Our client had a protracted dispute with a life company about his entitlement to income continuance arising from a disability he suffered. They eventually issued a letter to him in December 2017 confirming his entitlement and back dated it to 2014. He received his payment in the company's next payroll run which was 28th January 2018. We submitted a claim to Revenue in March 2019 to have the entitlement apportioned over the period of the claim to avail of the 20% tax rate in 2014 -2017, instead of the 40% rate applied on the income received in January 2018. We received the following reply from Revenue: "we are unable to reapportion the receipt of income continuance. As a consequence of Finance Act 2017 section 12 the statutory basis of assessment of any income from 1/1/18 is to be the receipts basis.m Therefore, the income received in January 2018 is to be taxed solely in 2018." Is this correct? Is there any room for maneouvre on this?
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