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Taxes Consolidation Act, 1997 (Number 39 of 1997)


960HOffset between taxes.

(1) In this section—

claim” means a claim that gives rise to either or both a repayment of tax and a payment of interest payable in respect of such a repayment and includes part of such a claim;

liability” means any tax due and payable which is unpaid and includes any tax estimated to be due and payable;

overpayment” means a payment or remittance (including part of such a payment or remittance) which is in excess of the amount of the liability against which it is credited.

(2) Where the Collector-General is satisfied that a person has not complied with the obligations imposed on the person in relation to either or both—

(a) the payment of tax that is due and payable, and

(b) the delivery of returns required to be made,

then the Collector-General may, in a case where a repayment is due to the person in respect of a claim or overpayment—

(i) where paragraph (a) applies, or where paragraphs (a) and (b) apply, instead of making the repayment, set the amount of the repayment against any liability, and

(ii) where paragraph (b) only applies, withhold making the repayment until such time as the returns required to be delivered have been delivered.

(3) (a) Where a person (referred to in this subsection as the “first-mentioned person”) has assigned, transferred or sold a right to a claim or overpayment to another person (referred to in this subsection as the “second-mentioned person”) and subsection (2)(a) applies, then the Collector-General shall, in a case where a repayment would have been due to the first-mentioned person in respect of the claim or overpayment if he or she had not assigned, transferred or sold his or her right to the claim or overpayment, instead of making the repayment to the second-mentioned person, set that claim or over-payment against tax that is due and payable by that first-mentioned person.

(b) Where the first-mentioned person and the second-mentioned person are connected persons within the meaning of section 10, then the balance, if any, of the repayment referred to in paragraph (a) shall be set against tax due and payable by the second-mentioned person.

(4) Where the Collector-General has set or withheld a repayment by virtue of subsection (2) or (3), then he or she shall give notice in writing to that effect to the person or persons concerned and, where subsection (2)(ii) applies, interest shall not be payable under any provision of the Acts from the date of such notice in respect of any repayment so withheld.

(5) The Revenue Commissioners may make regulations for the purpose of giving effect to this section and, without prejudice to the generality of the foregoing, such regulations may provide for the order of priority of the liabilities to tax against which any claim or overpayment is to be set in accordance with subsection (2) or (3) or both.

(6) Every regulation made under this section is to be laid before Dáil Éireann as soon as may be after it is made and, if a resolution annulling the regulation is passed by Dáil Éireann within the next 21 days on which Dáil Éireann has sat after the regulation is laid before it, the regulation shall be annulled accordingly, but without prejudice to the validity of anything previously done under the regulation.

(7) The Taxes (Offset of Repayments) Regulations 2002 (S.I. No. 471 of 2002) shall have effect as if they were made under subsection (5) and had complied with subsection (6).




Inserted by F(No.2)A08 sched4(1)(b)(i). Applies as respects any tax that becomes due and payable on or after 1 March 2009.