Value-Added Tax Act, 1972

Estimation of tax due for a taxable period.

22.—(1) If within the time prescribed by section 19 (3) an accountable person fails to furnish in accordance with the relevant regulations a return of the tax payable by him in respect of any taxable period, then, without prejudice to any other action which may be taken, the Revenue Commissioners may, in accordance with regulations, but subject to section 30, estimate the amount of tax payable by him in respect of that taxable period 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 an accountable person, by giving notice in writing to the Revenue Commissioners within the period of twenty-one days from the date of the service of the notice, require the claim to be referred for decision to the Appeal Commissioners and their decision shall, subject to section 25, 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 a claim is required to be so referred, on final determination 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 had furnished, within the prescribed period, a true and correct return, in accordance with regulations, for the taxable period to which the estimate relates, showing as due by him such estimated tax,

(c) if at any time after the service of the notice the person furnishes a return, in accordance with regulations, in respect of the taxable period specified in the notice and pays tax 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 (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) A notice given by the Revenue Commissioners under subsection (1) may extend to two or more taxable periods.