904J Power of inspection: tax deduction from payments in respect of professional services by certain persons

Summary

Under the terms of the professional services withholding tax (PSWT) scheme, accountable persons are required to make monthly returns to the Revenue containing details in connection with the PSWT. This section enables the Revenue Commissioners to carry out on-site audits of these returns and also to examine procedures to ensure compliance by accountable persons with their obligations in connection with the PSWT.

Details

(1) “authorised officer” means a person authorised in writing by the Revenue Commissioners to exercise the powers conferred by this section.

“books, records or other documents” includes any records used in the business of the accountable person, documents and correspondence and records of other communications between an accountable person and a specified person.

“accountable person” and “specified person” are defined by reference to their meanings in sections 521 and 520 respectively.

(2) An authorised officer is empowered to enter, at all reasonable times, any premises or place of business of an accountable person for the purpose of auditing returns made by that accountable person under section 525.

(3) The audit procedures can include—

• examination of the procedures adopted by the accountable person to ensure that the accountable person is complying with the obligations imposed by Chapter 1 of Part 18 dealing with the payments in respect of professional services;
• (3)(b) checking all or a sample of the returns made to determine whether—
  • those procedures have been observed,
  • those procedures are adequate.

(4) The accountable person or its employees are required to produce books and records, to give information and explanations and to afford reasonable assistance to the authorised officer in carrying out his or her duties.

(5) An authorised officer may make extracts from, or copies of, books and records of the accountable person or require that copies be made available to him or her in carrying out his or her duties under the section.

(6) The officer is to produce proof of authorisation on request.

(7) An employee of an accountable person is liable to a penalty of €1,265 for failure to comply with the requirements of an authorised officer in the exercise or performance of his or her powers or duties.

(8) Where the accountable person fails to comply, the penalty is €19,045 with a further penalty of €2,535 for each day that the failure continues.

Relevant Date: Finance Act 2021