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ROI Income Tax v Tax Debt Warehousing Scheme

ROI Tax – Proprietary Directors beware!


This a reminder to all proprietary directors out there.


Proprietary directors of companies must file a self-assessment return, with a surcharge incurred if the return is not filed on time. Revenue have confirmed that proprietary directors cannot claim a credit for PAYE deducted in their 2020 Income tax calculations and in their 2021 Preliminary tax liabilities where the employing company has participated in the Tax Debt Warehousing Scheme for its PAYE debt and not paid it to Irish Revenue. For completeness, employees who are not proprietary directors/beneficial owners will obtain a full credit for PAYE.


Revenue’s response has been that where a proprietary director is eligible for income tax debt warehousing, then they can warehouse all liabilities including any PAYE liabilities.

Whilst the Institutes are following up this matter with Revenue we understand the above remains the position at present.


The above is going to impact the already hard hit SME sector business owners as we understand proprietary directors of approx. 52,000 companies in the Tax Debt Warehousing Scheme may not be entitled to a PAYE tax credit when they file their upcoming 2020 Income tax returns.


Please note that this post is generic in nature therefore always seek specific professional advice. Farrell & Farrell do not accept any liability for any direct or indirect loss arising from reliance placed herein.




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