In this appeal, the Tax Appeals Commission ruled that a
termination payment of €65,000 made to an employee, following
mediation with his former employer, did not qualify for exemption
from income tax.
Exemption from income tax
Section 192A of the Taxes Consolidation Act 1997 (the
"Act") provides for an exemption from income tax of
certain payments made for infringement of an employee's
rights or entitlements, or an employer's obligations, under
employment legislation. The exemption applies to awards made by
bodies such as the Workplace Relations Commission, the Labour
Court, the Circuit Court and the High Court. It also applies to
payments made pursuant to a settlement, arrived at under a
mediation process provided for in the Act.
