This is a matter for the Revenue Commissioners. I am advised by the Commissioners that this credit is granted under Section 472 Taxes Consolidation Act 1997. There are certain conditions that need to be met for the child of the employer to obtain the credit. These are:
The employee is:
a "specified employed contributor" as defined in Section 472 or that the Income Tax (Employments) (Consolidated) Regulations 2001 have been complied with by her employer
The employee is:
a full time employee (i.e. is required to devote, throughout the year of assessment, substantially the whole of his/her time to the duties of the office or employment and the individual does in fact do so) and
The amount of emoluments paid to the employee in the year of assessment are not less than €4,572.
The Income Tax (Employments) (Consolidated) Regulations 2001 set out how PAYE is to be operated and list in detail all of actions required in relation to an employee. The person claiming the credit is only entitled to the credit if the connected person who is paying the wages has operated the regulations correctly.
An examination of the records has commenced and will conclude shortly. The PAYE credit will be allowed if all is in order as the Regulations require.