Finance Act, 1979

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Treatment for tax purposes of certain benefits payable under Social Welfare Acts, 1952 to 1979, and under Insurance (Intermittent Unemployment) Acts, 1942 to 1978.

11.—(1) The following provisions shall have effect for the year 1980-81 and subsequent years of assessment.

(2) Amounts falling to be paid on foot of the benefits mentioned in Part I of the Table to this section shall be deemed to be profits or gains arising or accruing from an employment and, accordingly—

(a) tax under Schedule E shall be charged on every person, to whom any such benefit is payable, in respect of all amounts falling to be paid on foot of such benefits, and

(b) the tax so chargeable shall be computed under section 110 (1) of the Income Tax Act, 1967 .

(3) All amounts falling to be paid on foot of the benefits mentioned in Parts I and II of the Table to this section shall be deemed to be 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.

(4) (a) The Revenue Commissioners may make regulations modifying the Income Tax (Employment) Regulations, 1960 (S.I. No. 28 of 1960), in their application to the benefits mentioned in Parts I and II of the Table to this section and the benefits mentioned in section 224 (2) of the Income Tax Act, 1967 .

(b) Every regulation made under this section shall be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next twenty-one days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done thereunder.

TABLE

Part I

Benefits referred to in subsection (2)

(a) the following benefits under the Social Welfare Acts, 1952 to 1979 :

(i) disability benefit,

(ii) unemployment benefit,

(iii) maternity allowance comprised in maternity benefit,

(iv) pay-related benefit,

(v) deserted wife's benefit, and

(vi) injury benefit, and disablement benefit, which are comprised in occupational injuries benefit;

(b) intermittent unemployment benefit under the Insurance (Intermittent Unemployment) Acts, 1942 to 1978.

Part II

The following benefits under the Social Welfare Acts, 1952 to 1979 :

(i) invalidity pension, or

(ii) death benefit which is comprised in occupational injuries benefit, insofar as consisting of a pension payable to a widow, a widower, an orphan or a parent under section 17 , 18 , 19 , 20 or 21 of the Social Welfare (Occupational Injuries) Act, 1966 .