S.I. No. 292/1974:

INCOME TAX (EMPLOYMENTS) (No. 2) REGULATIONS, 1974.

INCOME TAX (EMPLOYMENTS) (No. 2) REGULATIONS, 1974.

The Revenue Commissioners, in exercise of the powers conferred on them by section 127 of the Income Tax Act, 1967 (No. 6 of 1967), hereby make the following Regulations :

1. These Regulations may be cited as the Income Tax (Employments) (No. 2) Regulations, 1974.

2. The Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), are hereby amended

( a ) in Regulation 2(1)--.

(i) by the substitution of "rates" for "rate" and the deletion of ", with due regard to any earned income relief," in the definition of "cumulative tax",

(ii) by the deletion of the definition of "earned income relief", and

(iii) by the deletion of ",increased by any earned income relief relative thereto" in the definition of "tax free allowances",

( b ) in Regulation 11

(1) by the substitution for paragraph (1) of--

"(1) The Inspector may determine that tax shall be deducted at a rate or rates other than the reduced rate from all the emoluments or taxable emoluments, as may be appropriate, if--

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

( b ) the reliefs and the benefit of the reduced rate which will operate to reduce the tax on those emoluments are offset by an adjustment in respect of tax remaining unpaid for a previous year; or

( c ) having regard to the employee's total income, tax is chargeable at a rate or rates other than the reduced rate.", and

(2) by the substitution in paragraph (2) of "from all the emoluments at a rate or rates other than the reduced rate" for "at the standard rate",

( c ) in Regulation 18 (7)

(i) by the substitution of "from all the emoluments by reference to a rate or rates other than the reduced rate" for "at the standard rate from any emoluments", and

(ii) by the substitution of "deduct tax by reference to the said rate or rates" for "deduct tax at the standard rate",

( d ) in Regulation 25 (2) by the insertion of "at the reduced rate" after "deduct tax" in both places where it occurs.

3. The Income Tax (Employments) (No. 2) Regulations, 1960 ( S.I. No. 166 of 1960 ), are hereby amended

( a ) in Regulation 49 (1) by the substitution of "at the reduced rate or at the standard rate as may be determined by the inspector" for "by reference to the rate of tax for the year, with due regard to any earned income relief",

( b ) in Regulation 53 (1) by the insertion of "at the reduced rate" after "deduct tax".

4. The Income Tax (Employments) Regulations, 1970 ( S.I. No. 223 of 1970 ), are hereby revoked.

GIVEN this 26th day of September, 1974.

J. F. RICHARDSON,

Revenue Commissioner.

EXPLANATORY NOTE.

These Regulations amend the existing PAYE Regulations so as to take account of the new method of charging income tax for 1974-75 and later years. Under the new system, earned income relief is replaced by way of a reduced rate of tax charge and higher personal allowances. Sur-tax is abolished and replaced by higher rates of income tax.

The present regulations provide for appropriate amendments in the existing Regulations.