S.I. No. 260/1972 - Income Tax (Employments) Regulations, 1972.

S.I. No. 260 of 1972.

INCOME TAX (EMPLOYMENTS) REGULATIONS, 1972.

The Revenue Commissioners, in exercise of the powers conferred upon them by section 127 of the Income Tax Act, 1967 (No. 6 of 1967), as amended by section 2 of the Finance Act, 1972 (No. 19 of 1972), hereby make the following Regulations :

1. These Regulations may be cited as the Income Tax (Employments) Regulations, 1972.

2. The Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), are hereby amended by the insertion after Part VIII (inserted by the Income Tax (Employments) Regulations, 1970 ( S.I. No. 223 of 1970 )) of the Part set out in the Schedule to these Regulations.

SCHEDULE

PART IX

Contributions by employees to certain superannuation funds and schemes

59. In this Part of these Regulations "allowable contribution" means—

(a) any ordinary annual contribution, or

(b) any other contribution treated by the Revenue Commissioners, as respects the year in which it is paid, as an ordinary annual contribution paid in that year,

which is payable by an employee and deductible by the employer from emoluments of the employee, and which is, by virtue of section 222 or 233 of the Income Tax Act, 1967 (No. 6 of 1967), or by virtue of section 16 , 17 or 25 of the Finance Act, 1972 (No. 19 of 1972), allowable as a deduction from such emoluments for the purposes of assessment under Schedule E.

60. When making a deduction or repayment of tax in accordance with the provisions of Part IV of these Regulations from or in respect of emoluments to which Chapter IV of Part V of the Income Tax Act, 1967 , applies, an employer shall make such deduction or repayment as would require to be made if the amount of the emoluments were those emoluments reduced by the amount of the allowable contribution deductible from those emoluments.

61. This Part of these Regulations shall come into operation on the 6th day of April, 1974.

GIVEN this 30th day of October, 1972.

J. F. RICHARDSON,

Revenue Commissioner.

EXPLANATORY NOTE

Under these Regulations an employer is required, when applying PAYE to an employee's earnings, to make any necessary deduction or repayment of PAYE income tax by reference to the amount of the earnings reduced by the amount of any superannuation contributions which relate to those earnings and which is allowable for income tax purposes.

The purpose of the Regulations is to secure that allowable superannuation contributions will be allowed for tax purposes by way of a direct deduction from chargeable income, and in this way any fluctuations in periodic superannuation deductions which may be caused by alterations in earnings during the year will be automatically reflected for PAYE purposes.

The Regulations come into operation as from April 6, 1974.