S.I. No. 166/1960 - Income Tax (Employments) (No. 2) Regulations, 1960.

S.I. No. 166 of 1960.

INCOME TAX (EMPLOYMENTS) (No. 2) REGULATIONS, 1960.

The Revenue Commissioners, in exercise of the powers conferred on them by sections 6 , 9 , 11 and 14 of the Finance (No. 2) Act, 1959 (No. 42 of 1959), hereby make the following Regulations:

1. These Regulations may be cited as the Income Tax (Employments) (No. 2) Regulations, 1960.

2. The Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), are hereby amended by the insertion after Part VI of the Part set out in the Schedule to these Regulations.

SCHEDULE.

PART VII.

Special Provisions for Casual Employees.

Interpretation (Part VII).

47. In this Part of these Regulations—

"casual employee" means an employee who is normally employed by an employer for a period of less than a week and who receives payments of emoluments from the employer for the period of the employment, or for the services rendered, or for the period of employment and the services rendered and who is not paid weekly or by reference to fixed periods exceeding a week, but including such an employee who has other employment;

"casual employment" means employment by reference to which an employee is a casual employee;

"daily tax deduction card" has the meaning specified in paragraph (1) of Regulation 48.

Daily tax deduction card.

48. (1) Where a notice is given under paragraph (1) of Regulation 12 to a person and the Inspector has been informed by such person that he is a casual employee, the Inspector shall send to him such tax deduction card as is authorised by the Revenue Commissioners in the case of a casual employee (in this Part of these Regulations referred to as a daily tax deduction card).

(2) Where a casual employee has other employment, the total of the amounts of the tax-free allowances stated on the daily tax deduction card and on the certificate of tax-free allowances issued in respect of such other employment shall not exceed the total amount of the tax-free allowances on the notice of determination of the amount of tax-free allowances.

(3) A casual employee to whom a daily tax deduction card has been sent shall, on the occasion of a period of casual employment, give the card to the employer and the employer shall return the card to him at the end of such period.

Deduction and payment of tax in case of casual employee.

49. (1) On the occasion of any such payment of emoluments as is referred to in Regulation 8 to a casual employee in respect of whom the employer holds a daily tax deduction card, the employer shall deduct tax, by reference to the rate of tax for the year, with due regard to any earned income relief, on the excess (if any) of the gross emoluments paid over the appropriate amount of the tax-free allowances shown in the daily tax deduction card and shall record in the appropriate space of the daily tax deduction card—

(a) the employer's registered number;

(b) the gross amount of the emoluments;

(c) the daily amount of tax-free allowances stated on the daily tax deduction card;

(d) the taxable emoluments;

(e) the amount of tax (if any) deducted on making the payment.

(2) In the calculation and deduction of the tax to be deducted as aforesaid, the employer shall be deemed to have complied with this Regulation if he calculates and deducts tax to the nearest shilling below the amount which would otherwise be deductible, but any consequent under-deduction shall be taken into account by the Inspector in determining the amount of the casual employee's tax-free allowances for a later year.

(3) The employer shall not be required to make a repayment of tax previously deducted from emoluments paid to a casual employee which were earned in his or a former employment.

(4) The employer shall on every Saturday send to the Collector a return showing in respect of every casual employee to whom he made any such payment of emoluments as is referred to in Regulation 8 at any time during the week ended on the previous Wednesday—

(a) the employee's name and address;

(b) his official tax reference number as shown on his daily tax deduction card;

(c) the amount of the emoluments paid each day to him during that week;

(d) the daily amount of tax-free allowances stated on his daily tax deduction card;

(e) the amount of tax (if any) deducted from such emoluments; and

(f) where he was previously employed by the employer during the same year of assessment, his cumulative emoluments.

(5) The employer shall send to the Collector, with the return required by paragraph (4) of this Regulation, a remittance for the amount of the tax deducted, and credit shall be given to the employee for such tax and any tax overpaid shall be refunded to him.

(6) The Collector shall give the employer a receipt on the prescribed form for the amount so remitted.

(7) Nothing in this or the next Regulation applies in relation to an employer who is for the time being authorised under Regulation 51 to make payment of tax by means of stamps.

Employer failing to pay tax in case of casual employee.

50. (1) If within nine days from the end of any week ended on a Wednesday the employer has remitted no amount of tax to the Collector under Regulation 49 for that week and the Collector is unaware of the amount, if any, which the employer is liable so to remit, the Collector may give notice to the employer requiring him to send to the Collector, within the time limited in the notice, a return showing the name of every casual employee to whom he made any payment of emoluments in that week, together with such particulars with regard to each such employee as the notice may require, being particulars of—

(a) the amount of the tax-free allowances appropriate to the employee's case;

(b) the separate payments of emoluments made to him during that week and the dates thereof; and

(c) any other matter affecting the calculation of the tax which the employer was liable under this Part of these Regulations to deduct during that week,

and the employer shall comply with the requirements of the notice.

(2) In a case referred to in the foregoing paragraph the Collector shall ascertain, in like manner as the employer should, under this Part of these Regulations, have ascertained, the amount of tax which the employer should have deducted from the emoluments, and shall notify the amount to the employer.

(3) A notice given by the Collector under paragraph (1) of this Regulation may extend to two or more consecutive weeks.

(4) A notice may be given by the Collector under paragraph (1) of this Regulation notwithstanding that an amount of tax has been remitted to the Collector by the employer under Regulation 49 for any week, if the Collector is not satisfied that the amount so remitted is the full amount which the employer is liable to remit to him for that week, and the provisions of this Regulation shall have effect accordingly.

Authorisation to make payment of tax deductible in case of casual employee by means of stamps.

51. (1) The Revenue Commissioners may, on application by an employer, authorise the employer to make payment of the tax deductible pursuant to this Part of these Regulations by means of stamps issued by the Revenue Commissioners for the purposes of these Regulations to be affixed by such employer in the appropriate space of the daily tax deduction card issued to the employee.

(2) The Revenue Commissioners may revoke any authority given pursuant to this Regulation if they are dissatisfied with the manner in which the employer is carrying out his duties under Regulation 52.

Deduction of tax in case of casual employee where payment by means of stamps is authorised.

52. (1) Where authority is given by the Revenue Commissioners pursuant to Regulation 51 and the daily tax deduction card is held by the employer, the employer shall, on the occasion of any such payment of emoluments as is referred to in Regulation 8 to the employee, deduct tax by reference to the rate of tax for the year, with due regard to any earned income relief, on the excess (if any) of the gross emoluments paid over the appropriate amount of the tax-free allowances shown on the daily tax deduction card and—

(a) shall affix to the daily tax deduction card stamps issued by the Revenue Commissioners for the purposes of these Regulations equal in value to the amount of the tax deducted by him from the emoluments, and

(b) shall record in the appropriate space of the daily tax deduction card—

(i) the employer's registered number,

(ii) the gross amount of the emoluments,

(iii) the daily amount of the tax-free allowances stated in the daily tax deduction card,

(iv) the taxable emoluments,

(v) the amount of tax (if any) deducted on making the payment.

(2) In the calculation and deduction of the tax to be deducted as aforesaid, the employer shall be deemed to have complied with this Regulation if he calculates and deducts tax to the nearest shilling below the amount which would otherwise be deductible, but any consequent under-deduction shall be taken into account by the Inspector in determining the amount of the casual employee's tax-free allowances for a later year.

(3) (a) If the Collector has reason to believe that an employer authorised pursuant to Regulation 51 has not complied with this Regulation, the Collector may give notice to the employer requiring him to send to the Collector, within the time limited in the notice, a return showing the name of every employee to whom he made any payment of emoluments in the period from the proceeding 6th day of April to the day specified by the notice, together with such particulars with regard to each such employee as the notice may require, being particulars of—

(i) the amount of the tax-free allowances appropriate to the employee's case;

(ii) the separate payments of emoluments made to him during that period and the dates thereof; and

(iii) any other matter affecting the calculation of the tax which the employer was liable under this Part of these Regulations to deduct from the employee during that period,

and the employer shall comply with the requirements of the notice.

(b) In relation to the year 1960-61 the words "the 6th day of October, 1960" shall be substituted for the words "the preceding 6th day of April" where they occur in subparagraph (a) of this paragraph.

(4) In a case referred to in the foregoing paragraph, the Collector shall ascertain, in like manner as the employer should, under this Part of these Regulations, have ascertained, the amount of tax which the employer should have deducted from the emoluments, and shall notify that amount to the employer.

Daily emergency card.

53. (1) If a casual employee does not on the occasion of any period of casual employment deliver his daily tax deduction card to his employer, the employer shall, on making any such payment of emoluments as is referred to in Regulation 8 to the employee deduct tax and keep records on a daily emergency card on the basis that the amount of the employee's tax-free allowances is ten shillings a day, and at the end of the period of casual employment shall give the daily emergency card to the employee.

(2) Subject to paragraph (1) of this Regulation, the provisions of Regulations 49 and 50 or of Regulation 52 (as may be appropriate) shall have effect in a case referred to in that paragraph in like manner as they have effect in a case in which a daily tax deduction card is held and, for that purpose, the daily emergency card shall be treated, so far as the form thereof permits, as a daily tax deduction card.

(3) In this Regulation "daily emergency card" means a card in the form prescribed for the purposes of this Regulation.

Register of casual employees.

54. (1) Every employer who has in his employment in any year a casual employee or casual employees to whom he makes such payments of emoluments as are referred to in Regulation 8 shall keep and maintain in respect of such employee or employees a register for that year on the prescribed form.

(2) Where a register is kept and maintained under this Regulation—

(a) the employer shall enter in the register, in relation to each employee, the particulars indicated by the form of the register as being required to be entered therein, and

(b) the employer, on being required so to do by the Revenue Commissioners by notice, shall deliver the register to the Revenue Commissioners within the period specified in the notice.

(3) Nothing in this Regulation applies in relation to an employer who is for the time being authorised under Regulation 51 to make payment of tax by means of stamps.

Return of cards, etc.

55. (1) A casual employee to whom a daily tax deduction card has been issued shall return the card to the Collector during the period specified in that behalf on the card.

(2) A casual employee to whom a daily emergency card has been given pursuant to Regulation 53 shall send the card to the Collector.

(3) Where the Collector receives a card to which stamps have been affixed pursuant to this Part of these Regulations, credit shall be given to the employee for the amount of tax represented by the stamps and any tax overpaid shall be refunded.

(4) Where an employer has given a card to which he has affixed stamps pursuant to this Part of these Regulations to the employee, he shall be deemed to have paid the tax represented by the stamps to the Revenue Commissioners.

Exclusion of certain provisions

56. (1) The provisions of Regulations 5 and 9, paragraph (2) of Regulation 12, Regulation 13, paragraph (5) of Regulation 14, paragraph (2) of Regulation 15, Regulations 16 to 27, Regulation 29 and Regulations 31 to 35 shall not apply in relation to a casual employee, but this paragraph shall be taken as not affecting any application of those provisions in relation to him by reference to employment other than casual employment.

(2) In a case in which an authorisation has been given pursuant to paragraph (1) of Regulation 51, the provisions of Regulation 30 shall not apply in relation to the casual employee or employees concerned, but this paragraph shall be taken as not affecting any application of those provisions in relation to him or them by reference to employment other than casual employment.

(3) The requirements of paragraph (4) of Regulation 14 with respect to a new certificate of tax-free allowances shall, in the case of a casual employee, be disregarded and, in lieu thereof, the Inspector shall, on receipt of the daily tax deduction card previously issued, send to the employee a new daily tax deduction card, but this paragraph shall be taken as not affecting any application of the provisions of the said paragraph (4) in relation to the employee by reference to employment other than casual employment.

GIVEN this 5th day of August, 1960.

S. RÉAMONN,

Revenue Commissioner.

EXPLANATORY NOTE.

These Regulations prescribe the manner in which deductions of Income Tax from emoluments of casual employees under the "Pay As You Earn" system is to operate. They amend the Income Tax (Employments) Regulations, 1960, by the insertion therein of a new Part—Part VII—the text of which is contained in the Schedule to these Regulations.

Provision is made for the issue by the Inspector of Taxes of a daily tax deduction card to a person who informs the Inspector that he is a casual employee. On taking up casual employment the employee will give the daily tax deduction card to his employer. The employer is required to enter the appropriate particulars on the card on the occasion of every payment of emoluments and, on the termination of the employment, to return the card to the employee.

Employers must send to the Collector every Saturday remittances for the amount of tax deducted from the emoluments of casual employees during the week ended on the previous Wednesday, together with returns containing particulars specified in the Regulations. Employers may, on application to the Revenue Commissioners, be authorised to make payment of the tax deductible by affixing stamps to the daily tax deduction cards.

Where a casual employee does not give to his employer a daily tax deduction card, the employer is obliged to record the tax deducted on a daily emergency card which provides for a tax-free allowance of ten shillings a day. The employer must deduct tax from the excess of the employee's daily earnings over that amount.

Employers who do not use stamps are required to maintain registers of casual employees.

Provision is made for the return by casual employees of daily tax deduction cards and daily emergency cards to the Collector and for refunding any tax overpaid by them.