Revenue Note for Guidance

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Revenue Note for Guidance

111. Assessment of tax due

Summary

This section authorises Revenue to review a taxpayer’s payments of tax or claims to refund over any period. Where Revenue consider the total amount paid is less than the true liability, or the total refunded is greater than the amount of refund properly due, Revenue may assess the true liability and serve notice on the taxpayer setting out the amount underpaid.

The taxpayer, where he or she is aggrieved by the assessment, has a right of appeal against any such assessment. The appeal must be lodged in accordance with section 949I of the Taxes Consolidation Act 1997 within the period of 30 days of the date of the formal notice of assessment. The amount of the assessment is payable unless it is successfully appealed.

Details

(1) If the amount of tax paid by an accountable person in respect of any period is less than the tax payable (including tax payable under section 108C), or where a person has claimed a repayment which is later found to be excessive, or not due at all, Revenue may make an assessment in one sum and serve notice for the amount of the true liability. Also, where a person obtains a refund of VAT in accordance with a refund order made under section 103 and it subsequently transpires that the VAT was not properly refundable (for example, the item the subject of the refund, was not used for the purpose intended by the order), an assessment may be made and notice served to recover the amount not properly refundable.

(2) The following provisions apply following the making of an assessment and the service of a notice under subsection (1):

  • Paragraph (a) gives a taxpayer aggrieved by an assessment a right of appeal in accordance with section 949I of the Taxes Consolidation Act 1997 against the assessment. Notice of appeal must be given within the period of 30 days of the date of the notice of assessment, but there are circumstances in which this period may be extended in accordance with section 949O of the Taxes Consolidation Act 1997.
  • Paragraph (b) provides that where a notice of assessment is served, an appeal cannot be lodged against the assessment until the return is furnished and the tax paid.
  • Paragraph (c) provides that in the absence of an appeal the assessment is final and conclusive and the amount of tax due becomes due and payable for the taxable period during which the period of 14 days after the issue of the notice expires.
  • Paragraph (d) provides that where an appeal is lodged and an amount due is determined, that amount becomes due and payable for the taxable period during which the appeal is determined.

(3) An appellant may be able to avoid further interest being charged on tax due while his/her appeal is being determined, where he or she specifies his/her assessment of the liability and pays this amount.

If the amount paid is over 80% of the amount found to be due on determination of the appeal, and the balance (if any) is paid within 30 days, then interest will not accrue for the duration of the appeal process.

(4) A final and conclusive assessment is regarded as final and conclusive even where it is amended by Revenue.

Regulation 41(2) of the VAT Regulations 2010 deals with assessment.

Relevant Date: Finance Act 2019