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Taxes Consolidation Act, 1997 (Number 39 of 1997)

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990Estimation of tax due for year.

[FA68 s8(1), (2) and (4); FA85 s9(b)]

(1) Where the inspector or such other officer as the Revenue Commissioners may nominate to exercise the powers conferred by this section (in this section referred to as “other officer”) has reason to believe that the total amount of tax which an employer was liable under the regulations to remit in respect of the respective income tax months comprised in any year of assessment was greater than the amount of tax (if any) paid by the employer in respect of those months, then, without prejudice to any other action which may be taken, the inspector or other officer—

(a) may make an estimate in one sum of the total amount of tax which in his or her opinion should have been paid in respect of the income tax months comprised in that year, and

(b) may serve notice on the employer specifying—

(i) the total amount of tax so estimated,

(ii) the total amount of tax (if any) remitted by the employer in relation to the income tax months comprised in that year, and

(iii) the balance of tax remaining unpaid.

[1]>

(1A) (a) Where—

(i) a notice is served on an employer under subsection (1) in relation to a year of assessment (being the year of assessment 2000-2001 or a subsequent year of assessment), and

(ii) prior to the service of the notice, the employer had failed to submit to the Collector-General, in relation to that year of assessment, the return required by [3]>Regulation 35 of the Income Tax (Employments) Regulations, 1960 (S.I. No. 28 of 1960)<[3][3]>Regulation 31 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001)<[3],

then, if, within 14 days after the service of the notice, the employer—

(I) sends that return to the Collector-General, and

(II) pays any balance of tax remaining unpaid for the year of assessment in accordance with the return, together with any interest and costs which may have been incurred in connection with the default,

the notice [7]>shall<[7][7]>may<[7], subject to paragraph (c), stand discharged and any excess of tax which may have been paid [7]>shall<[7][7]>may<[7] be repaid.

(b) If, on expiration of the period referred to in paragraph (a), the employer has not complied with subparagraphs (I) and (II) of paragraph (a), the balance of tax remaining unpaid as specified in the notice shall become due and recoverable in the like manner as if the balance of tax had been charged on the employer under Schedule E.

(c) Where action for the recovery of tax specified in a notice under subsection (1) has been taken, being action by means of the institution of proceedings in any court or the issue of a certificate under [6]>section 962<[6][6]>section 960L<[6], so much of paragraph (a) as relates to the discharge of the notice shall not, unless the Collector-General otherwise directs, apply in relation to that notice until that action has been completed.

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(d) Where—

(i) the amount of tax estimated in a notice under subsection (1) is remitted and the return required by Regulation 31 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001) is not submitted, or

(ii) the inspector or other officer has reason to believe that the amount estimated in the notice is less than the amount which the employer was liable to remit,

the inspector or other officer may amend the amount so estimated by increasing it and serve notice on the employer concerned of the revised amount estimated and such notice shall supersede any previous notice issued under subsection (1).

<[5]

(2) Where a notice is served on an employer [8]>under subsection (1)<[8][8]>under this section<[8] [2]>and prior to such service the employer had sent to the Collector-General the return required by [4]>Regulation 35 of the Income Tax (Employment) Regulations, 1960 (S.I. No. 28 of 1960)<[4]<[2][4]>Regulation 31 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001)<[4]

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(a) the employer may, if claiming that the total amount of tax or the balance of tax remaining unpaid is excessive, on giving notice in writing to the inspector or other officer within the period of 30 days from the service of the notice, appeal to the Appeal Commissioners;

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(a) an employer aggrieved by a notice served under this section on that employer may appeal the notice to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of that notice;

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(b) on the expiration of that period, if no notice of appeal is received or, if notice of appeal is received, on determination of the appeal by agreement or otherwise, the balance of tax remaining unpaid as specified in the notice or the amended tax as determined in relation to the appeal shall become due and be recoverable in the like manner and by the like proceedings as if the balance of tax or the amended tax had been charged on the employer under Schedule E.

(3) A notice given by the inspector or other officer [9]>under subsection (1)<[9][9]>under this section<[9] may extend to 2 or more years of assessment.

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990. Assessment of tax due

(1) Where the inspector or such other officer as the Revenue Commissioners may nominate to exercise the powers conferred by this section (in this section referred to as “other officer”) has reason to believe that—

(a)a return made under section 985G does not include the total amount of tax due for the relevant income tax month, or

(b)a return should have, but has not been, made under section 985G for an income tax month,

then, without prejudice to any other action which may be taken, the inspector or other officer—

(i)may make an assessment in one sum of the total amount of tax which in his or her opinion should have been paid in respect of the income tax month, and

(ii)may serve notice on the employer specifying—

(I)the total amount of tax so assessed,

(II)the total amount of tax (if any) remitted by the employer in relation to the income tax month, and

(III) the balance of tax remaining unpaid.

(2)Where the inspector or other officer has reason to believe that the amount assessed under subsection (1) [12]>is less than<[12][12]>is less than or greater than<[12] the amount which the employer was liable to remit in relation to an income tax month, the inspector or other officer may amend the amount so assessed [13]>by increasing it<[13][13]>by increasing or reducing it, as appropriate,<[13] to the amount which the employer was liable to remit and serve notice on the employer concerned of the revised amount assessed and such notice shall supersede any previous notice issued under subsection (1).

(3)Where a notice is served on an employer under subsection (1) or (2)—

(a)the employer may appeal the notice to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of that notice, and

(b)on the expiration of that period, if no notice of appeal is received or, if notice of appeal is received, on determination of the appeal by agreement or otherwise, the balance of tax remaining unpaid or the amended tax as determined in relation to the appeal shall become due and be recoverable in the like manner and by the like proceedings as if the balance of tax or the amended tax had been charged on the employer under Schedule E.

(4)A notice given by the inspector or other officer under this section may extend to 2 or more income tax months.

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[1]

[+]

Inserted by FA01 s237(a)(i).

[2]

[+]

Inserted by FA01 s237(a)(ii).

[3]

[-] [+]

Substituted by FA02 sched6(3)(r)(i). Shall be deemed to have come into force and take effect as on and from 1 January 2002.

[4]

[-] [+]

Substituted by FA02 sched6(3)(r)(ii). Shall be deemed to have come into force and take effect as on and from 1 January 2002.

[5]

[+]

Inserted by FA03 s157(b).

[6]

[-] [+]

Substituted by FA08No.2 sched4(part2). Applies as respects any tax that becomes due and payable on or after 1 March 2009.

[7]

[-] [+] [-] [+]

Substituted by FA12 s15(d). Deemed to have come into force and takes effect on and from 1 January 2012.

[8]

[-] [+]

Substituted by FA12 s15(e). Deemed to have come into force and takes effect on and from 1 January 2012.

[9]

[-] [+]

Substituted by FA12 s15(f). Deemed to have come into force and takes effect on and from 1 January 2012.

[10]

[-] [+]

Substituted by F(TA)A15 s39(8)(e). With effect from 21 March 2016 per S. I. No 110 of 2016.

[11]

[-] [+]

Substituted by FA17 sched1(4)(k). Applies for the income tax month commencing 1 January 2019 and each subsequent income tax month in respect of emoluments paid on or after 1 January 2019.

[12]

[-] [+]

Substituted by FA19 s71(a).

[13]

[-] [+]

Substituted by FA19 s71(b).