Section 997 Supplementary provisions (Chapter 4)

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(1) No assessment under Schedule E for any year of assessment need be made in respect of emoluments to which this Chapter applies except where―

(a) the person assessable, by notice in writing given to the inspector ...¹, requires an assessment to be made,

(b) the emoluments paid in the year of assessment are not the same in amount as the emoluments which are to be treated as the emoluments for that year, or

(c) there is reason to suppose that the emoluments would, if assessed, be taken into account in computing the total income of a person who is liable to tax at the higher rate or would be so liable if an assessment were made in respect of the emoluments;

but where any such assessment is made credit shall be given for the amount of any tax deducted ...² from the emoluments.

Amendments

1 Deleted by Finance Act 2003 section 17(1)(i)(a)(i)(I) from 1 January 2005 (Finance Act 2003 (Commencement of Section 17) Order 2003 (SI 508/2003) para 2(i)(I)).

2 Deleted by Finance Act 2003 section 17(1)(i)(a)(i)(II) from 31 October 2003 (Finance Act 2003 (Commencement of Section 17) Order 2003 (SI 508/2003) para 2(i)(II)).

When can a Schedule E assessment be made on an employee who has paid tax under PAYE in a tax year?

(1) No Schedule E assessment is to be made on you as an employee for a tax year in which you have paid tax through the PAYE system unless:...

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(1A) Notwithstanding subsection (1), an assessment under Schedule E in respect of emoluments to which this Chapter applies shall not be made for any year of assessment―

(a) where paragraph (a) of that subsection applies, unless the person assessable has requested the assessment―

(i) in the case of any year of assessment prior to the year of assessment 2003, within 5 years, and

(ii) in the case of the year of assessment 2003 or any subsequent year of assessment, within 4 years,

from the end of the year of assessment concerned, and

(b) where paragraph (b) or (c) of that subsection applies, at any time later than 4 years from the end of the year of assessment concerned.

Amendments

Subs (1A) inserted by Finance Act 2003 section 17(1)(i)(b) from 1 January 2005 (Finance Act 2003 (Commencement of Section 17) Order 2003 (SI 508/2003) para 2(i)(I)).

In what circumstances will a PAYE assessment not be made for any tax year?

(1A) A Schedule E assessment may not be made for any tax year:...

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(2) Where an employer pays to the Revenue Commissioners any amount of tax which, pursuant to this Chapter and any regulations under this Chapter, the employer has deducted from emoluments, the employer shall be acquitted and discharged of the sum represented by the payment as if the employer had actually paid that sum to the employee.

As an employee, do I have any rights to demand payment of gross wages from my employer?

(2) When your employer pays the tax deducted to Revenue and pays the net amount to you, he/she is treated as if he/she had paid the full gross amount to you, and is therefore acquitted of the debt to you.

(3) Where the inspector, in accordance with the provisions of Regulation 37 of the Income Tax (Employments) (Consolidated) Regulations 2001 (S.I. No. 559 of 2001) sends a statement of liability to an employee, that statement shall, if the inspector so directs and gives notice accordingly in or with the statement sent to the employee, 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 shall accordingly apply to the statement.

Amendments

Subs (3) inserted by Finance Act 2005 section 26.

What are the characteristics of a P21 balancing statement?

(3) Regulation 37 requires an inspector to send to you as an employee (upon whom he/she does not propose to raise an assessment) a statement showing your liability for the year and how he/she proposes to deal with any underpayment or overpayment of t...

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