Revenue Note for Guidance

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Revenue Note for Guidance

485FB Requirement to provide estimates and information

Summary

This section requires all taxpayers who are subject to the restriction to make a selfassessment tax return in any year in which the restriction applies, if they are not otherwise required to make one.

In addition, individuals who are subject to the restriction, have to provide a statement to Revenue (form RR1 used for this purpose) setting out the actual calculation of the restriction and identifying precisely the specified reliefs involved. Revenue has the ability to seek further information on the calculations and the reliefs used. The ability to seek information extends to seeking information from high earners, who have not submitted a statement, as to whether they are liable to submit a statement.

Details

Definitions

(1) The definitions of “chargeable person” and “specified return date for the chargeable period” have the same meaning as in the self-assessment legislation in Part 41A.

The definition of “prescribed form” means a form prescribed by, or used under the authority of, the Revenue Commissioners and includes a form that involves delivery by electronic means.

Requirement to submit tax return

(2) Everyone who is subject to the restriction is regarded as a chargeable person for selfassessment purposes. Therefore, a self-assessment tax return must be submitted each year in which a person is subject to the restriction and preliminary tax must be paid on time.

Requirement to submit statement of details of restriction

(3) An individual who is subject to the restriction is required to submit a statement along with his or her tax return by the self-assessment return filing date. The statement is to be on a prescribed form and is to give details that the form requires of—

  • the amounts that make up the aggregate of specified reliefs,
  • the determination of those amounts,
  • the estimates required by subsection (4), and
  • other matters relating to the restriction (e.g. the calculation of the adjusted income, or the income threshold amount in a case involving income subject to DIRT).

(4) The estimates to be included in the statement are estimates of —

  • the individual’s taxable income as if the restriction did not apply,
  • the individual’s taxable income after applying the restriction, and
  • the total tax payment due after applying the restriction.

These requirements are in addition to the normal self-assessment requirement to “pay and file”.

(5) In a case where both spouses or civil partners are subject to the restriction and they are not taxed as single persons, separate statements are required from both spouses or civil partners but the separate statements are to be combined in the one prescribed form. Where the couple are separately assessed they may submit separate forms.

Verifying accuracy of statements

(6) A Revenue officer is authorised to make enquiries for the purposes of verifying the accuracy of any detail or estimate included in a statement or to determine whether or not an individual who failed to submit a statement should have submitted one. In the latter case, the officer may require, by notice in writing, the individual to furnish details of the tax reliefs claimed for a tax year. The notice must give the individual at least 14 days to respond. The need for this authority arises because a tax return for a year submitted by an individual who is claiming that the restriction does not apply will contain aggregate figures for many tax reliefs and it may not be possible to determine from the return whether or not the restriction should apply.

Enquires into the circumstances of individuals who do not provide the statement required by this section, but who might be expected to be subject to the restriction, can only take place after the individual has made a tax return for the year and the individual’s income (including exempt income but before any deductions, allowances or reliefs) is equal to or greater than the income threshold amount.

Application of provisions

(7) Chapter 3 of Part 41A relating to the submission of a tax return are applied for the purposes of the statement to be delivered under this section.

Penalties

(8) The penalties contained in section 1052 are applied to a case where there is a failure to deliver the statement required under this section or a failure to deliver the details required under subsection (6).

Relevant Date: Finance Act 2021