960GA Repayment or refund of payment made in excess of liability to tax assessed by taxpayer

Summary

This section provides that where any person appeals an assessment, makes a payment to Revenue in connection with that appealed assessment and is subsequently entitled to a refund of that payment, either because the person settles with Revenue, is successful at appeal, or the assessment is determined in her/his favour by a court, repayment of that amount will not attract interest.

Details

Section 960GA TCA will, in certain circumstances, disapply any provisions of tax legislation that provide for payment of interest on a repayment of tax. These circumstances are where a taxpayer:

• (a) appeals an assessment to the Tax Appeals Commission (or requests judicial review of a decision of the Appeal Commissioner);
• (b) makes a payment (either directly or otherwise) to Revenue indicating that it is to be allocated against the appealed assessment; and
• (c) is entitled to repayment of the amount paid in relation to the appeal assessment because:
  • the taxpayer settles with Revenue;
  • an Appeal Commissioner determines the appeal in favour of the taxpayer, or a higher court affirms the decision of the Appeal Commissioner; or
  • a court of legal proceedings issues a final determination in the taxpayer’s favour.

In these circumstances, any such repayment will not carry interest.

This section will ensure that where a taxpayer makes a payment to Revenue in respect of an appealed assessment, without accepting the liability as assessed by Revenue, and is ultimately successful at appeal or a court finds in the taxpayer’s favour, the taxpayer will not be entitled to receive interest on that repayment. This provision allows Revenue to accept a payment from a taxpayer in respect of a “disputed” assessment without prejudging the case by bringing the payment to account against the taxhead in question.

Relevant Date: Finance Act 2021