730G Returns and collection of appropriate tax

Summary

This section sets out the date for the payment of appropriate tax by the assurance company. The tax must be paid twice a year, for periods covering six months each. The assurance company must also file a return at this time, even if there is no tax to be paid for the period. The Revenue Commissioners have the power to raise an assessment on the assurance company should they have reason to believe that the assurance company has not declared, or not paid, all the appropriate tax for which they are liable. If an assessment is raised, the company will have a maximum of one month to pay the tax; however they have the right to appeal the assessment. Late payment of appropriate tax will attract interest while it remains outstanding.

Details

Return of appropriate tax

(2) Tax deducted by an assurance company from a gain arising on a chargeable event is termed “appropriate tax” and the company must make two returns in respect of each financial year for such tax to the Collector-General —

• tax arising in respect of chargeable events occurring from 1 January to 30 June must be included in a return made to the Collector-General within 30 days of that latter date.
• tax arising in respect of chargeable events occurring from 1 July to 31 December must be included in a return made to the Collector-General within 30 days of that latter date.

Should no tax arise, the assurance company must make a return to that effect to the Collector-General. Amounts of tax overpaid under the provisions of section 730F(1A) are included in the return.

Power to raise assessments

(3) The appropriate tax (reduced by any amount credited in accordance with section 730F(1A)) must be paid over to the Collector-General by the time the return is due to be made without an assessment being raised, but the Revenue Commissioners can raise an assessment if any tax due has not been paid.

(4) Similarly, an assessment can be raised should the Revenue Commissioners discover that the amount of tax due by the assurance company has been under-declared.

(5) Revenue has the power to make any required adjustments where any item has been incorrectly included in a return. Revenue is also empowered to repay to the assurance company an amount of appropriate tax paid which was correctly included in a return but which, within one year, has been proved by the assurance company as just and reasonable that such tax should now be repaid.

Tax due after assessment

(6)(a) Where an assessment is raised to collect appropriate tax, the tax is due within one month of the date of issue of the notice of assessment unless it is due earlier under subsection (3). Whereas there is a right of appeal against such assessments it cannot affect the date on which any amount of tax is due under the said subsection.

Interest charges

(7) The normal rules relating to assessments, appeals against assessments and the collection and recovery of income tax also apply to appropriate tax. Interest on late payment of such tax is charged at a rate of 0.0322 per cent per day or part of a day before 1 July 2009. The rate is 0.0274 per cent per day or part of a day on or after 1 July 2009. Such interest will not be payable should the total charged be €2 or less. Such interest must be paid without deduction of tax and is not allowed as a deduction in computing any income profits or losses.

Declaration

(8) The return to be made by the assurance company to account for appropriate tax must be in a form prescribed by the Revenue Commissioners and must contain a declaration to the effect that the return is correct and complete.

Relevant Date: Finance Act 2021