax

Section 787T allows the administrator of a relevant pension arrangement to apply to Revenue for discharge from a tax liability arising on a benefit crystallisation event where the administrator reasonably believed no liability arose or that the liability was less than the actual amount.

• An administrator who reasonably believed a benefit crystallisation event either did not give rise to an income tax liability, or gave rise to a lower liability than the actual amount, may apply to Revenue in writing for discharge from the relevant tax liability.
• Revenue may discharge the administrator from the liability if, having regard to all the circumstances, they consider it would not be just and reasonable to hold the administrator liable, and must notify the administrator of their decision in writing.
• Where the administrator is discharged, the individual in respect of whom the income tax charge arises becomes personally liable for the tax.
• The provision recognises that administrators may act in good faith on incomplete or incorrect information supplied by the individual, and should not bear the tax consequences of that reliance.