Social Welfare and Pensions (Miscellaneous Provisions) Act 2013

6.

Contributions by certain employed contributors

6. (1) Section 2(1) of the Principal Act is amended—

(a) in the definition of “reckonable emoluments” (amended by section 8 of the Social Welfare and Pensions Act 2012) by substituting “self-employed contributor or a person to whom Chapter 5B of Part 2 applies,” for “self-employed contributor,”, and

(b) in the definition of “reckonable income” (amended by section 8 of the Social Welfare (Miscellaneous Provisions) Act 2008) by substituting “a self-employed contributor, an optional contributor or, subject to Chapter 5B of Part 2, a person to whom that Chapter of that Part applies,” for “a self-employed contributor or an optional contributor,”.

(2) Section 6 of the Principal Act is amended—

(a) in subsection (1)—

(i) in paragraph (d) by substituting “voluntary contributors,” for “voluntary contributors, and”, and

(ii) by inserting the following after paragraph (d):

“(da) contributions under Chapter 5A of Part 2,

(db) contributions under Chapter 5B of Part 2, and”,

and

(b) in subsection (2) by substituting “optional contributions, voluntary contributions and contributions under Chapters 5A and 5B of Part 2” for “optional contributions and voluntary contributions”.

(3) (a) Part 2 of the Principal Act is amended by inserting the following after Chapter 5A (inserted by section 14 of the Act of 2010):

“CHAPTER 5B

Contributions by Certain Employed Contributors

Application of Chapter 5B

30E. (1) This Chapter applies to an employed contributor who, in a contribution year, receives income referred to in subsection (2) and who—

(a) has attained the age of 16 years but has not attained pensionable age, and

(b) is employed in any one or more of the employments specified in Article 81, 82, 83 or 84 of the Regulations of 1996.

(2) The income received by an employed contributor in a contribution year to which subsection (1) refers is one or both of the following as the case may be:

(a) reckonable emoluments;

(b) reckonable income, where such reckonable income includes income to which—

(i) Chapter 3 of Part 4, or

(ii) Part 43,

of the Act of 1997 applies.

Contribution payable by person to whom Chapter 5B applies

30F. (1) An employed contributor to whom this Chapter applies shall, in addition to any employment contribution which that person is liable to pay under Chapter 2 of Part 2 or regulations made under that Chapter, be liable to a contribution at the rate of 4 per cent of any reckonable emoluments and reckonable income referred to in section 30E and received in a contribution year.

(2) A contribution payable in accordance with this Chapter shall be disregarded in determining whether the contribution conditions for any benefit are satisfied.

(3) Regulations may provide for adjustments in the calculation of amounts payable in respect of liability for contributions under this Chapter to facilitate computation and for the elimination from such contributions of amounts of not more than 5 cent and for the rounding up of amounts of more than 5 cent but less than 10 cent to 10 cent.

(4) Where, for a year of assessment (within the meaning of the Tax Acts), the Revenue Commissioners and an employer enter into an agreement under a specified provision of the Act of 1997 whereby the employer will account to the Revenue Commissioners, in accordance with that provision, in respect of the income tax due on qualifying emoluments (within the meaning of that provision) and where that agreement is not null and void, then in respect of those qualifying emoluments—

(a) the employer—

(i) as part of that agreement and in so far as the qualifying emoluments comprise reckonable emoluments to which the agreement applies, of an employed contributor to whom this Chapter applies, shall pay a contribution at a rate of 4 per cent in respect of the aggregate of the amount of those reckonable emoluments and the amount of income tax payable under the agreement in respect of them, and

(ii) notwithstanding Article 7 of the Regulations of 1996, shall not be entitled to recover from an employed contributor any part of a contribution paid in accordance with subparagraph (i),

and

(b) a contribution paid in accordance with paragraph (a)(i) shall be disregarded in determining whether the contribution conditions for any benefit are satisfied.

(5) In subsection (4) ‘specified provision’ means such provision as may be prescribed for the purposes of that subsection.

Regulations providing for collection of contributions under Chapter 5B etc.

30G. (1) For the purposes of the contribution payable in accordance with this Chapter, regulations may provide for—

(a) the time and manner of payment of such contributions,

(b) the collection and the recovery of and the furnishing of details in relation to such contributions,

(c) the charging of interest on arrears of such contributions,

(d) the waiving of interest due on arrears of such contributions,

(e) the estimation of amounts due in respect of such contributions and appeals in relation to those estimates,

(f) the deduction, by an employer from the reckonable emoluments of an employed contributor to whom this Chapter applies, of any contribution payable under this Chapter reasonably believed by the employer to be due by the contributor, and adjustment in any case of over-deduction, and

(g) any matter ancillary or incidental to any of the matters referred to in paragraphs (a) to (f).

(2) Without prejudice to the generality of subsection (1), regulations under that subsection may provide for the assignment of any function relating to a matter referred to in that subsection to the Collector-General or any other specified person.

(3) The provisions of any enactment or instrument made under any enactment relating to—

(a) the estimation, collection and recovery of income tax (including the provisions relating to the offset of taxes and appropriation of payments in Part 42 of the Act of 1997) or the inspection of records for those purposes,

(b) appeals in relation to income tax, or

(c) the publication of names of persons under section 1086 of the Act of 1997,

shall apply in relation to contributions payable under this Chapter in respect of reckonable emoluments that the Collector-General is obliged to collect as if the contributions were an amount of income tax that the employer was liable to remit to the Collector-General under the Income Tax (Employments) (Consolidated) Regulations 2001 ( S.I. No. 559 of 2001).

(4) Other than in the case of the class or classes of employed contributors to whom this Chapter applies that may be prescribed, contributions payable in accordance with this Chapter for a contribution year in respect of reckonable income shall be assessed, charged and paid in all respects as if they were an amount of income tax and they may be stated in one sum (in this subsection referred to as the ‘aggregated sum’) with the income tax contained in any computation of or assessment to income tax made by or on that employed contributor for the year of assessment (within the meaning of the Income Tax Acts) which coincides with the contribution year and for this purpose the contributions payable in accordance with this Chapter may be so stated notwithstanding that there is no amount of income tax contained in that computation or assessment and all the provisions of the Income Tax Acts, other than any such provisions in so far as they relate to the granting of any allowance, deduction or relief, apply as if the aggregated sum were a single sum of income tax.

(5) (a) Subject to paragraph (b), where an election made or deemed to be made under section 1018 of the Act of 1997 has effect for the year of assessment the contributions payable under this Chapter by a wife shall be charged, collected and recovered as if they were the contributions of her husband.

(b) The question as to the amount of the contributions payable under this Chapter in respect of the husband or wife is not affected by this subsection.

(6) (a) Subject to paragraph (b), where an election made or deemed to be made under section 1031D of the Act of 1997 has effect for the year of assessment the contributions payable under this Chapter by the civil partner, who is not the nominated civil partner, shall be charged, collected and recovered as if they were the contributions of the nominated civil partner.

(b) The question as to the amount of the contributions payable under this Chapter in respect of each civil partner in a civil partnership is not affected by this subsection.

(7) In any proceedings instituted by virtue of this Act, a certificate purporting to be signed by an officer of the Revenue Commissioners or by any officer duly appointed by the Minister in that behalf which certifies that an amount in respect of contributions payable in accordance with this Chapter is due and payable by the defendant shall be evidence until the contrary is proved that that amount is so due and payable.”.

(b) Paragraph (a), in so far as it relates to liability for a contribution under section 30F(1) of the Principal Act (inserted by that paragraph), applies—

(i) in respect of any reckonable emoluments received by a person to whom Chapter 5B of Part 2 (inserted by paragraph (a)) of the Principal Act applies on or after the commencement of this section, and

(ii) in respect of any reckonable income received by a person to whom Chapter 5B of Part 2 (inserted by paragraph (a)) of the Principal Act applies—

(I) in respect of the contribution year commencing on 1 January 2013, and

(II) in respect of each subsequent contribution year.

(4) Section 34 of the Principal Act is amended by substituting “optional contributions or contributions under Chapter 5A or 5B of Part 2” for “optional contributions”.

(5) Section 38A(5) of the Principal Act is amended in the definition of “contributions” (amended by section 15 of the Social Welfare Act 2010) by inserting the following:

“(f) contributions under Chapter 5A or 5B of Part 2.”.

(6) Section 261 of the Principal Act is amended by substituting the following for subsection (1) (amended by section 31 of the Social Welfare and Pensions Act 2007):

“(1) Information held by the Minister for the purposes of this Act (including the purpose of collection by the Revenue Commissioners of employment and self-employment contributions and contributions under Chapter 5A or 5B of Part 2) may be transferred by the Minister to the Revenue Commissioners, and—

(a) information held by the Revenue Commissioners for the purposes of this Act or the Income Tax Acts relating to—

(i) employers,

(ii) reckonable earnings of employed contributors,

(iii) reckonable income or reckonable emoluments of self-employed contributors,

(iv) remuneration of persons to whom Chapter 5A of Part 2 applies,

(v) income of persons to whom Chapter 5B of Part 2 applies, or

(vi) any payments made under this Act,

or

(b) information contained in declarations made in accordance with Regulation 3 of the Income Tax (Relevant Contracts) Regulations 2000 ( S.I. No. 71 of 2000),

may be transferred by the Revenue Commissioners to the Minister.”.

(7) Section 300(2)(a) of the Principal Act is amended—

(a) in subparagraph (xi) by substituting “self-employment,” for “self-employment, or”, and

(b) by inserting the following after subparagraph (xii):

“(xiii) as to whether a contribution is or was payable in accordance with Chapter 5A or 5B of Part 2, or

(xiv) as to the rate of contribution which is or was payable in accordance with Chapter 5A or 5B of Part 2,”.

(8) Section 341 of the Principal Act is amended by substituting the following for subsections (1) and (2):

“(1) Notwithstanding the assignment by—

(a) any regulations under section 17(1) to the Collector-General or any other person of any function referred to in that section in relation to employment contributions,

(b) any regulations under section 23(1) to the Collector-General or any other person of any function referred to in that section in relation to self-employment contributions, or

(c) any regulations under section 30G(1) to the Collector-General or any other person of any function referred to in that section in relation to contributions under Chapter 5B of Part 2,

all sums due to the Social Insurance Fund, other than in accordance with section 336, shall be recoverable as debts due to the State and, without prejudice to any other remedy, may be recovered by the Minister as a debt under statute or simple contract debt in any court of competent jurisdiction.

(2) Notwithstanding section 272, or any provision in any other enactment specifying the period within which proceedings may be commenced to recover a debt under statute or simple contract debt, any proceedings for the recovery of any sums due to the Social Insurance Fund by way of—

(a) employment contributions under section 13(1),

(b) self-employment contributions under section 21(1),

(c) contributions under Chapter 5A of Part 2, or

(d) contributions under Chapter 5B of Part 2,

may be brought and shall be maintainable at any time.”.

(9) Part 3 of Schedule 1 to the Principal Act is amended by substituting the following for paragraph 5 (amended by section 26 of the Act of 2010):

“5. A person who is employed in any one or more of the employments specified in Article 81, 82, 83 or 84 of the Regulations of 1996.”.