S.L. 372.14 Art. 7AApplication of the FSS Overtime Tax Deduction Method.

(1)When a payer pays emoluments that represent qualifying overtime income he shall deduct from them tax at the rate of fifteen cents (€0.15) of every one euro (€1).

(2) Saving the other provisions of this rule -

(a) qualifying overtime income from which tax has been so deducted shall not form part of the payee’s chargeable income and shall not be declared by that individual in any return filed in accordance with article 10 of the Act;

(b) the tax deducted in accordance with this rule shall be final and shall not be available as a credit or set off against the tax liability of any person or as a refund.

(3) A payee may, at any time, give instructions to the payer not to apply the FSS Overtime Tax Deduction Method to his overtime income and may, at any time, revoke such instructions. A notice for the purpose of this sub-rule shall be given in writing on such form as may be approved by the Commissioner.

(4) Instructions given to a payer in accordance with this rule shall have effect as from the date when the notice giving such instructions is delivered to the payer and shall cease to have effect as from the date on which the notice of revocation is delivered to the payer.

(5) Any income derived for overtime that a payee performs while instructions given as aforesaid have effect shall not be treated as qualifying overtime income and the provisions these rules shall apply in respect of such income without reference to sub-rules (1) and (2) and without reference to article 90B of the Income Tax Act and to the Tax on Overtime Rules.

(6) A payee may, if he so elects, declare qualifying employment income from which tax has been deducted in accordance with sub-rule (1) in a return filed in accordance with article 10 of the Act together with his other income for the year of assessment in question, and in that case that income shall be treated as part of the payee’s chargeable income and subject to tax at the rates applicable to that payee in accordance with article 56 of the Income Tax Act without reference to article 90B of that Act. Any tax deducted from the qualifying overtime income in such a case shall be available for set-off in accordance with rule 26.

(7) When an individual to whom article 12A of the Act applies derives qualifying overtime income, and it results to the Commissioner that an election mentioned in sub-rule (6) produces a benefit to that individual, sub-rule (6) shall apply as if that individual has made that election and declared that qualifying overtime income in a return filed in accordance with article 10 of the Act.