Finance (No.2) Act 2023

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Time limits for certain assessments and repayments

5. (1) Section 531AOA of the Principal Act is amended by the insertion of the following subsections after subsection (5):

“(6) (a) Where an employer makes a return under subsection (2) after the expiry of a period of 4 years commencing at the end of the year of assessment in which the income tax month falls, that employer shall not be entitled in the case of a repayment referred to in Regulation 4 of the Universal Social Charge Regulations 2018 (S.I. No. 510 of 2018) to be paid it, or given credit for it, by the Revenue Commissioners.

(b) Notwithstanding paragraph (a), where, in a return made by an employer under subsection (2), the amount the employer is liable to pay pursuant to Regulation 4 of the Universal Social Charge Regulations 2018 ( S.I. No. 510 of 2018 ) exceeds the amount of a repayment pursuant to the said Regulation 4 then credit may be given by the Revenue Commissioners against the amount the employer is liable to pay in that return.

(7) Where, in relation to a return made under subsection (2) which includes a repayment, the Revenue Commissioners are of the opinion that the requirements of this section have not been met, they shall decide to refuse the repayment and shall notify the employer in writing of the decision and the reasons for it.

(8) A person aggrieved by a decision of the Revenue Commissioners in relation to subsection (7) may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that decision.”.

(2) Section 984B of the Principal Act is amended by the insertion of “subject to subsections (6A) and (6B) of section 985G,” after “and shall,”.

(3) Section 985G of the Principal Act is amended by the insertion of the following subsections after subsection (6):

“(6A) (a) Where an employer makes a return under subsection (3)(a) after the expiry of a period of 4 years commencing at the end of the year of assessment in which the income tax month falls, that employer shall not be entitled in the case of a repayment referred to in section 984B to be paid it, or be given credit for it, by the Revenue Commissioners.

(b) Notwithstanding paragraph (a), where, in a return made by an employer under subsection (3)(a), the amount the employer is liable to pay pursuant to section 984B exceeds the amount of a repayment pursuant to section 984B then credit may be given by the Revenue Commissioners against the amount the employer is liable to pay in that return.

(6B) Where, in relation to a return made under subsection (3)(a) which includes a repayment, the Revenue Commissioners are of the opinion that the requirements of this section have not been met, they shall decide to refuse the repayment and shall notify the employer in writing of the decision and the reasons for it.

(6C) A person aggrieved by a decision of the Revenue Commissioners in relation to subsection (6B) may appeal the decision to the Appeal Commissioners, in accordance with section 949I, within the period of 30 days after the date of the notice of that decision.”.

(4) Section 990 of the Principal Act is amended by the insertion of the following subsections after subsection (4):

“(5) Subject to subsections (6), (7) and (8), an inspector or other officer shall not, in respect of a return made by an employer for an income tax month, make—

(a) an assessment under subsection (1), or

(b) an amendment of an assessment under subsection (2),

after the expiry of a period of 4 years commencing at the end of the year following the year of assessment in which the income tax month falls.

(6) Nothing in subsection (5) shall prevent an inspector or other officer from, at any time, making or amending an assessment for an income tax month in order to—

(a) give effect to—

(i) a determination of an appeal against an assessment,

(ii) a determination of an appeal, other than one made under subparagraph (i), that affects the amount of tax charged by an assessment, or

(iii) an agreement within the meaning of section 949V,

(b) take account of any fact or matter arising by reason of an event occurring after the return is made,

(c) correct an error in calculation in the assessment, or

(d) correct a mistake of fact whereby any matter in the assessment does not properly reflect the facts disclosed by the employer,

and tax shall be paid or repaid (notwithstanding any limitation in subsection (6A) of section 985G or subsection (6) of section 531AOA) where appropriate in accordance with any such amendment.

(7) Notwithstanding subsection (5) and any limitation in the Tax Acts on the period within which a claim for relief from tax is required to be made, an inspector or other officer may, at any time, make or amend an assessment for an income tax month to give effect to a mutual agreement reached, under an arrangement having the force of law by virtue of section 826(1), between the competent authority of the State and a competent authority of another jurisdiction and tax shall be paid or repaid (notwithstanding any limitation in subsection (6A) of section 985G or subsection (6) of section 531AOA) where appropriate in accordance with any such assessment or amended assessment.

(8) (a) Notwithstanding subsection (5), an inspector or other officer may, at any time, make or amend an assessment for an income tax month where he or she has reasonable grounds for believing that any form of fraud or neglect has been committed by or on behalf of an employer in connection with or in relation to tax due under this Chapter.

(b) In this subsection, ‘neglect’ has the same meaning as it has in section 959AD and subsection (2) of that section shall apply accordingly.”.

(5) Section 997 of the Principal Act is amended, in subsection (1A), by the substitution of “959AB, 959AC and 959AD” for “959AB and 959AD”.

(6) Subsections (1), (2) and (3) shall apply in respect of returns made for income tax months commencing on or after 1 January 2019.