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SOLR_PROP

Finance Act, 1965

Determination as to whether activity is exempted.

39.(1) Where—

(a) it appears to the Revenue Commissioners (whether upon disclosure to them of information which in accordance with the relevant regulations has been furnished to them for the ascertainment of liability to tax of the person concerned or otherwise) that, in computing the taxable turnover of an accountable person in respect of any month, a deduction of moneys has been made on the basis that the activity in relation to which the moneys were received is an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963 , and

(b) the Revenue Commissioners are of opinion that that activity is not such an exempted activity,

the Revenue Commissioners may, at their discretion and without prejudice to any other action which may be taken, serve notice on the person specifying—

(i) the deduction which in their opinion should not have been made in computing taxable turnover for the month in question, and

(ii) the additional tax which would be payable if that deduction had not been made.

(2) Where a notice is served on an accountable person under subsection (1) of this section—

(a) the person may, if he claims that the deduction specified in the notice relates to an exempted activity within the meaning of subsection (2) of section 48 of the Finance Act, 1963 , by notice in writing given to the Revenue Commissioners within the period of fourteen days from the service of the notice, require the claim to be referred for decision to the Special Commissioners of Income Tax,

(b) on the expiration of the said period, if no such claim is required to be so referred, or, if such claim is required to be so referred, on determination by the Special Commissioners of Income Tax against the claim, the additional tax specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person had sent, in accordance with the relevant regulations, particulars showing such tax as due by him.

(3) A notice served under subsection (1) of this section may relate to two or more months and to two or more deductions in any month.