Revenue Note for Guidance

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Revenue Note for Guidance

960GA Repayment or refund of payment made in excess of liability to tax assessed by taxpayer

Summary

This section provides that where any person appeals an assessment, makes a payment to Revenue in connection with that appealed assessment and is subsequently entitled to a refund of that payment, either because the person settles with Revenue, is successful at appeal, or the assessment is determined in her/his favour by a court, repayment of that amount will not attract interest.

Details

Section 960GA TCA will, in certain circumstances, disapply any provisions of tax legislation that provide for payment of interest on a repayment of tax. These circumstances are where a taxpayer:

  • (a) appeals an assessment to the Tax Appeals Commission (or requests judicial review of a decision of the Appeal Commissioner);
  • (b) makes a payment (either directly or otherwise) to Revenue indicating that it is to be allocated against the appealed assessment; and
  • (c) is entitled to repayment of the amount paid in relation to the appeal assessment because:
    • the taxpayer settles with Revenue;
    • an Appeal Commissioner determines the appeal in favour of the taxpayer, or a higher court affirms the decision of the Appeal Commissioner; or
    • a court of legal proceedings issues a final determination in the taxpayer’s favour.

In these circumstances, any such repayment will not carry interest.

This section will ensure that where a taxpayer makes a payment to Revenue in respect of an appealed assessment, without accepting the liability as assessed by Revenue, and is ultimately successful at appeal or a court finds in the taxpayer’s favour, the taxpayer will not be entitled to receive interest on that repayment. This provision allows Revenue to accept a payment from a taxpayer in respect of a “disputed” assessment without prejudging the case by bringing the payment to account against the taxhead in question.

Relevant Date: Finance Act 2021