Finance Act, 1968

Estimation of tax due for income tax months.

7.—(1) Where the Revenue Commissioners have reason to believe that a person was liable under the regulations to remit tax in relation to any income tax month, and the person has not remitted any tax in relation to that income tax month, they may estimate the amount of tax which should have been remitted by the person within the period specified in the regulations for the payment of such tax and serve notice on him of the amount estimated.

(2) Where a notice is served under subsection (1) on a person, the following provisions shall apply—

(a) the person may, if he claims that he is not liable to remit any tax for the income tax month to which the notice relates, by giving notice in writing 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 Appeal Commissioners and their decision shall be final and conclusive,

(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 referred, on final determination by the Appeal Commissioners against the claim, the estimated tax specified in the notice shall be recoverable in the same manner and by the like proceedings as if the person were an employer and the amount specified in the notice were the amount of tax which he was liable under the regulations to deduct from emoluments paid by him during the income tax month specified in the notice reduced by any amounts which he was liable under the regulations to repay during that income tax month,

(c) if at any time after the service of the notice the person furnishes a declaration of the amount which he is liable under the regulations to remit in respect of the income tax month specified in the notice and pays the tax in accordance with the declaration together with any interest and costs which may have been incurred in connection with the default, the notice shall, subject to paragraph (d), stand discharged and any excess of tax which may have been paid shall be repaid,

(d) where action for the recovery of tax specified in a notice under subsection (1), being action by way of the institution of proceedings in any court or the issue of a certificate under section 485 of the Income Tax Act, 1967 , has been taken, paragraph (c), shall not, unless the Revenue Commissioners otherwise direct, apply in relation to that notice until the said action has been completed.

(3) In a case in which a part of a stamp book required by the regulations to be sent to the Revenue Commissioners with the appropriate stamps affixed thereto during a particular period is not sent, the tax for which the means of payment is stamps affixed to that part of the stamp book shall be regarded for the purposes of subsection (1) as tax which a person was liable to remit by reference to the relevent income tax month or months to which the part of the stamp book relates.

(4) A notice given by the Revenue Commissioners under subsection (1) may extend to two or more consecutive income tax months.

(5) The Revenue Commissioners may nominate any of their officers to perform any acts and discharge any functions authorised by this section or section 8 to be performed or discharged by the Revenue Commissioners.

(6) In this section “emoluments” means anything assessable to income tax under Schedule E and references to payments of emoluments include references to payments on account of emoluments.

(7) In this section and in section 8 “employer” means any person paying emoluments.

(8) In this section and in sections 8 and 9—

“income tax month” means a month beginning on the 6th day of any of the months of April to March in any year of assessment whether occurring before or after the commencement of this Part;

“the regulations” means any regulations under section 127 of the Income Tax Act, 1967 .