S.I. No. 28/1960:

INCOME TAX (EMPLOYMENTS) REGULATIONS, 1960.

INCOME TAX (EMPLOYMENTS) REGULATIONS, 1960.

ARRANGEMENT OF REGULATIONS.

PART I.

GENERAL.

Regulation.

1. Citation and commencement.

2. Interpretation.

3. Intermediate employers.

4. Liability for payment of deduction and entitlement to payment of repayment.

5. Authorisation to make payment of tax by means of stamps.

6. Powers of Inspector.

7. Service by post.

PART II.

REGISTER OF EMPLOYERS AND REGISTERS OF EMPLOYEES.

8. Register of employers.

9. Registers of employees.

PART III.

TAX-FREE ALLOWANCES.

10. Determination of appropriate tax-free allowances by Inspector.

11. Tax deductible at standard rate.

12. Notice of determination of tax-free allowances.

13. Return by employer in relation to employee.

14. Objection and appeal against amount of tax-free allowances.

15. Amendments of amount of tax-free allowances.

16. Notice to employer of amended amount of tax-free allowances.

PART IV.

DEDUCTION AND REPAYMENT OF TAX.

17. General provision for deductions and repayments.

18. Calculation and making of deduction or repayment where tax deduction card held.

19. Subsidiary emoluments of employee paid monthly, etc.

20. Deduction where stamp book held.

21. Deduction in special cases.

22. Change of employment where tax deduction card or stamp book held.

23. Change of employment where certificate of tax-free allowances, but not tax deduction card or stamp book, held.

24. Death of employee.

25. Employee who does not submit certificate of tax-free allowances or copies of certificate prepared by a former employer.

26. Emoluments not paid weekly or monthly.

27. Aggregation of emoluments in non-cumulative cases.

28. Tax-free emoluments.

29. Repayment during sickness and unemployment.

30. Certificate of tax deducted.

PART V.

PAYMENT AND RECOVERY OF TAX, ETC.

31. Payment of tax by employer.

32. Employer failing to pay tax.

33. Sending of stamp books to Collector.

34. Employer failing to send stamp book.

35. Return by employer at end of year.

36. Modification of certain provisions.

37. Inspection of employer's records.

38. Death of employer.

39. Succession to a business, etc.

PART VI.

ASSESSMENT.

40. Exclusion of assessments for certain years.

41. Assessment of emoluments.

42. Return of certain emoluments by employer.

43. Notification of liability.

44. Objections and appeals against assessment.

45. Recovery of underpayments.

46. Recovery of tax from employee.

S.I. No. 28 of 1960

INCOME TAX (EMPLOYMENTS) REGULATIONS, 1960.

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

PART I. GENERAL.

1. These Regulations may be cited as the Income Tax (Employments) Regulations, 1960, and shall come into operation on the 6th day of April, 1960.

2. (1) In these Regulations, except where the context otherwise requires--

" the Act " means the Finance (No. 2) Act, 1959 (No. 42 of 1959) ;

" certificate of tax-free allowances " has the meaning specified in paragraph (2) of Regulation 12 ;

" the Collector " means such person, being a person appointed in pursuance of the provisions of the Income Tax Acts to be a collector of income tax, as the Revenue Commissioners may from time to time nominate to be the Collector for the purposes of these Regulations ;

" cumulative emoluments ", in relation to any date, means the sum of all payments of emoluments made by the employer to the employee from the beginning of the year up to and including that date ;

" cumulative tax " means the tax due by reference to the rate of income tax for the year, with due regard to any earned income relief, in respect of any cumulative taxable emoluments at the relevant date ;

" cumulative taxable emoluments ", in relation to any date, means the cumulative emoluments reduced by the cumulative tax-free allowances ;

" cumulative tax-free allowances ", in relation to any date, means the sum of the tax-free allowances from the beginning of the year up to and including that date, as shown on the employee's tax deduction card ;

" earned income relief " means the relief from income tax given by section 16 of the Finance Act, 1920, as amended by any subsequent enactment ;

" emoluments " means emoluments to which Part II of the Act applies ;

" employee " means any person in receipt of emoluments ;

" employer " means any person paying emoluments ;

" Inspector " means an Inspector of Taxes ;

" prescribed " means prescribed by the Revenue Commissioners ;

" reliefs from income tax " includes allowances and deductions ;

" stamp book " has the meaning specified in Regulation 5 ;

" taxable emoluments " means emoluments reduced by tax-free allowances ;

" tax-free allowances ", in relation to an employee, means the appropriate reliefs from income tax for which he qualifies, increased by any earned income relief relative thereto ;

" temporary tax deduction form " means such form as may be prescribed on which particulars of emoluments paid and tax deducted are to be recorded by the employer pending receipt of a tax deduction card or stamp book ;

" total net tax deducted " means, in relation to the emoluments paid to any employee during any period, the total tax deducted from those emoluments less any tax repaid to the employee ;

" year " means year of assessment ;

other expressions have the same meaning as in the Income Tax Acts.

(2) In relation to the year 1960-61, for each of the references to the beginning of the year contained in paragraph (1) of this Regulation in the definitions of " cumulative emoluments " and " cumulative tax-free allowances " there shall be substituted a reference to the 6th day of October, 1960.

3. (1) Where an employee works under the general control and management of a person who is not his immediate employer, that person (referred to hereafter in this Regulation as the principal employer) shall be deemed to be the employer for the purposes of these Regulations, and the immediate employer shall furnish the principal employer with such particulars of the employee's emoluments as may be necessary to enable the principal employer to comply with the provisions of these Regulations.

(2) If the employee's emoluments are actually paid to him by the immediate employer--

(a) the immediate employer shall be notified by the principal employer of the amount of tax to be deducted or repaid when the emoluments are paid to the employee, and shall deduct or repay the amount so notified to him accordingly, and

(b) the principal employer shall make a corresponding deduction or addition on making to the immediate employer the payment out of which the said emoluments will be paid.

4. Persons who are required to make any deduction or repayment referred to in these Regulations shall, in the case of a deduction (whether or not made), be accountable for the amount of the tax, and liable to pay that amount, to the Revenue Commissioners and shall, in the case of a repayment, be entitled, if it has been made, to be paid it, or given credit for it, by the Revenue Commissioners.

5. (1) In the case of an employee who is in receipt of a fixed salary or wage, the Revenue Commissioners may, on application by the employer, authorise the employer to make payment of tax deductible pursuant to these Regulations by means of stamps issued by the Revenue Commissioners for the purposes of these Regulations to be affixed by such employer to stamp books supplied by the Revenue Commissioners for the said purposes.

(2) In these Regulations references to a stamp book shall be construed as references to a stamp book referred to in the foregoing paragraph and references to a part of a stamp book shall be construed as references to any of the parts which, when a stamp book so referred to is issued, are comprised therein and designated as parts thereof.

(3) The Revenue Commissioners may revoke any authority which they have given pursuant to paragraph (1) of this Regulation if they are dissatisfied with the manner in which the employer is carrying out his duties under Regulation 20 or Regulation 33.

6. Anything which is authorised or required by these Regulations to be done by the Inspector shall be done by such Inspector as the Revenue Commissioners may direct.

7. Any notice, notification, certificate, requirement, tax deduction card or stamp book which is authorised or required to be given, served, made, sent or issued under these Regulations may be sent by post.

PART II. REGISTER OF EMPLOYERS AND REGISTERS OF EMPLOYEES.

8. (1) (a) Every employer who makes payments of emoluments to an employee at a rate exceeding a rate equivalent to a rate of £6 a week, or, in the case of an employee with other employment, £1 a week, shall send to the Revenue Commissioners a notification of his name and address and of the fact that he is paying such emoluments.

(b) In the case of an employee paid monthly or at longer intervals, the references in subparagraph (a) of this paragraph to a rate of £6 a week and a rate of £1 a week shall be treated as references to a rate of £26 a month and a rate of £4 10s. a month respectively.

(2) Where a change occurs in a name or address which has been notified under this Regulation, the employer shall send to the Revenue Commissioners a notification of the change.

(3) An employer who is liable to send a notification under this Regulation shall do so within the period of nine days beginning on the day on which he becomes so liable.

(4) The Revenue Commissioners shall keep and maintain a register in which names and addresses notified to them under this Regulation shall be registered and, when any name or address has been registered, they shall give notice of the registration to the employer.

9. (1) Every employer who has in any year an employee or 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 throughout the year (or throughout the part or parts of a year during which he has an employee or employees as aforesaid) 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.

PART III. TAX-FREE ALLOWANCES.

10. (1) The amount of the tax-free allowances appropriate to an employee for any year shall be determined by the Inspector, who for that purpose may have regard to any of the following matters, namely--

(a) the reliefs from income tax to which the employee is entitled for the year in which the amount of the tax-free allowances is determined, so far as his title to those reliefs has been established at the time of the determination :

Provided that, where the amount of the tax-free allowances is determined before the beginning of the year for which it is to have effect, the Inspector shall disregard any such relief if he is not satisfied that the employee will be entitled to it for that year ;

(b) any income of the employee (other than the emoluments in relation to which the amount of the tax-free allowances is being determined), the tax on which for the year to which the tax-free allowances relate will be reduced by any relief ;

(c) any tax overpaid for any previous year, including a year before the year 1960-61, which has not been repaid ;

(d) any tax remaining unpaid for any previous year, including a year before the year 1960-61, which is not otherwise recovered ;

(e) such other adjustments as may be necessary to secure that, so far as possible, the tax in respect of the employee's emoluments for the year to which the tax-free allowances relate shall be deducted from the emoluments paid during the year.

(2) Where an employee requests the Inspector to disregard any particular relief or income referred to in subparagraph (a) or (b) of the foregoing paragraph, the Inspector shall disregard it for the purposes of that paragraph.

(3) The Inspector may disregard part or all of any expenses in respect of which the employee may be entitled to relief from income tax if it is impracticable to take account of all those expenses in determining the appropriate amount of tax-free allowances, and, where he does so, he shall direct the employer to disregard an equivalent amount of the employee's emoluments in calculating the tax to be deducted or repaid when any payment of emoluments is made to the employee.

11. (1) The Inspector may determine that tax shall be deducted at the standard rate from any emoluments if--

(a) all the reliefs from income tax to which the employee is entitled will go to reduce the tax on income of his other than those emoluments ; or

(b) the reliefs which will go to reduce the tax on those emoluments are offset by an adjustment in respect of tax remaining unpaid for a previous year.

(2) Where the Inspector has determined that tax shall be deducted at the standard rate, he shall be deemed to have determined the appropriate amount of tax-free allowances, and all the provisions of these Regulations which relate to objections and appeals against the Inspector's determination, or to deduction of tax by reference to the appropriate amount of tax-free allowances or to the specification of cumulative tax-free allowances on any tax deduction card, or any specification of the appropriate amount of tax-free allowances, shall, with the necessary modifications, have effect accordingly.

12. (1) After the Inspector has determined the amount of the tax-free allowances for any year, he shall send notice of his determination to the employee.

(2) The Inspector shall also send to every employee to whom he gives notice under this Regulation a certificate (in these Regulations referred to as a certificate of tax-free allowances) certifying the amount of the tax-free allowances of the employee as determined by the Inspector pursuant to Regulation 10 and the employee shall give such certificate to his employer. If it appears to the Inspector that the employee has more than one source of emoluments, he shall send to the employee a separate certificate of tax-free allowances for each source of emoluments held by the employee and the employee shall give to each employer the certificate of tax-free allowances appropriate to the particular employment, but the total amount of the tax-free allowances on the separate certificates shall not exceed the total amount of the tax-free allowances on the notice of determination of the amount of tax-free allowances.

13. (1) Where an employer is given pursuant to Regulation 12 a certificate of tax-free allowances by an employee, the employer shall, if the amount of the employee's tax-free allowances as stated in the certificate of tax-free allowances is less than the amount of the employee's emoluments for the year (that amount being calculated at the rate for the time being of such emoluments), forthwith send, to the Inspector who issued to the employer the register referred to in Regulation 9 for the year, a return stating--

(a) the employee's name ;

(b) the employee's address ;

(c) the official reference number shown on the certificate of tax-free allowances ;

(d) the amount of the tax-free allowances stated in the certificate of tax-free allowances ;

(e) the manner in which payment of emoluments is made to the employee, that is to say, weekly, monthly or as the case may be ;

(f) if the employer is authorised under Regulation 5 to make payment of tax by means of stamps, that he is so authorised.

(2) Where--

(a) an employer has, having regard to the provisions of paragraph (1) of this Regulation, not made a return pursuant to that paragraph in relation to an employee, and

(b) by reason of an increase in the employee's emoluments or of a change in the tax-free allowances to which the employee is entitled or otherwise, the amount of the employee's tax-free allowances as stated in the certificate of tax-free allowances becomes less than the amount of his emoluments for the year (that amount being calculated by reference to the rate for the time being of such emoluments),

the employer shall forthwith send, to the Inspector who issued to the employer the register referred to in Regulation 9 for the year, a return stating the matters referred to in subparagraphs (a) to (f) of paragraph (1) of this Regulation.

(3) On receipt of a return under this Regulation, the Inspector shall send to the employer a tax deduction card, or, in a case in which the employer is authorised under Regulation 5, a stamp book, in respect of the employee.

(4) Where an employer receives a tax deduction card or stamp book in a case in which he has sent a return under paragraph (2) of this Regulation, he shall enter thereon the employee's cumulative emoluments at the date of such receipt.

14. (1) If the employee is aggrieved by the Inspector's determination, he may give notice in writing of objection to the Inspector, stating the grounds of his objection, within twenty-one days of the date on which the determination was notified to him.

(2) On receipt of the notice of objection, the Inspector may amend his determination by agreement with the employee, and in default of such agreement the employee, on giving notice in writing to the Inspector, may appeal to the Special Commissioners.

(3) The Special Commissioners on appeal shall determine the amount of tax-free allowances having regard to the same matters as the Inspector may have regard to when the amount of the tax-free allowances is determined by him, and, subject to the provisions of Regulation 15, their determination shall be final.

(4) When the amount of the tax-free allowances is amended, either by the Inspector or by the Special Commissioners, the Inspector shall send to the employee a notice of the new determination and also a new certificate of tax-free allowances which the employee shall give to the employer. The employer, within three days after the receipt of such new certificate, shall return the previous certificate of tax-free allowances to the Inspector.

(5) A tax deduction card or stamp book appropriate to the amount of the tax-free allowances of an employee as determined by the Inspector may be issued to the employer, notwithstanding that the Inspector's determination is the subject of an objection or appeal.

(6) An appeal under this Regulation may be heard and determined by one Special Commissioner.

15. (1) If an amount of tax-free allowances is found not to be appropriate because the actual circumstances are different from the circumstances by reference to which it was determined by the Inspector or the Special Commissioners, the Inspector may, and if so required by the employee shall, by reference to the actual circumstances, amend, by way of increase or reduction, the previous determination.

(2) After the Inspector has amended the determination of the amount of the tax-free allowances, he shall give notice of the new determination to the employee not later than the date on which a new tax deduction card or stamp book is sent to the employer under Regulation 16. The Inspector shall send a new certificate of tax-free allowances to the employee together with notice of the new determination and the employee shall give the new certificate of tax-free allowances to the employer. The employer, within three days after the receipt of such new certificate, shall return the previous certificate of tax-free allowances to the Inspector.

(3) The provisions of Regulation 14 regarding objections and appeals shall apply in relation to the amended determination as they applied in relation to the previous determination.

16. Where a determination of the Inspector or the Special Commissioners is amended after the tax deduction card or stamp book has been issued, the Inspector shall send to the employer, and the employer shall thereafter use, such new tax deduction card or stamp book as may be appropriate.

PART IV. DEDUCTION AND REPAYMENT OF TAX.

17. On the occasions of such payments of emoluments as are referred to in Regulation 8, deductions or repayments of tax shall be made subject to and in accordance with the subsequent provisions of this Part of these Regulations.

18. (1) On the occasion of any payment of emoluments to an employee in respect of whom the employer holds a tax deduction card, the employer, except where these Regulations otherwise provide, shall ascertain the cumulative emoluments of the employee at the date of the payment, and, by reference to the corresponding cumulative tax-free allowances specified on the tax deduction card, the cumulative taxable emoluments ; and, having ascertained the cumulative taxable emoluments, he shall ascertain the cumulative tax in respect thereof.

(2) If the said cumulative tax exceeds the cumulative tax corresponding to the employee's cumulative emoluments at the date of the last preceding payment of emoluments (hereafter in this Regulation referred to as the previous cumulative tax), the employer shall deduct the excess from the emoluments on making the payment in question.

(3) If the said cumulative tax is less than the previous cumulative tax, the employer shall repay the difference to the employee on making the payment in question.

(4) If the said cumulative tax is equal to the previous cumulative tax, no tax shall be either deducted or repaid when the payment in question is made.

(5) Where the payment in question is the first payment in the year, paragraphs (2), (3) and (4) of this Regulation shall not apply, but the employer shall deduct the said cumulative tax from the emoluments on making the payment in question.

(6) The employer shall record, either on the tax deduction card or in such other form as may be authorised by the Revenue Commissioners, the following particulars regarding every payment of emoluments which he makes to the employee, namely--

(a) the date of the payment ;

(b) the gross amount of the emoluments ;

(c) the cumulative emoluments in relation to the said date ;

(d) the cumulative taxable emoluments in relation to that date ;

(e) the corresponding cumulative tax ; and

(f) the amount of tax, if any, deducted or repaid on making the payment.

(7) Where the Inspector determines that tax shall be deducted at the standard rate from any emoluments, the foregoing provisions of this Regulation shall not apply, but the employer shall deduct tax at the standard rate without regard to the employee's cumulative emoluments or the corresponding cumulative tax, and shall record, either on the tax deduction card or in such other form as may be authorised by the Revenue Commissioners, the date of the payment, the gross amount of the emoluments and the amount of tax deducted therefrom.

19. (1) If the employer makes a payment in respect of overtime or other extra earnings to an employee whose main emoluments are paid monthly, and that payment is made at an earlier date in the income tax month than the date on which the main emoluments are paid, the employer shall repay no tax to the employee on the occasion of that payment, notwithstanding that tax may be repayable under the provisions of Regulation 18, but in such a case Regulation 18 shall have effect as if that payment was made on the same date in that income tax month as the date on which the main emoluments are paid.

(2) The foregoing provisions of this Regulation shall apply with the necessary modifications to payments in respect of overtime or other extra earnings which are made to an employee whose main emoluments are paid at intervals greater than a month.

20. (1) (a) On the occasion of any payment of emoluments to an employee in respect of whom he holds a stamp book, the employer, except where these Regulations otherwise provide, 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 on the stamp book and--

(i) shall affix to the stamp book stamps issued by the Revenue Commissioners for the purposes of these Regulations equal in value to the amount of the tax deductible by him from the emoluments, and

(ii) shall record on the stamp book the date of each such payment, the gross amount of the emoluments, the taxable emoluments and the amount of tax (if any) deducted on making the payment.

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

(2) If an employer to whom a stamp book has been issued ceases to employ the employee in question, he shall forthwith return the stamp book, with the appropriate stamps affixed thereto, to the Collector.

21. (1) This Regulation applies to--

(a) payments of emoluments made on the 4th or 5th day of April in a leap year or on the 5th day of April in any other year (not being the 5th day of April, 1961) to an employee who is paid weekly ;

(b) payments of emoluments made to an employee after he has ceased to be employed by the person making the payments ; and

(c) any other payments of emoluments made to any employee to which the Inspector directs that this Regulation shall apply.

(2) Regulation 18 or 20 (as may be appropriate) shall not apply to payments of emoluments to which this Regulation applies, and on making any such payment the employer shall deduct therefrom, by reference to the amount of the employee's tax-free allowances, the amount of tax which would have been deductible therefrom if the payment had been made on the preceding 6th day of April, or, where the employee has ceased to be employed by him and no tax deduction card or stamp book is held, shall deduct tax therefrom by reference to tax-free allowances at the rate of £6 a week.

(3) On making any such payment as aforesaid the employer shall record either on the tax deduction card or the stamp book, or in such other form as may be authorised by the Revenue Commissioners, the date of the payment, the gross amount of the emoluments, the amount of the appropriate tax-free allowances, the amount of the taxable emoluments, and the amount of tax (if any) deducted on making the payment :

Provided that where the employee has ceased to be employed by the employer and no tax deduction card or stamp book is held, the aforesaid particulars, except the amounts of the tax-free allowances, shall be recorded on the emergency card referred to in Regulation 25.

(4) In the case of a payment referred to in subparagraph (b) or (c) of paragraph (1) of this Regulation made during the period beginning on the 6th day of October, 1960, and ending on the 5th day of April, 1961, the reference to the 6th day of April in paragraph (2) of this Regulation shall be construed as a reference to the 6th day of October, 1960.

22. (1) If the employer ceases to employ an employee in respect of whom a tax deduction card or a stamp book has been issued to him, he shall forthwith send to the Inspector by whom the tax deduction card or stamp book was issued the relevant certificate of tax-free allowances together with a certificate on the prescribed form containing the following particulars :

(a) the name of the employee ;

(b) the date on which the employment ceased ;

(c) the week or income tax month in respect of which the last payment of emoluments was recorded on the tax deduction card or stamp book and the cumulative emoluments at the date of that payment ;

and any other particulars as to tax-free allowances, tax or any other matter which are indicated by such form as being required to be entered thereon.

(2) The employer shall make on the prescribed form two copies of the certificate required by paragraph (1) of this Regulation and shall deliver them to the employee on the date the employment ceases.

(3) Immediately on commencing his next employment the employee shall deliver to the new employer the two copies of the certificate prepared by the former employer and, subject to the provisions of paragraph (4) of this Regulation, the following provisions shall have effect :

(a) the new employer shall insert on one copy of the certificate the address of the employee, the date on which the new employment commenced, and the manner in which payment of emoluments is made to the employee, that is to say, weekly, monthly or as the case may be, and shall forthwith send that copy to the Inspector by whom tax deduction cards or stamp books are ordinarily issued to him, with an indication, if the new employer is authorised under Regulation 5 to make payment of tax by means of stamps, that he is so authorised ;

(b) the Inspector shall thereupon send to the new employer a tax deduction card or, as may be appropriate, a stamp book for the employee, and shall also send to the new employer the relevant certificate of tax-free allowances ;

(c) pending the receipt of the tax deduction card or stamp book from the Inspector, the new employer shall prepare a temporary tax deduction form and, in relation to payments of emoluments by him, record thereon the date of payment, the gross amount of emoluments and, as respects each week or income tax month (as may be appropriate), the tax-free allowances for Week 1 or Month 1 as specified on the copies of the certificate prepared by the former employer and shall deduct tax on the excess of the aggregate amount of the emoluments for the week or income tax month (as may be appropriate) over the said tax-free allowances until such time as he receives the tax deduction card or stamp book from the Inspector ;

(d) when the new employer has received a tax deduction card from the Inspector, he shall, having ascertained the aggregate of the amounts of the emoluments and the aggregate of the amounts of the tax by reference to the relevant entries on the copies of the certificate prepared by the former employer and on the temporary tax deduction form (if any), record on the tax deduction card those aggregates, and those aggregates shall be deemed to be the cumulative emoluments paid by the new employer and the cumulative tax deducted by him respectively ; in a case to which this subparagraph applies, if tax deducted by a former employer is repayable on the occasion of the first payment of emoluments after receipt of the tax deduction card and the amount repayable exceeds £5, the new employer shall forthwith notify the Inspector and shall not make the repayment until authorised to do so by the Inspector ;

(e) when the new employer has received a stamp book from the Inspector, he shall record on the stamp book the cumulative emoluments and the cumulative tax stated on the copies of the certificate prepared by the former employer and shall also record thereon the emoluments and tax stated on the temporary tax deduction form (if any) and shall, if there is a temporary tax deduction form, affix stamps to the stamp book in accordance with Regulation 20 to the value of the tax shown on the temporary tax deduction form.

(4) (a) Where the two copies of the certificate prepared by the former employer show that the last payment of emoluments was in the year preceding that in which the new employment commences, the new employer shall comply with the provisions of paragraph (3) of this Regulation with the modification that he shall not record, or have regard to, the cumulative emoluments and cumulative tax shown on the copies of the certificate.

(b) Where the two copies of the certificate prepared by the former employer show that the last payment of emoluments was in a year earlier than the year preceding that in which the new employment commences, the new employer shall comply with the provisions of subparagraph (a) of paragraph (3) of this Regulation but deduct tax from each payment of emoluments made by him to the employee, and keep records on an emergency card referred to in Regulation 25, as if those payments had been payments to which paragraph (2) of that Regulation applied.

(5) If the new employer ceases to employ the employee before he receives a tax deduction card or stamp book from the Inspector, he shall comply with the provisions of paragraphs (1) and (2) of this Regulation (except the requirement to send to the Inspector the employee's certificate of tax-free allowances) as if a tax deduction card or stamp book in respect of the employee had been issued to him by the Inspector, but--

(a) for the purposes of subparagraph (c) of paragraph (1) of this Regulation, the cumulative emoluments shall be taken to be the aggregate of the cumulative emoluments shown on the copies of the certificate prepared by the former employer and the gross emoluments paid by the new employer ; and

(b) where, as respects the certificate on the prescribed form referred to in the said paragraph (1), entry of particulars of the cumulative tax is required to be made thereon, that tax shall be taken for the purposes of the said entry to be the aggregate of the cumulative tax shown on those copies and any tax deducted by the new employer.

(6) If the employee objects to the disclosure to the new employer of his cumulative emoluments, he may deliver the two copies of the certificate prepared by the former employer to the Inspector before he commences his new employment, and the Inspector shall send in respect of the employee to the new employer a tax deduction card not stating the employee's cumulative tax-free allowances or cumulative emoluments or a stamp book not stating the employee's cumulative emoluments and direct that Regulation 21 shall apply to all payments of emoluments which the new employer makes to the employee.

(7) Retirement on pension shall not be treated as a cessation of employment for the purposes of this Regulation or of Regulation 21 if the emoluments are paid by the same person both before and after the retirement.

23. If the employer ceases to employ an employee for whom he holds a certificate of tax-free allowances, but in relation to whom, having regard to the provisions of paragraph (1) of Regulation 13, he has not made a return pursuant to that paragraph, the following provisions shall have effect :

(a) on the day on which the employment ceases the employer shall record on the certificate of tax-free allowances the date and the cumulative emoluments at that date and deliver it to the employee ;

(b) immediately on commencing his next employment the employee shall deliver the certificate of tax-free allowances to the new employer ;

(c) if the amount of the employee's tax-free allowances is less than the amount of his emoluments for the year (that amount being calculated by reference to the rate for the time being of such emoluments), the new employer shall forthwith send a return to the Inspector by whom tax deduction cards or stamp books are ordinarily issued to him stating--

(i) the employee's name ;

(ii) the employee's address ;

(iii) the official reference number shown on the certificate of tax-free allowances ;

(iv) the amount of the tax-free allowances stated on the certificate of tax-free allowances ;

(v) the manner in which payment of emoluments is made to the employee, that is to say, weekly, monthly or as the case may be ;

(vi) if he is authorised under Regulation 5 to make payment of tax by means of stamps, that he is so authorised,

and the provisions of subparagraphs (b), (c), (d) and (e) of paragraph (3) of Regulation 22 shall then apply save that the Inspector shall not be required to send the certificate of tax-free allowances as provided for in subparagraph (b) and the references in subparagraphs (c), (d) and (e) to the copies of the certificate prepared by the former employer shall be construed as references to the certificate of tax-free allowances ;

(d) if the employee objects to the disclosure to his new employer of his cumulative emoluments, he may deliver the certificate of tax-free allowances to the Inspector before he commences his new employment and the Inspector shall issue to the employee a new certificate of tax-free allowances not showing those emoluments.

24. (1) On the death of an employee in respect of whom he holds a tax deduction card or stamp book or in respect of whom a temporary tax deduction form has been prepared by the employer under subparagraph (c) of paragraph (3) of Regulation 22 or to whom the provisions of paragraph (2) of Regulation 25 apply, the employer shall forthwith send to the Inspector by whom tax deduction cards or stamp books are ordinarily issued to him the certificate (relating to cessation of employment) mentioned in paragraph (1) of Regulation 22 or in paragraph (6) of Regulation 25, as the case may require, and shall insert thereon the name and address of the personal representative of the deceased employee, if they are known to him.

(2) If any emoluments are paid by the employer after the date of the employee's death in respect of his employment with him, the employer shall, on making any such payment, deduct or repay tax as if the deceased employee was still in his employment at the date of the payment, and--

(a) if the amount of those emoluments and the date on which they will be paid are known to him at the time he completes the certificate mentioned in paragraph (1) of this Regulation, he shall include thereon the amount of the emoluments, the date on which they will be paid, and the amount of tax which will be deducted or repaid, and

(b) in any other case, he shall indicate on the certificate that a further payment of emoluments will be made by him.

(3) If the employer holds a certificate of tax-free allowances for the employee, he shall send it to the Inspector when he sends the certificate referred to in paragraph (1) of this Regulation.

25. (1) If the employer makes such payments of emoluments as are referred to in Regulation 8 to an employee from whom he has not received either a certificate of tax-free allowances or copies of a certificate made by a former employer under paragraph (2) of Regulation 22, the employer, on the occasion of the first such payment, shall forthwith send to the Inspector who issued to the employer the register referred to in Regulation 9 for the year, a return stating the name and address of the employee, the date on which his employment commenced, and such other particulars as may be necessary to secure the issue to the employee of the appropriate certificate of tax-free allowances, and stating, where the employer is authorised under Regulation 5 to make payment of tax by means of stamps, that he is so authorised.

(2) (a) During the period of four weeks or, in the case of an employee paid monthly, one month, from the commencement of the period in respect of which the first payment of the emoluments referred to in the foregoing paragraph is made or until earlier a certificate of tax-free allowances is received from the employee and a tax deduction card or stamp book is received from the Inspector, the employer, on making any payment of emoluments to the employee, shall deduct tax and keep records on an emergency card on the basis that the amount of tax-free allowances is £6 a week or, if the employee is paid monthly, is £26 a month.

(b) If, within the aforesaid period of four weeks or one month, the employer has not received from the employee the certificate of tax-free allowances and from the Inspector the tax deduction card or stamp book, he shall on the occasion of the payment of any emoluments thereafter deduct tax and keep records on an emergency card on the basis that the employee's tax-free allowances are nil and shall continue so to deduct and keep records until he receives a certificate of tax-free allowances from the employee and a tax deduction card or stamp book from the Inspector.

(3) Where the Inspector sends the certificate of tax-free allowances to the employee, he shall also send a tax deduction card or stamp book to the employer in respect of that employee and the employer shall enter thereon the particulars of emoluments and tax deducted as shown on the relevant emergency card.

(4) On making payments of emoluments to the employee after a tax deduction card relating to the employee sent under paragraph (3) of this Regulation has been received and the certificate of tax-free allowances has been received from the employee, the following provisions shall have effect for the purposes of Regulation 18--

(a) any cumulative emoluments entered on the tax deduction card by the Inspector shall be treated as if they represented emoluments paid by the employer, and

(b) the cumulative tax before the first of the said payments shall be taken to be the sum of any cumulative tax entered on the tax deduction card by the Inspector and any tax which the employer was liable to deduct from the employee's emoluments under paragraph (2) of this Regulation.

(5) Where the employer has received a stamp book in respect of the employee sent under paragraph (3) of this Regulation and a certificate of tax-free allowances from the employee, he shall record on the stamp book the amounts of the gross emoluments and tax entered on the emergency card and shall affix stamps to the stamp book equal in value to the amount of that tax.

(6) (a) Where paragraph (2) of this Regulation applies and the employer ceases to employ the employee before a tax deduction card or stamp book in respect of the employee has been received by him, he shall forthwith send to the Inspector a certificate on the form prescribed for the purposes of paragraph (1) of Regulation 22 and shall make on the prescribed form two copies of that certificate which he shall deliver to the employee on the date the employment ceases :

Provided that the said certificate--

(i) shall not contain particulars of the cumulative emoluments or cumulative tax but shall contain particulars of the emoluments paid and tax deducted by the employer, and

(ii) shall indicate that an emergency card was in use when the employment ceased.

(b) Immediately on commencing his next employment the employee shall deliver to his new employer the said two copies of the certificate and--

(i) the new employer shall insert on one copy of the certificate the address of the employee, the date on which the new employment commenced, and the manner in which payments of emoluments are made to the employee, that is to say, weekly, monthly or as the case may be, and

(ii) he shall forthwith send that copy to the Inspector by whom tax deduction cards or stamp books are ordinarily issued to him, with an indication, if the new employer is authorised under Regulation 5 to make payment of tax by means of stamps, that he is so authorised,

and paragraphs (2), (3), (4) and (5) of this Regulation shall apply as if the employee had not submitted to the new employer copies of a certificate by a former employer under paragraph (2) of Regulation 22.

(7) This Regulation shall not apply where--

(a) the employee performs the duties of his employment wholly outside the State, or

(b) the employee is outside the State and the emoluments are paid outside the State.

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

26. (1) Where emoluments are paid at regular intervals other than regular intervals of a week or a month, any payment of such emoluments shall be deemed for the purposes of these Regulations to be made on the date on which it would have been made if a payment had been made on the last day of the preceding year, but the employer shall record the actual date of every such payment.

(2) In applying the foregoing paragraph in relation to the year 1960-61, a reference to the 5th day of October, 1960, shall be substituted for the reference to the last day of the preceding year unless the intervals are intervals greater than six months.

27. Where under these Regulations tax is deductible otherwise than by reference to cumulative emoluments and cumulative tax, the amount of tax to be deducted in any week or income tax month shall be calculated by reference to the aggregate of the emoluments paid to the employee in that week or month.

28. Where the employer makes a payment to or for the benefit of the employee in respect of his tax, the amount of the emoluments which the employer pays to the employee shall be deemed for the purposes of deduction and repayment of tax under these Regulations to be such a sum as will include the amount assessable on the employee in respect of the payment made by the employer in respect of the employee's tax.

29. (1) If, owing to absence from work through sickness or other similar cause, the employee is entitled to receive no emoluments on the usual pay day, the employer shall, on application being made in person by the employee or his authorised representative, make such repayment of tax to the employee as may be appropriate, having regard to his cumulative emoluments at the date of the pay day in question and the corresponding cumulative tax.

(2) If, owing to absence from work otherwise than aforesaid, the employee is entitled to receive no emoluments on the usual pay day, the employer either--

(a) shall make any such repayment of tax to the employee as would be appropriate under paragraph (1) if the absence from work was due to sickness, or

(b) not later than the first usual pay day on which no emoluments will be payable to the employee, shall send, to the Inspector by whom tax deduction cards or stamp books are ordinarily issued to him, a notification of the employee's absence from work and of his intention to make no repayment to the employee under subparagraph (a) of this paragraph, and shall send with the notification a return containing the same particulars with respect to the employee as the employer would be liable to certify under paragraph (1) of Regulation 22 if the employment had ceased on the day on which emoluments were last paid to the employee ; and where the said notification and return are sent within the time limited in this subparagraph, the employer--

(i) shall be relieved of the liability to make any repayment under the provisions of subparagraph (a) of this paragraph ;

(ii) on the employee's return to work shall forthwith notify the Inspector; and

(iii) for the purpose of deducting or repaying tax on the occasion of any subsequent payment of emoluments to the employee during the year shall take into account the amount of any repayment which has been made under paragraph (4) of this Regulation of which he is notified by the Inspector.

(3) If, owing to absence from work for any cause, the employee, being an employee in relation to whom the employer holds a stamp book, is entitled to receive no emoluments on the usual pay day, the foregoing paragraphs of this Regulation shall not apply and the employer shall, not later than the first usual pay day on which no emoluments will be payable to the employee, send, to the Inspector by whom stamp books are ordinarily issued to him, a notification of the employee's absence from work and shall send with the notification a return containing the same particulars with respect to the employee as the employer would be liable to certify under paragraph (1) of Regulation 22 if the employment had ceased on the day on which emoluments were last paid to the employee ; and where the said notification and return are sent within the time limited in this paragraph, the employer, on the employee's return to work,--

(a) shall forthwith notify such return to work to the Inspector, and

(b) shall record on the stamp book the amount of any repayment which has been made under paragraph (4) of this Regulation of which he is notified by the Inspector.

(4) In the case of a person who has ceased to be employed or with respect to whom a notification and return have been sent under the provisions of paragraph (2) or paragraph (3) of this Regulation, any repayment which may be appropriate at any date, having regard to his cumulative emoluments at that date and the corresponding cumulative tax, shall be made to him by the Revenue Commissioners, and a person who has ceased to be employed shall, on applying for repayment, produce to the Inspector the copies of the certificate mentioned in Regulation 22 and such evidence of his unemployment as the Inspector may require.

30. (1) Within nine days from the end of the year the employer shall give to the employee a certificate showing the total amount of the emoluments paid by the employer to the employee during the year, the amount of the employee's tax-free allowances and the total net tax deducted from the emoluments.

(2) In the case of an employee taken into employment after the beginning of the year, the certificate shall include any emoluments paid to the employee by any previous employer during the year and any tax deducted from those emoluments.

(3) A certificate shall be given under this Regulation to every employee who is in the employer's employment on the last day of the year and from whose emoluments any tax has been deducted during the year.

(4) In the foregoing paragraphs of this Regulation any reference to a year shall be construed as including a reference to the period commencing on the 6th day of October, 1960, and ending on the 5th day of April, 1961, and as not including a reference to the year 1960-61.

PART V. PAYMENT AND RECOVERY OF TAX, ETC.

31. (1) Within nine days from the end of every income tax month the employer shall remit to the Collector all amounts of tax which he was liable under these Regulations to deduct from emoluments paid by him during that income tax month, reduced by any amounts which he was liable under these Regulations to repay during that income tax month.

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

(3) If the amount which the employer is liable to remit to the Collector under paragraph (1) of this Regulation exceeds the amount actually deducted by him from emoluments paid during the relevant income tax month, the Revenue Commissioners, on being satisfied by the employer that he took reasonable care to comply with the provisions of these Regulations and that the under-deduction was due to an error made in good faith, may direct that the amount of the excess shall be recovered from the employee, and where they so direct, the employer shall not be liable to remit the amount of the said excess to the Collector.

(4) If the amount which the employer is liable to remit to the Collector under paragraph (1) of this Regulation exceeds the amount actually deducted by him from emoluments paid during the relevant income tax month and the Revenue Commissioners are of the opinion that an employee has received his emoluments knowing that the employer has wilfully failed to deduct therefrom the amount of tax which he was liable to deduct under these Regulations, the Revenue Commissioners may direct that the amount of the excess shall be recovered from the employee, and where they so direct, the employer shall not be liable to remit the amount of the said excess to the Collector.

(5) If a difference arises between the employer and the employee as to whether the employer has deducted tax, or having regard to Regulation 28 is deemed to have deducted tax, from emoluments paid to the employee, or as to the amount of the tax that has been so deducted or is so deemed to have been deducted, the matter shall, for the purpose of ascertaining the amount of any tax to be recovered from the employee under paragraph (3) or (4) of this Regulation, be determined by the Special Commissioners.

(6) If the total of the amounts which the employer was liable to repay during any income tax month exceeds the total of the amounts which he was liable to deduct during that income tax month, he shall be entitled to deduct the excess from any amount which he is subsequently liable to remit to the Collector under paragraph (1) of this Regulation or to recover it from the Revenue Commissioners.

(7) A determination under paragraph (5) of this Regulation may be made by one Special Commissioner.

(8) Nothing in this or the next Regulation applies in relation to an employer who is for the time being authorised under Regulation 5 to make payment of tax by means of stamps.

32. (1) (a) If within nine days from the end of any income tax month the employer has remitted no amount of tax to the Collector under Regulation 31 for that income tax month 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 employee to whom he made any payment of emoluments or repayment of tax in the period from the preceding 6th day of April to the day (being the last day of an income tax month) 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 payments of emoluments made to him during that period ; and

(iii) any other matter affecting the calculation of the tax which the employer was liable under these Regulations to deduct or to repay to 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.

(2) In a case referred to in the foregoing paragraph the Collector shall ascertain, in like manner as the employer should, under 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 income tax months.

(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 31 for any income tax month, 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 month, and the provisions of this Regulation shall have effect accordingly.

33. Where an employer is for the time being authorised under Regulation 5 to make payment of tax by means of stamps, he shall send the appropriate part of each stamp book, with the appropriate stamps affixed thereto, to the Collector within nine days from the end of the period to which such part relates and, on receipt thereof, the Collector shall send to the employer a receipt on the prescribed form for the amount representing the value of the stamps affixed thereto.

34. (1) (a) If, within nine days from the end of the period to which a part of a stamp book relates, such part has not been received by the Collector and the Collector is unaware of the amount which the employer is liable to pay by means of stamps affixed to such part, 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 preceding 6th day of April to the day (being the last day of an income tax month) 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 payments of emoluments made to him during that period, and

(iii) any other matter affecting the calculation of the tax which the employer was liable under 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.

(2) In a case referred to in the foregoing paragraph, the Collector shall ascertain, in like manner as the employer should, under 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.

(3) A notice may be given by the Collector under paragraph (1) of this Regulation notwithstanding that he has received the part of a stamp book in question if he is not satisfied that stamps to the proper value have been affixed to such part, and the provisions of this Regulation shall have effect accordingly.

(4) If an amount which the employer is liable to deduct under paragraph (1) of Regulation 20 exceeds the amount actually deducted by him, the Revenue Commissioners, on being satisfied by the employer that he took reasonable care to comply with the provisions of these Regulations and that the underdeduction was due to an error made in good faith, may direct that the amount of the excess shall be recovered from the employee, and where they so direct, the employer shall be regarded as not having been liable to affix stamps in respect of such excess.

(5) If an amount which the employer is liable to deduct under paragraph (1) of Regulation 20 exceeds the amount actually deducted by him and the Revenue Commissioners are of the opinion that the employee has received his emoluments knowing that the employer has wilfully failed to deduct therefrom the amount of tax which he was liable to deduct under these Regulations, the Revenue Commissioners may direct that the amount of the excess shall be recovered from the employee and, where they so direct, the employer shall be regarded as not having been liable to affix stamps in respect of such excess.

(6) If a difference arises between the employer and the employee as to whether the employer has deducted tax from emoluments paid to the employee, or as to the amount of tax that has been so deducted, the matter shall, for the purpose of ascertaining the amount of tax to be recovered from the employee under paragraph (4) or (5) of this Regulation, be determined by the Special Commissioners.

(7) A determination under paragraph (6) of this Regulation may be made by one Special Commissioner.

35. (1) Within nine days from the end of the year the employer shall send to the Collector--

(a) either on the tax deduction card or the stamp book (as may be appropriate), or on such other form as the Revenue Commissioners may approve or prescribe, a return in respect of each employee showing the total amount of the emoluments paid by him to the employee during the year and the total net tax deducted from the emoluments,

(b) any temporary tax deduction forms used by him during the year and a return on the prescribed form in respect of those forms,

(c) any emergency cards used by him during the year under Regulation 25 and a return on the prescribed form in respect of those cards,

(d) a statement and declaration on the prescribed form showing the total net tax deducted or repaid by him in respect of every employee during the year,

(e) in relation to each employee, a statement and declaration on the prescribed form showing the total amount of any such payments made during the year as are referred to in section 6 of the Finance Act, 1958 (No. 25 of 1958), and

(f) in relation to an employee who is a director within the meaning of section 26 of the Finance Act, 1958 , or a person employed in an employment to which Part IV of that Act applies, a return on the prescribed form showing the total amount of any expenses incurred during the year by the employer in or in connection with the provision, for the employee, of any such services, benefits or facilities as are referred to in subsection (1) of section 24 of the said Act.

(2) Where the employer is a body corporate, the declaration and the certificate referred to in subparagraph (d) of paragraph (1) of this Regulation shall be signed either by the secretary or by a director of the body corporate.

(3) In the case of an employee taken into employment after the beginning of the year, the return made under paragraph (1) of this Regulation shall also show the total amount of any emoluments paid to the employee during the year by any previous employer and of any tax deducted from those emoluments.

(4) In the foregoing paragraphs of this Regulation any reference to a year shall be construed as including a reference to the period commencing on the 6th day of October, 1960, and ending on the 5th day of April, 1961, and as not including a reference to the year 1960-61.

36. (1) Section 162 of the Income Tax Act, 1918, as applied by section 11 of the act shall so apply subject to the following modifications :

(a) in subsection (1)--

(i) the expression " the collector " shall be construed as referring to the Collector,

(ii) the words " in accordance with the assessments and warrants delivered to him " shall be disregarded,

(iii) the words " the warrant delivered to him on his appointment " shall be construed as referring to the nomination given to the Collector on his being nominated by the Revenue Commissioners as the Collector,

(b) in subsection (2) the expressions " a collector " and " the collector " shall each be construed as referring to the Collector,

(c) in subsection (3) the expression " the collector " shall be construed as referring to the Collector or a person nominated by the Collector to represent him at the execution,

(d) in subsection (4) the reference to a distress levied by the collector shall be construed as referring to a distress levied by the Collector or a person nominated by the Collector to represent him at the execution,

(e) in subsection (5) the requirement of appraisal of the distress shall be disregarded.

(2) Section 7 of the Finance Act, 1923 (No. 21 of 1923), as applied by section 11 of the act shall so apply subject to the modification that the words " the Collector by whom the sum so in default is collectable " in subsection (1) shall be construed as referring to the Collector.

(3) Section 11 of the Finance Act, 1924 (No. 27 of 1924), as applied by section 11 of the act shall so apply subject to the following modifications in subsections (1) and (2) :

(a) the words " duly assessed under the Income Tax Acts " in each subsection shall be disregarded,

(b) the words " the collector or other officer of the Revenue Commissioners duly authorised to collect the said tax " in each subsection shall be construed as referring to the Collector.

37. (1) Upon request made to him at any premises of an employer by an authorised officer, any person, being the employer or a person employed by the employer at the premises, shall produce to the authorised officer for inspection all such wages sheets, certificates of tax-free allowances, tax deduction cards, stamp books and other documents and records whatsoever relating to the calculation or payment of the emoluments of employees of the employer or the deduction of tax therefrom as may be in such person's power, possession or procurement.

(2) Where in pursuance of this Regulation an authorised officer requests production of any documents or records, he shall, on request, show his authorisation for the purposes of this Regulation to the person concerned.

(3) In this Regulation " authorised officer " means an officer of the Revenue Commissioners authorised by them in writing for the purposes of this Regulation.

38. If the employer dies, anything which he would have been liable to do under these Regulations shall be done by his personal representative, or, in the case of an employer who paid emoluments on behalf of another person, by the person succeeding him or, if no person succeeds him, the person on whose behalf he paid emoluments.

39. (1) This Regulation applies where there has been a change in the employer from whom an employee receives emoluments in respect of his employment in any trade, business, concern or undertaking, or in connection with any property, or from whom an employee receives any annuity or pension.

(2) Where this Regulation applies, the change shall not be treated as a cessation of employment for the purposes of Regulation 22 or Regulation 23, but, in relation to any matter arising after the change, the employer after the change shall be liable to do anything which the employer before the change would have been liable to do under these Regulations if the change had not taken place :

Provided that the employer after the change shall not be liable for the payment of any tax which was deductible from emoluments paid to the employee before the change took place.

PART VI. ASSESSMENT.

40. Nothing in this Part of these Regulations shall apply to assessments in respect of emoluments for any year before the year 1960-61.

41. (1) Any assessment on an employee in respect of emoluments may be made in any income tax district and shall be valid notwithstanding that the employee was not in that district, or in the State, during the year in which the assessment was made.

(2) All the emoluments of an employee may be included in one assessment.

42. The Inspector may give notice to the employer requiring him to send a return of any emoluments paid by him to any employee for any year, being emoluments which are not paid to the employee until after the end of that year, and any such return shall be sent to the Inspector within the time limited in the notice.

43. The Inspector shall, in any case where he does not propose to make an assessment on an employee with respect to whom tax was deducted during a year, send to the employee, as soon as possible after the end of the year, a statement of his liability for the year and showing how it is proposed to deal with any overpayment or underpayment of tax.

44. (1) If the employee is aggrieved by the assessment, he may give notice in writing thereof to the Inspector, stating the ground of his objection, within twenty-one days of the date of the notice of assessment.

(2) On receipt of any such notice of objection, the Inspector, on proof to his satisfaction, may agree with the employee as to the correct amount to be assessed and may thereupon amend the assessment. Notice of the amended assessment shall then be served on the employee by the Inspector.

(3) In default of agreement as aforesaid the employee, on giving notice in writing to the Inspector, may appeal to the Special Commissioners and the provisions of the Income Tax Acts relating to the determination of appeals against assessments and to the rehearing of appeals by a judge of the Circuit Court and to the statement of a case for the High Court on a point of law shall apply accordingly.

(4) The Inspector, if he is of the opinion that agreement as aforesaid is unlikely to be reached and that the employee is unreasonably delaying giving notice of appeal, may, on giving notice to the employee, treat the notice of objection as a notice of appeal to the Special Commissioners, and refer it to them accordingly, and the provisions of the Income Tax Acts relating to the determination of appeals against assessments and to the re-hearing of appeals by a judge of the Circuit Court and to the statement of a case for the High Court on a point of law shall apply accordingly.

45. (1) If the tax payable under the assessment exceeds the total net tax deducted from the employee's emoluments during the year, the Inspector, instead of taking the excess into account in determining the appropriate amount of tax-free allowances for a subsequent year, may require the employee to remit it to the Collector, and, where the Inspector so requires, the employee shall remit the excess accordingly on demand made by the Collector.

(2) For the purpose of determining the amount of any such excess, any necessary adjustment shall be made to the aforesaid total net tax in respect of any tax overpaid or remaining unpaid for any year (including a year before the year 1960-61).

46. (1) Any tax which is to be remitted to the Collector by any employee may be recovered in the manner provided by the Income Tax Acts.

(2) Any tax which is to be remitted to the Collector under paragraph (1) of Regulation 45, shall be remitted within fourteen days of the date on which the Collector first makes application therefor.

GIVEN this 10th day of February, 1960.

S. RÉAMONN,

Revenue Commissioner.

EXPLANATORY NOTE.

These Regulations, which come into force on the 6th April, 1960, prescribe the manner in which deduction of Income Tax from salaries and wages under the " Pay As You Earn " system is to operate. This new system, which will commence on the 6th October, 1960, was outlined in the White Paper (Pr. 5276) which the Minister for Finance presented to each House of the Oireachtas in November, 1959.

Part I of the Regulations contains definitions. It covers also the instance where an employee works under the management of a person who is not his immediate employer. In such circumstances the person under whose management the employee works will be deemed to be his employer. General provision is included for the operation of Pay As You Earn by means of stamps, instead of tax deduction cards, in relation to employees who are in receipt of a fixed salary or wage.

Part II provides for the maintenance of registers of employers and of employees. The register of employers is to be kept by the Revenue Commissioners and registers of employees by employers.

Part III requires Inspectors of Taxes to determine the amount of tax-free allowances appropriate to an employee; and to furnish the employee with a notice of this determination and also with a certificate of tax-free allowances to give to his employer. On receipt of such certificate the employer is to send a return to the Inspector if the employee's emoluments exceed his tax-free allowances. The Inspector will then forward a tax deduction card on which the employer will record the tax deductions he makes from the employee's emoluments ; or a stamp book if its use has been authorised. An employee may appeal to the Special Commissioners from any determination by an Inspector of tax-free allowances.

Part IV concerns the deduction and repayment of tax under Pay As You Earn. Deductions and repayments are to be made by reference to cumulative emoluments, cumulative tax already deducted and the tax-free allowances of employees as recorded on their tax deduction cards. The required particulars are to be entered on the tax deduction cards on the occasion of every payment of emoluments. Where the working of Pay As You Earn by means of stamp books has been authorised, tax is to be deducted on a non-cumulative basis and tax stamps, to the value of the tax deducted, affixed to the employee's stamp book.

There are provisions about changes of employment and for deduction of tax on a temporary basis where the employee does not produce a certificate of tax-free allowances. At the end of each year employers are required to give every employee from whom tax was deducted a certificate of his emoluments, his tax-free allowances and the net tax deducted.

Part V deals with payment and recovery of tax deducted under Pay As You Earn. Employers are required within nine days from the end of every " Income Tax month " (i.e., a month beginning on the 6th day of any calendar month) to pay over to the Collector all tax which they were liable to deduct under Pay As You Earn, less any tax which they were liable to repay, during that month. Stamp books are to be sent to the Collector within nine days from the end of the period to which the books relate.

Within nine days from the end of the year employers are to send to the Collector returns, on tax deduction cards or stamp books (as appropriate), showing total emoluments paid to the employee during the year and total net tax deducted.

The statutory enactments for recovery of Income Tax charged under Schedule E were applied by Section 11 of the Finance (No. 2) Act, 1959 , subject to any modifications to be specified by Regulations, to tax liable to be deducted by employers under Pay As You Earn. The necessary verbal modifications are set out in Regulation 36.

Employers are required, when requested to do so by an authorised officer, to produce for inspection wages sheets, tax deduction cards and any other record in regard to payment of emoluments and deduction of tax from them.

Part VI provides for the making of assessments on employees in special cases and, where assessments are not made, for supplying employees with statements of their liability. This Part also provides for an appeal to the Special Commissioners and to the Circuit Court--and to the High Court on a point of law--against an assessment by an Inspector; and for adjustment where underpayments of tax occur.