Taxes Consolidation Act 1997 section 997A

Credit in respect of tax deducted from emoluments of certain directors

Section 997A restricts the PAYE credit available to directors and employees who have a material interest in the company paying their emoluments, by denying credit for tax deducted unless the company has actually remitted that tax to the Collector-General.

• A person has a material interest in a company if that person, alone or together with connected persons, beneficially owns or controls more than 15 per cent of the company's ordinary share capital.
• No credit for PAYE deducted from the emoluments of a person with a material interest is allowed unless there is documentary evidence that the tax has been remitted to the Collector-General by the company.
• Where the company has not remitted the full amount of PAYE deducted, tax remitted is treated as relating first to employees without a material interest, and any balance is then apportioned among those with a material interest in proportion to their respective emoluments.
• Amounts remitted by the company are set firstly against PRSI, secondly against USC, and lastly against income tax, and a person aggrieved by a Revenue decision under this section may appeal to the Tax Appeals Commission within 30 days.