Finance Act, 2001

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Amendment of Chapter 4 (collection and recovery of income tax on certain emoluments (PAYE system) of Part 42 of Principal Act.

237.—Chapter 4 of Part 42 of the Principal Act is amended—

(a) in section 990—

(i) by the insertion of the following after subsection (1):

“(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 Regulation 35 of the Income Tax (Employments) Regulations, 1960 ( S.I. No. 28 of 1960 ),

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 962, 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.”,

and

(ii) by the insertion in subsection (2) of the following after “subsection (1)”:

“and prior to such service the employer had sent to the Collector-General the return required by Regulation 35 of the Income Tax (Employment) Regulations, 1960 ( S.I. No. 28 of 1960 )”,

(b) in section 991, by the insertion of the following after subsection (1):

“(1A) Notwithstanding anything in subsection (1) but subject to subsection (1B), where an amount of tax (in this subsection referred to as ‘the relevant amount’) in respect of a year of assessment (being the year of assessment 2000-2001 or a subsequent year of assessment) is paid later than 14 days after the end of that year of assessment, interest in accordance with subsection (1) shall be payable and calculated—

(a) where the relevant amount does not exceed 10 per cent of the total amount of tax which the employer was liable under this Chapter and any regulations made under this Chapter to pay to the Revenue Commissioners for that year of assessment, as if the due date for payment of the relevant amount was the 14th day immediately following the end of the year of assessment, and

(b) where the relevant amount exceeds 10 per cent of the amount so payable, as if the due date for payment of the relevant amount was—

(i) as respects the year of assessment 2000-2001, 31 October, 2000,

(ii) as respects the year of assessment 2001, 30 September, 2001, and

(iii) as respects the year of assessment 2002 and subsequent years of assessment, 31 July in the year.

(1B) Where, within 1 month of interest being demanded by the Collector-General in accordance with subsection (1A), the employer declares in writing to the Collector-General the amounts of tax which he or she was liable to remit, but had not remitted, for each of the income tax months comprised in the year of assessment, interest shall be calculated and payable in respect of those amounts in accordance with subsection (1), without regard to subsection (1A).”,

and

(c) by the insertion of the following after section 991: