Changes which impact transferees of fixed charges over book
debts were introduced pursuant to Section 72 of the Finance Act 2019 (the "2019 Act").
This section, published this month, amends Section 1001 of the
Taxes Consolidation Act 1997 ("TCA") and came into force
on 22 December 2019.
Requirements of Section 1001 of the TCA ("Section
1001") prior to the 2019 Act
Section 1001 provides that the Revenue Commissioners of Ireland
("Revenue") can hold a charge-holder
liable for the fiduciary taxes of a company over whose book debts*
it holds a fixed charge. Where a company fails to pay certain
overdue tax liabilities (i.e. its PAYE, PRSI, USC, VAT or Local
Property Tax), then the fixed charge-holder is, upon receipt of a
notification from Revenue advising the fixed charge-holder of its
potential liability under Section 1001 (a "Revenue
Notification"), liable for that tax up to the amount
it directly or indirectly receives from the company in discharge of
the company's
