Revenue Note for Guidance

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Revenue Note for Guidance

997 Supplementary provisions (Chapter 4)


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 balancing statement under the Income Tax Regulations, that statement may, if the inspector so directs at the time, be treated as if were an assessment.


(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 remuneration 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 4 year time limit on the raising of an assessment irrespective of whether it was requested by the taxpayer or is being raised by the inspector. For earlier years there is a 5 year time limit on taxpayer requests. [In the case of assessments raised by the inspector there is a 10 year time limit under section 924 for years earlier than 2003, except the case of fraud or neglect where no limit applies.

(2) An employer who deducts tax under PAYE from an employee’s remuneration 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. No. 345 of 2018) sends a statement of liability to an employee, the 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 raised on the employee, and all the provisions of the Income Tax Acts relating to appeals against assessments and the collection and recovery of tax charged in an assessment are accordingly apply to the statement.

Relevant Date: Finance Act 2021