959AX Estimates for Income Tax and Corporation Tax

Summary

Section 32 of Finance Bill 2025 inserted a new section 959AX into Chapter 8 of Part 41A TCA 1997 to provide that Revenue may make estimates of Income Tax (IT) and Corporation Tax (CT) in cases where taxpayers fail to file statutory returns. These estimates will be payable unless discharged by a return or the taxpayer cancels their tax registration if they are not a chargeable person for the period.

Details

(1) Where a chargeable person fails to file a return on or before the specified date for a chargeable period, as provided for by section 959I, for IT and CT as appropriate, a Revenue officer may make an estimate of the tax payable by the chargeable person for that chargeable period. The officer may issue a notice to the person specifying the estimated tax due for that chargeable period.

(2) The estimated tax for the chargeable period shall be the average amount of tax due on the 2 most recent returns submitted before the notice of estimate was issued, or €1,000, whichever is higher.

(3) The estimated tax is recoverable as if the person had submitted a return for Income Tax or Corporation Tax as applicable.

(4) If within 30 days of the service of the notice, the person –

1. delivers the required return, pays the tax, interest, penalties and late filing surcharge as applicable, or
2. notifies Revenue that they are not a chargeable person for the chargeable period,

then the estimate will displaced and it will be deemed that no notice had never been served in respect of the chargeable period. The person can make a claim for repayment for any ex-cess of tax paid in respect of the chargeable period in accordance with section 865.

Relevant Date: Finance Act 2025