Republic of Ireland: Redundancy Payments Scheme - Redundancy Rebates and Tax Payment Difficulties

Written by Ian Congreave - Filed under: ROI: Income Tax, Republic of Ireland on October 8th, 2009

Hi! If you're new here, you might want to register for free email updates. Just use the form at the top of the sidebar. Thanks for visiting The Payroll Blog!

Employers who pay the statutory redundancy entitlement and give proper notice of redundancy are entitled to a 60% rebate from the Social Insurance Fund, into which they make regular payments themselves through PRSI contributions.

Where a business is awaiting a statutory redundancy rebate and is experiencing particular difficulties in meeting its tax obligations because of a delay in receiving the repayment, then, subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring for a reasonable period collection or enforcement action that would otherwise ensue in the event of delayed payment of tax.

Revenue has agreed with the Department of Enterprise, Trade and Employment a form of authorisation for payment of the rebate direct to Revenue by the Department. This will facilitate the business in putting in place, in a speedy fashion, the necessary arrangements to have the rebate payment made directly to Revenue.

Further information:
Redundancy Rebates and Tax Payment Difficulties