924 Additional assessments

Summary

An inspector may make an additional first assessment on a taxpayer where the inspector discovers the taxpayer has been undercharged in the first assessment or has not been assessed to income tax under Schedule D, E or F. The additional assessment must be made within 4 years after the end of the year of assessment, except in cases of fraud or neglect where there is no time limit on the making of assessments.

Details

(1)(a) An inspector must make an additional first assessment to tax under Schedule D, E or F when —

• any property or profits were not included in the first assessment,
• the taxpayer has not delivered any statement or a full proper statement, has not been assessed to income tax or has been undercharged in the first assessment, or
• the taxpayer has been allowed an unauthorised allowance, deduction, exemption or relief.

(1)(b) The additional first assessment is subject to the same rights of appeal as the first assessment.

(2)(b) In general, an additional assessment may be made not later than 4 years after the end of the year to which the assessment relates.

(2)(a) & (c) However, there is no time limit for additional assessments made in the case of fraud or neglect. For this purpose, “neglect” means negligence or failure to give a notice or make a return or statement or produce or furnish lists of information under the Income Tax Acts, but a person will not be regarded as being negligent if he/she provides the information within a time extension granted by Revenue. Furthermore, a person with a reasonable excuse for failing to provide information, or failing to make a return or give a notice, will not be regarded as negligent provided the information is given or the return is made without undue delay after the excuse expires.

(2)(d) In the case where emoluments assessable under Schedule E, including termination payments on retirement and benefits in kind, are received during a year but relate to a previous year of assessment, the 4 year time limit runs from the year in which the emoluments are received.

(2)(e) An objection that the assessment or additional assessment is outside the time limit can only be made on appeal against the assessment.

(3) An additional assessment is added to a first assessment by a separate form of assessment.

Relevant Date: Finance Act 2019