959AB Persons other than chargeable persons: time limit on Revenue assessment and amended assessment

Summary

This section provides for a 4-year time limit, on the making and amending of assessments on persons other than chargeable persons. This limit is, in general, linked to the chargeable period to which the assessment relates. However, where certain emoluments are received in a period later than the period to which they relate, the time limit is linked to the period in which the emoluments are received. There is an exclusion to the 4-year time limit in section 959AD. The section provides that nothing in the section affects the operation of sections 811, 811A, 811C or 811D.

Details

(1) Subject to the other provisions of Part 41A, Revenue officer cannot make or amend an assessment on a person other than a chargeable person after 4 years from the end of the chargeable period to which the assessment relates.

(2) Where the assessment or amended assessment relates to certain emoluments that are assessable in one chargeable period but received in the next, the 4 year period is from the year in which the emoluments are received.

(3)(a) The emoluments to which subsection (2) applies are those within the meaning of section 112, i.e., anything assessable to income tax under Schedule E, including payments on retirement or removal from office or employment, chargeable to tax under section 123 and any sums treated as perquisites.

For the purposes of subsection (2), these payments will be treated as having been received at the time when they were actually received. This is despite what is provided for in section 123(4) TCA. Where such emoluments aren’t paid, they will be treated as being received when the expense was incurred or is treated for the purposes of Chapter 3 of Part 5 as being incurred.

Subsection (2) also applies to a gain realised on the exercise, the assignment, or the release of a right under section 128 TCA arising on or after 1 January 2024.

(4) Nothing in this section affects the operation of sections 811 (transactions to avoid liability to tax), 811A (transactions to avoid liability to tax surcharge, interest and protective notification), 811C (transactions to avoid liability to tax) or 811D (transactions to avoid liability to tax, surcharge, interest and protective notification).

Relevant Date: Finance Act 2024