Revenue Note for Guidance

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Revenue Note for Guidance

989 Estimation of tax due for income tax months

Summary

The Revenue Commissioners may serve a notice on an employer of the estimated tax due under PAYE where the employer has not made any payment for an income tax month. An employer who claims to be not liable to remit any tax for the income tax month referred to in the notice may appeal to the Appeal Commissioners whose decision on the matter is final and conclusive. Where an estimated amount is paid and a return showing the correct liability is not submitted, or if the Revenue Commissioners have reason to believe that the original estimate was too low, an additional estimate can be raised on the employer.

Details

(1) In this section and in sections 990 and 991 the regulations referred to are the PAYE Regulations made under section 986.

(2) The Revenue Commissioners may estimate the amount of tax due by an employer whom they believe is liable to remit income tax for an income tax month and who has failed to do so and they may serve a notice of this estimated tax on the employer.

(3)(a) Where a notice of the estimated tax due is served on an employer who claims to be not liable to remit any tax for the income tax month referred to in the notice, the employer may, within 14 days after the date of the notice, appeal to the Appeal Commissioners whose decision on the matter is final and conclusive.

(3)(b) If no appeal is made or if the Appeal Commissioners find against the employer, the estimated tax is properly due and payable.

(3)(c) If an employer, after the service of a notice of an estimate of the tax due, forwards a declaration of the tax due for the income tax month and pays that tax together with any interest and costs incurred, the notice of the estimated tax is to be cancelled and any excess tax paid will be refunded.

(3)(d) However, if an action for recovery of the tax specified in the notice has started (namely, by court proceedings or by referral to the sheriff or county registrar), then, unless the Revenue Commissioners direct otherwise, the notice of the estimated tax is not to be cancelled until the recovery action is completed.

(3)(e) Where the tax estimated in the notice is paid and a return showing the actual liability is not submitted, or where the Revenue Commissioners have information to indicate that the original estimate was too low, an increased estimate may be made and served on the employer and the new estimate will supersede any previous one.

(4) A notice of the estimated tax due by an employer issued under this section may cover 2 or more consecutive income tax months.

(5) The Revenue Commissioners may nominate any of their officers to carry out the functions and duties of the Revenue Commissioners authorised under this section.

Relevant Date: Finance Act 2020