Róisín Shortall
Question:153 Ms Shortall asked the Minister for Finance the sanctions, if any, open to the Revenue Commissioners against employers who refuse to issue a P45 to a former employee. [25548/99]
Written Answers. - Tax Regulations.
I am informed by the Revenue Commissioners that the operation of the PAYE system is governed by the Income Tax (Employments) Regulations 1960 (S.I. No 28 of 1960). Section 987 of the Taxes Consolidation Act, 1997, provides for penalties for failure to comply with the regulations.
Regulation 22 requires an employer to prepare and issue a Form P45 (parts 2 and 3) to an employee on the date the employment ceases. Where an employer does not comply with this requirement, he or she shall be liable to a penalty of £1,200. In addition, where the employer is a body of persons, the secretary of the body shall be liable to a separate penalty of £750.
Where the failure to issue a P45 raises Revenue concerns regarding the employer's operation of the PAYE system, it is open to Revenue to undertake an audit of the employer's PAYE system.