Section 990 Estimation of tax due for year
|
(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.
What powers does an inspector have when he/she has reason to believe that I have underpaid employers' PAYE?
(1) An inspector who has reason to believe that you have underpaid employers' PAYE in a tax year may estimate the tax underpaid for that year, and issue an assessment notice to you detailing:...
(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 [INVALID LINK of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001)]1,
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 shall, subject to paragraph (c), stand discharged and any excess of tax which may have been paid shall 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 [section 960L]2, 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.
[(d) Where―
(i) the amount of tax estimated in a notice under subsection (1) is remitted and the return required by INVALID LINK 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).]3
Amendments
Subs (1A) inserted by Finance Act 2001 section 237(a)(i) with effect from 6 April 2001.
1 Substituted by Finance Act 2002 section 138 and Schedule 6 para 3(r)(i) as on and from 1 January 2002.
2 Reference replaced by Finance (No. 2) Act 2008 section 97 and Schedule 4 para 3 as respects any tax that becomes due and payable on or after 1 March 2009.
3 Para (d) inserted by Finance Act 2003 section 157(b).
(2) Where a notice is served on an employer under subsection (1) [and prior to such service the employer had sent to the Collector-General the return required by [INVALID LINK of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001)]1]2―
(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;
(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.
Amendments
1 Substituted by Finance Act 2002 section 138 and Schedule 6 para 3(r)(ii) as on and from 1 January 2002.
2 Inserted by Finance Act 2001 section 237(a)(ii) with effect from 6 April 2001.
As an employer, what options do I have if I consider an estimated underpayment to be excessive?
(2) If you feel that the estimated underpayment is excessive, you may appeal in writing to the Appeal Commissioners within 30 days of receiving the notice, provided you have filed the P35 for the year in question....
(3) A notice given by the inspector or other officer under subsection (1) may extend to 2 or more years of assessment.
