Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

I move amendment No. 7:

In page 13, to delete lines 20 to 22 and substitute the following:“(4) Where an amount is treated as emoluments in a year of assessment under this section—

(a) for the purposes of section 470, the amount (referred to in this subsection and subsection (5) as the ‘notional payment amount’) shall be treated as if it was an amount paid—

(i) under the relevant contract concerned to an authorised insurer by the relevant employee concerned, and

(ii) in the year of assessment,

and

(b) subject to subsection (5), notwithstanding that the payment of the notional payment amount is deemed under paragraph (a) to occur after 6 April 2001—

(i) section 470(3) shall not apply to the notional payment amount, and

(ii) section 470(2) shall apply to the notional payment amount as if the relevant employee concerned had made a payment under a relevant contract of that amount to an authorised insurer.

(5) Where an amount (in this subsection referred to as the ‘actual payment amount’) is paid under the relevant contract concerned by the relevant employee concerned or an individual connected to that employee—

(a) section 470(2) shall apply subject to the following modifications:

(i) a reference to a payment shall be construed as a reference to an amount being the sum of the notional payment amount and the actual payment amount;

(ii) the amount by which the income tax to be charged on the individual for the year of assessment, other than in accordance with section 16(2), is reduced shall itself be reduced by the percentage of the relevant contract price which the actual payment amount represents,

and

(b) section 470(3) shall apply subject to the following modifications:

(i) a reference to a payment shall be construed as a reference to an amount being the sum of the notional payment amount and the actual payment amount;

(ii) the amount the individual shall be entitled to deduct and retain shall be reduced by the percentage of the relevant contract price which the notional payment amount represents.”.”.

See this speech in context