5 Enquiries or action by inspector or other officer.

(1) Where, in relation to any liability to tax (within the meaning of section 2 or 3, as the case may be) of an individual for the relevant period, being tax which has been remitted to the Chief Special Collector, an inspector or other officer of the Revenue Commissioners commences to make such enquiries, or take such action, as are within his powers, or gives a notice in writing to an individual of his intention to make such enquiries or take such action in relation to such liability to tax and the individual produces to the inspector or other officer, not later than 30 days from the commencement of the said enquiries or the taking of the said action, or the giving of the notice as aforesaid, a certificate referred to in section 2 (4) or 3 (6) (c), as the case may be, in respect of such liability to tax given to him by the Chief Special Collector, the inspector or other officer shall, on production to him of the said certificate and on validation of that certificate in accordance with the provisions of paragraph (a) of the proviso to section 7 (4), be precluded from continuing with or commencing the said enquiries or continuing with or commencing the said action unless, on application by him to the Appeal Commissioners, he shows to the satisfaction of those Commissioners that—

(a) enquiries made or action taken in relation to the liability to tax (within the aforesaid meaning) of the individual for any period commencing on or after the 6th day of April, 1991, indicate, or

(b) there are other reasonable grounds which indicate,

that a declaration made by the individual to the Chief Special Collector under section 2 (3) (a) or 3 (6) (b) did not contain a full and true statement of the declared amounts or the amount of value-added tax comprised in the [arrears of tax, as the case may be, or that the declaration made by the individual under section 2 (3) (a) (iv) is false]¹.

(2) (a) An application by the inspector or other officer under subsection (1) shall be made by him by notice in writing to the Appeal Commissioners within 30 days of the receipt by him from the individual concerned of the certificate referred to in section 2 (4) or 3 (6) (c), as the case may be, given to that individual by the Chief Special Collector, and a copy of the application shall be furnished as soon as practicable by the inspector or other officer to the individual concerned.

(b) An application under subsection (1) shall, with any necessary modifications, be heard by the Appeal Commissioners as if it were an appeal against an assessment to income tax.

(c) Any action required to be taken by the individual and any further action proposed to be taken by the inspector or other officer pursuant to the inspector's or other officer's enquiry or action shall be suspended pending decision by the Appeal Commissioners on the application.

(d) Where, on the hearing of the application by an inspector or other officer under subsection (1), the Appeal Commissioners—

(i) decide that there are no reasonable grounds to suggest that the declaration made by the individual to the Chief Special Collector under section 2 (3) (a) or 3 (6) (b) did not contain a full and true statement of the declared amounts or the amount of value-added tax comprised in the arrears of tax, as the case may be, then the individual shall not be required to take any action pursuant to the inspector's or other officer's enquiry or action and the inspector or other officer shall be prohibited from pursuing his enquiry or action, or

(ii) decide that there are such reasonable grounds, then the inspector or other officer may continue with his enquiry or action.