Income Tax (Employments) Regulations, 1984.

S.I. No. 67/1984 - Income Tax (Employments) Regulations, 1984. S.I. No. 67 of 1984. INCOME TAX (EMPLOYMENTS) REGULATIONS, 1984. The Revenue Commissioners, in exercise of the powers conferred upon them by section 127 of the Income Tax Act, 1967 (No. 6 of 1967), hereby make the following Regulations: 1. (1) These Regulations may be cited as the Income Tax (Employments) Regulations, 1984. (2) These Regulations shall come into operation on the 6th day of April, 1984. 2. The Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ), are hereby amended— ) in Regulation 25 (2)— (i) by the substitution of the following subparagraph for subparagraph ( ) During the period of four weeks or, in the case of an employee paid monthly, one month, from the day on which an employee referred to in the foregoing paragraph first holds an employment with the employer in a year or until earlier a certificate of tax-free allowances is received from the employee and a tax deduction card is received from the Inspector, the employer, on making any payment of emoluments to the employee, shall deduct tax at the lowest rate at which an individual's taxable income is chargeable to tax in the year and keep records on an emergency card on the basis that the amount of tax-free allowances is— (i) an amount per week equal to one-fifty-second of the deduction specified in paragraph ( ) of section 138 of the Income Tax Act, 1967 , as it applies for the year, or (ii) if the employee is paid monthly, an amount equal to one-twelfth of the aforementioned deduction: Provided that in determining the amount of any tax-free allowance under clause (i) or (ii) any part of a pound shall be treated as a whole pound.", and (ii) by the substitution of the following subparagraph for subparagraph ( ) and the Table thereto: ) 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, he shall thereafter, until he receives a certificate of tax-free allowances from the employee and a tax deduction card from the Inspector, on making any payment of emoluments to the employee, deduct tax and keep records in accordance with the subsequent provisions of this subparagraph, that is to say: (i) in the period of four weeks, or, in a case where the employee is paid monthly, one month, commencing on the day after the end of the period mentioned in paragraph (2) ( ), deduct tax at the lowest rate at which an individual's taxable income is charged to tax in the year, (ii) in the next period of four weeks, or, in a case where the employee is paid monthly, one month, deduct tax at the lowest rate, apart from the rate mentioned in clause (i), at which an individual's taxable income is so charged to tax, (iii) in the next period of four weeks, or, in a case where the employee is paid monthly, one month, deduct tax at the lowest rate, apart from the rates mentioned in clauses (i) and (ii), at which an individual's taxable income is so charged to tax, and so on for each subsequent period of four weeks or one month, as the case may be, until the highest rate at which an individual's taxable income is so charged to tax is reached and thereafter tax shall be deducted at that highest rate, and the employer shall keep records on an emergency card on the basis that the employee's tax-free allowances are nil.", ) in Regulation 53 (1), by the substitution of "five pounds" for "one pound", and the said Regulation 53 (1), as so amended, is set out in the Table to this Regulation. If a casual employee does not on the occasion of any period of casual employment deliver his daily tax deduction card to his employer, the employer shall, on making any such payment of emoluments as is referred to in Regulation 8 to the employee, deduct tax at the standard rate and keep records on a daily emergency card on the basis that the amount of the employee's tax-free allowances is five pounds a day, shall make on the prescribed form a copy of the duly completed daily emergency card, and at the end of the period of casual employment shall forthwith send the daily emergency card to the Inspector by whom the notice of registration referred to in Regulation 8 was issued and give the copy to the employee. GIVEN this 13th day of March, 1984. L. REASON, Revenue Commissioner. EXPLANATORY NOTE. Regulation 25 of the Income Tax (Employments) Regulations, 1960, provides the "emergency basis" upon which a new employee is taxed under the PAYE system in respect of his earnings in the period before his employer has received the appropriate documentation (tax-free allowance certificate and tax deduction card). The documentation becomes available to the employer only after the employee has submitted a completed return of income to the Inspector of Taxes. The Regulations referred to are also concerned with the deduction of tax under PAYE from emoluments of casual employees. As regards the PAYE emergency basis, the new Regulations— ) fix the provisional tax-free allowances to be granted in the first four weeks or one month, as the case may be, of the new employment at one-fifty-second of the single personal allowance for the relevant year of assessment where the employee is paid on a weekly basis or at one-twelfth of that allowance where the employee is paid monthly, and ) tie the rates at which tax is to be deducted to the rates of income tax in force for the purpose of charging an individual's taxable income to tax for the relevant year of assessment. The Regulations also provide that, in the case of a casual employee who does not produce his daily tax deduction card to his employer, the amount of his provisional tax-free allowance is increased from £1 per day to £5 per day. The Regulations have effect as from 6 April, 1984.