Dáil Éireann Debate, Tuesday - 20 February 2018
153. Deputy Michael McGrath asked the Minister for Finance the reason proprietary directors do not receive credit for PAYE paid when calculating a late filing charge; his plans to review same; and if he will make a statement on the matter. [8566/18]
View answerI am advised by Revenue that a proprietary director is a director of a company who is the beneficial owner of, or is able either directly or indirectly to control, more than 15% of the ordinary share capital of the company. As an office holder, a director is taxable on his or her directorship income under Schedule E and is subject to deductions under the PAYE system.
A director is a ‘chargeable person’ for income tax purposes and is obliged to submit an income tax return each year, notwithstanding the fact that all of his/her income may have been taxed at source under the PAYE system.
I am further advised that section 1084 of the Taxes Consolidation Act 1997 imposes a surcharge on any tax payer for the late filing of a tax return.
In the case of a proprietary director, the surcharge is based on the income tax liability of the director before any credit for PAYE tax paid by the director. The absence of this provision would render the surcharge an ineffective deterrent to late filing by directors.
