Section 112 Basis of assessment, persons chargeable and extent of charge

Source

Taxes Consolidation Act 1997 section 112.

(1) Income tax under Schedule E shall be charged for each year of assessment on every person having or exercising an office or employment of profit mentioned in that Schedule, or to whom any annuity, pension or stipend chargeable under that Schedule is payable, in respect of all salaries, fees, wages, perquisites or profits whatever therefrom, and shall be computed on the amount of all such salaries, fees, wages, perquisites or profits whatever therefrom for the year of assessment.

(2)(a) In this section, “emoluments” means anything assessable to income tax under Schedule E.

(b) Where apart from this subsection emoluments from an office or employment would be for a year of assessment in which a person does not hold the office or employment, the following provisions shall apply for the purposes of subsection (1):

(i) if in the year concerned the office or employment has never been held, the emoluments shall be treated as emoluments for the first year of assessment in which the office or employment is held, and

(ii) if in the year concerned the office or employment is no longer held, the emoluments shall be treated as emoluments for the last year of assessment in which the office or employment was held.

Amendments

Finance Act 2017 section 77 and Schedule 1.

(3) Notwithstanding subsection (1) and subject to subsections (4) and (6), the income tax under Schedule E to be charged for the year of assessment 2018 and subsequent years of assessment in respect of emoluments to which Chapter 4 of Part 42 applies or is applied shall be computed on the amount of the emoluments paid to the person in the year of assessment.

(4) Where emoluments chargeable under Schedule E arise in the year of assessment 2017, and those emoluments are also chargeable to income tax in accordance with subsection (3) for the year of assessment 2018 or a subsequent year of assessment, the amount of the emoluments chargeable to income tax for the year of  assessment  2017  shall,  on  a claim being made by  the  person  so  chargeable,  be  reduced  to  the amount of emoluments that would have been charged to income tax had subsection (3) applied for that year of assessment.

Amendments

 Finance Act 2017 section 77 and Schedule 1.

(5) Where a person dies and emoluments are due to be paid to that deceased person, the payment of such emoluments shall be deemed to have been made to the deceased person immediately prior to death.

Amendments

 Finance Act 2017 section 77 and Schedule 1.

(6)( a) In this subsection, “proprietary director” has the same meaning as it has in section 472.

(b) Subsection (3) shall not apply to—

(i) emoluments paid  directly  or  indirectly  by  a   body corporate (or by any person who is connected (within the meaning of section 10) with the body corporate) to a proprietary director of the body corporate, or

(ii) emoluments in respect of which a notification has issued under section 984(1).

Amendments

  Finance Act 2017 section 77 and Schedule 1.