997 Supplementary provisions (Chapter 4)

Summary

This section provides that assessments to tax need not be made in respect of PAYE emoluments except in a small number of cases. Where an inspector issues a statement of liability under the Income Tax Regulations, that statement may, if the inspector so directs at the time, be treated as if it were an assessment.

Details

(1) No assessment need be made on an employee under Schedule E in respect of emoluments within the PAYE system except where –

• the employee, by written notice, requests an assessment,
• the emoluments paid to the employee in the year of assessment are not the same amount as those earned in the year (for example, extra renumeration paid in the year for work done in the previous tax year), or
• the emoluments should be assessed at the higher rate of tax.

Where an assessment is made, credit is to be given for tax deducted from the emoluments through the PAYE system.

(1A) For years of assessment 2003 onwards, there is a four year time limit on the making of an assessment irrespective of whether it was requested by the taxpayer or is being made by the inspector. No time limit applies in the case of fraud or neglect or, where a chargeable person fails to file a return or files an incomplete return. For years prior to 2003, there is a five year time limit on taxpayer requests.

(2) An employer who deducts tax under PAYE from an employee’s emoluments and pays it over to the Revenue Commissioners is acquitted and discharged of the amount so paid as if it had actually been paid to the employee.

(3) Where the inspector, in accordance with the provisions of Regulation 28 of the Income Tax (Employments) Regulations 2018 (S.I. 345 of 2018) sends a statement of liability to an employee, that statement, if the inspector so directs and gives notice accordingly in the statement sent to the employee, is to be treated in all respects as if it were an assessment made on the employee, and all the provisions of the Income Tax Acts relating to the collection and recovery of tax charged in an assessment accordingly apply to the statement.

(4) An employee aggrieved by a statement of liability issued under subsection (3) may appeal the statement to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the statement.

Relevant Date: Finance Act 2025