Finance Act, 1993
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Tax treatment of certain severance payments. |
7.—(1) Section 115 of the Income Tax Act, 1967 , is hereby amended by the insertion of the following subsection after subsection (1): | |
“(1A) (a) Paragraph (d) of subsection (1) shall not apply to the following payments, that is to say— | ||
(i) a termination allowance payable in accordance with the provisions of section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992, and any regulations made thereunder, | ||
(ii) a severance allowance or a special allowance payable in accordance with the provisions of Part V (inserted by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992) of the Ministerial and Parliamentary Offices Act, 1938 , or | ||
(iii) a special severance gratuity payable under section 7 of the Superannuation and Pensions Act, 1963 , or any analogous payment payable under or by virtue of any other enactment. | ||
(b) (i) Subparagraphs (i) and (ii) of paragraph (a) shall apply and have effect in relation to payments made on or after the 1st day of November, 1992. | ||
(ii) Subparagraph (iii) of paragraph (a) shall apply and have effect in relation to payments made on or after the 6th day of May, 1993.”. | ||
(2) (a) This subsection applies to the following payments, that is to say— | ||
(i) a termination allowance (other than that part of the allowance which comprises a lump sum) payable in accordance with the provisions of section 5 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992, and any regulations made thereunder, and | ||
(ii) a severance allowance or a special allowance payable in accordance with the provisions of Part V (inserted by the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act, 1992) of the Ministerial and Parliamentary Offices Act, 1938 . | ||
(b) Notwithstanding any other provision of the Income Tax Acts, payments to which this subsection applies, made on or after the 1st day of November, 1992, shall be deemed to be— | ||
(i) profits or gains accruing from an office or employment and, accordingly— | ||
(I) tax under Schedule E shall be charged thereon, and | ||
(II) the tax so chargeable shall be computed under section 110 (1) (inserted by the Finance Act, 1991 ) of the Income Tax Act, 1967 , | ||
and | ||
(ii) emoluments to which the provisions of Chapter IV of Part V of the Income Tax Act, 1967 , are applied by section 125 of that Act. |