919 Assessments to corporation tax

Summary

Assessments to corporation tax are made by an inspector. Where an inspector is not satisfied with the company’s statement, or if the company fails to deliver a statement, the inspector must assess the company to the best of his/her judgement. Where an inspector discovers profits have not been assessed or were under-assessed, the inspector must make an assessment on this additional amount but, in general, no assessment may be made under this section more than 4 years after the end of the accounting period to which it relates, except in the case of fraud or neglect where there is no time limit on the making of assessments. An assessment for an accounting period after the commencement of a winding-up is still valid even if made before the end of the accounting period.

Details

(1) Assessments to corporation tax are made by an inspector.

(2) In the case of a resident company assessed to corporation tax, the assessment is made on the company. In the case of a non-resident company, the assessment is made on the company in the name of an agent, manager, factor or other representative of the company.

(3) The inspector must send a notice of assessment to the company or in the case of a non-resident company to the company’s agent or representative.

(4) Where a company fails to deliver a statement in respect of corporation tax, or the inspector is not satisfied with the statement or has received information (including information received from a member of the Garda Síochána) as to its insufficiency, the inspector must make an assessment on the company to the best of his/her judgement.

(5)(b) Where an inspector discovers that —

• any profits which should have been assessed to corporation tax have not been assessed,
• an assessment is insufficient, or
• excessive relief was given,

the inspector must make an assessment on this additional amount.

(5)(c) In general, no assessment to corporation tax may be made more than 4 years after the end of the accounting period to which it relates.

(5)(a) & (d) However, there is no time limit in the case where any form of fraud or neglect has been committed by or on behalf of the company. For this purpose, “neglect” means negligence or failure to a give a notice, make a return or statement or produce or furnish lists of information under enactments relating to corporation tax, but a company is not regarded as being negligent if it provides the information within a time extension granted by Revenue. Furthermore, a company with a reasonable excuse for failing to provide information, or failing to make a return or give a notice, will not be regarded as negligent provided the information is given or return made without undue delay after the excuse expires.

(5)(e) An objection that an assessment is outside the time limit can only be made on appeal against the assessment.

(6) An assessment on a company’s profits for an accounting period after the commencement of a winding-up is not invalid because it was made before the end of the accounting period.

Relevant Date: Finance Act 2021