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39 1997

TAXES CONSOLIDATION ACT, 1997

PART 47

Penalties, Revenue Offences, Interest on Overdue Tax and Other Sanctions

CHAPTER 1

Income tax and corporation tax penalties

Penalties for failure to make certain returns, etc.

[ITA67 s70(4); s172(5) and s500; FA80 s57(2); FA82 s60; FA92 s248]

1052. —(1) Where any person—

(a) has been required, by notice or precept given under or for the purposes of any of the provisions specified in column 1 or 2 of Schedule 29 , to deliver any return, statement, declaration, list or other document, to furnish any particulars, to produce any document, or to make anything available for inspection, and that person fails to comply with the notice or precept, or

(b) fails to do any act, to furnish any particulars or to deliver any account in accordance with any of the provisions specified in column 3 of that Schedule,

that person shall, subject to subsection (2) and to section 1054 , be liable to a penalty of £750.

(2) Where the notice referred to in subsection (1) was given under or for the purposes of any of the provisions specified in column 1 of Schedule 29 and the failure continues after the end of the year of assessment following that during which the notice was given, the penalty mentioned in subsection (1) shall be £1,200.

(3) Subsections (1) and (2) shall apply subject to sections 877(5) (b) and 897(5).

(4) In proceedings for the recovery of a penalty incurred under this section or under section 1053

(a) a certificate signed by an officer of the Revenue Commissioners, or, in the case of such proceedings in relation to a return referred to in section 879 or 880 , by an inspector, which certifies that he or she has examined his or her relevant records and that it appears from those records that a stated notice or precept was duly given to the defendant on a stated day shall be evidence until the contrary is proved that the defendant received that notice or precept in the ordinary course;

(b) a certificate signed by an officer of the Revenue Commissioners which certifies that he or she has examined his or her relevant records and that it appears from those records that during a stated period a stated notice or precept has not been complied with by the defendant shall be evidence until the contrary is proved that the defendant did not during that period comply with that notice or precept;

(c) in the case of such proceedings in relation to a return referred to in section 879 or 880 , a certificate signed by an inspector which certifies that he or she has examined his or her relevant records and that it appears from those records that during a stated period a stated return was not received from the defendant shall be evidence until the contrary is proved that the defendant did not during that period deliver that return;

(d) a certificate signed by an officer of the Revenue Commissioners which certifies that he or she has examined his or her relevant records and that it appears from those records that during a stated period the defendant has failed to do a stated act, furnish stated particulars or deliver a stated account in accordance with any of the provisions specified in column 3 of Schedule 29 shall be evidence until the contrary is proved that the defendant did so fail;

(e) a certificate certifying as provided for in paragraph (a), (b), (c) or (d) and purporting to be signed by an officer of the Revenue Commissioners or, as the case may be, by an inspector may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by such officer or, as the case may be, such inspector.

Penalty for fraudulently or negligently making incorrect returns, etc.

[ITA67 s501 and s502; F(MP) A68 s3(2) and Sch PtI; FA74 s86 and Sch2 PtI]

1053. —(1) Where any person fraudulently or negligently—

(a) delivers any incorrect return or statement of a kind mentioned in any of the provisions specified in column 1 of Schedule 29 ,

(b) makes any incorrect return, statement or declaration in connection with any claim for any allowance, deduction or relief, or

(c) submits to the Revenue Commissioners, the Appeal Commissioners or an inspector any incorrect accounts in connection with the ascertainment of that person's liability to income tax,

that person shall, subject to section 1054 , be liable to a penalty of—

(i) £100, and

(ii) the amount or, in the case of fraud, twice the amount of the difference specified in subsection (5).

(2) Where any person fraudulently or negligently furnishes, gives, produces or makes any incorrect return, information, certificate, document, record, statement, particulars, account or declaration of a kind mentioned in any of the provisions specified in column 2 or 3 of Schedule 29 , that person shall, subject to section 1054 , be liable to a penalty of £100 or, in the case of fraud, £250.

(3) Where any return, statement, declaration or accounts mentioned in subsection (1) was or were made or submitted by a person, neither fraudulently nor negligently, and it comes to that person's notice (or, if the person has died, to the notice of his or her personal representatives) that it was or they were incorrect, then, unless the error is remedied without unreasonable delay, the return, statement, declaration or accounts shall be treated for the purposes of this section as having been negligently made or submitted by that person.

(4) Subject to section 1060 (2), proceedings for the recovery of any penalty under subsection (1) or (2) shall not be out of time because they are commenced after the time allowed by section 1063 .

(5) The difference referred to in subsection (1) (ii) shall be the difference between—

(a) the amount of income tax payable for the relevant years of assessment by the person concerned (including any amount deducted at source and not repayable), and

(b) the amount which would have been the amount so payable if the return, statement, declaration or accounts as made or submitted by that person had been correct.

(6) The relevant years of assessment for the purposes of subsection (5) shall be, in relation to anything delivered, made or submitted in any year of assessment, that year, the next year and any preceding year of assessment, and the references in that subsection to the amount of income tax payable shall not, in relation to anything done in connection with a partnership, include any tax not chargeable in the partnership name.

(7) For the purposes of this section, any accounts submitted on behalf of a person shall be deemed to have been submitted by the person unless that person proves that they were submitted without that person's consent or knowledge.

Increased penalties in case of body of persons.

[ITA67 s503 and definition of “secretary” in ITA67 s509; FA73 s46]

1054. —(1) In this section, “secretary” includes persons mentioned in section 1044 (2).

(2) Where the person mentioned in section 1052 is a body of persons—

(a) the body of persons shall be liable to—

(i) in a case where the notice was given under or for the purposes of any of the provisions specified in column 1 of Schedule 29 and the failure continues after the end of the year of assessment following that during which the notice was given, a penalty of £1,000, and

(ii) in any other case, a penalty of £500 and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, a further penalty of £50 for each day on which the failure so continues, and

(b) the secretary shall be liable to—

(i) in a case where the notice was given under or for the purposes of any of the provisions specified in column 1 of Schedule 29 and the failure continues after the end of the year of assessment following that during which the notice was given, a separate penalty of £200, and

(ii) in any other case, a separate penalty of £100.

(3) Where the person mentioned in section 1053 is a body of persons—

(a) in the case of such fraud or negligence as is mentioned in section 1053 (1)

(i) the body of persons shall be liable to a penalty of—

(I) £500 or, in the case of fraud, £1,000, and

(II) the amount or, in the case of fraud, twice the amount of the difference specified in section 1053 (5), and

(ii) the secretary shall be liable to a separate penalty of £100 or, in the case of fraud, £200, and

(b) in the case of any such fraud or negligence as is mentioned in section 1053 (2)

(i) the body of persons shall be liable to a penalty of £500 or, in the case of fraud, £1,000, and

(ii) the secretary shall be liable to a separate penalty of £100 or, in the case of fraud, £200.

(4) This section shall apply subject to sections 877 (5) (b) and 897 (5), but otherwise shall apply notwithstanding anything in the Income Tax Acts.

Penalty for assisting in making incorrect returns, etc.

[ITA67 s505; FA74 s86 and Sch2 PtI; CTA76 s147(1) and (2)]

1055. —Any person who assists in or induces the making or delivery for any purposes of income tax or corporation tax of any return, account, statement or declaration which that person knows to be incorrect shall be liable to a penalty of £500.

Penalty for false statement made to obtain allowance.

[ITA67 s516; CTA76 s147(1) and (2); WCTIPA93 s11]

1056. —(1) In this section, “the specified difference”, in relation to a person, means the difference between—

(a) the amount of income tax or, as the case may be, corporation tax payable in relation to the person's or, as may be appropriate, another person's liability to income tax for a year of assessment or to corporation tax for an accounting period, as the case may be, and

(b) the amount which would have been the amount so payable if—

(i) any statement or representation referred to in subsection (2) (a) had not been false,

(ii) any account, return, list, declaration or statement referred to in subsection (2) (b) (i) had not been false or fraudulent, or

(iii) the full amount of income referred to in subsection (2) (b) (ii) had been disclosed.

(2) A person shall, without prejudice to any other penalty to which the person may be liable, be guilty of an offence under this section if—

(a) in relation to the person's liability to income tax for a year of assessment or to corporation tax for an accounting period, as the case may be, the person knowingly makes any false statement or false representation—

(i) in any return, statement or declaration made with reference to tax, or

(ii) for the purpose of obtaining any allowance, reduction, rebate or repayment of tax, or

(b) in relation to liability to income tax of any other person for a year of assessment or to liability to corporation tax of any other person for an accounting period, as the case may be, the person knowingly and wilfully aids, abets, assists, incites or induces that other person—

(i) to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax, or

(ii) unlawfully to avoid liability to tax by failing to disclose the full amount of that other person's income from all sources.

(3) A person guilty of an offence under this section shall be liable—

(a) on summary conviction where the amount of the specified difference is—

(i) less than £1,200, to a fine not exceeding 25 per cent of the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 12 months or to both;

(ii) equal to or greater than £1,200, to a fine not exceeding £1,200 or, at the discretion of the court, to a term of imprisonment not exceeding 12 months or to both;

or

(b) on conviction on indictment where the amount of the specified difference is—

(i) less than £5,000, to a fine not exceeding 25 per cent of the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 2 years or to both;

(ii) equal to or greater than £5,000 but less than £10,000, to a fine not exceeding 50 per cent of the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 3 years or to both;

(iii) equal to or greater than £10,000 but less than £25,000, to a fine not exceeding the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 4 years or to both;

(iv) equal to or greater than £25,000 but less than £100,000, to a fine not exceeding twice the amount of the specified difference or, at the discretion of the court, to a term of imprisonment not exceeding 8 years or to both;

(v) equal to or greater than £100,000, to a fine not exceeding twice the amount of the specified difference and to a term of imprisonment not exceeding 8 years.

(4) Subsections (4) and (6) to (8) of section 1078 shall, with any necessary modifications, apply for the purposes of this section as they apply for the purposes of that section.

(5) This section shall not apply to a declaration given under section 2 or 3 of the Waiver of Certain Tax, Interest and Penalties Act, 1993 , by reason only of any false statement or false representation made in relation to subsection (3) (a) (iii) of section 2 of that Act or subsection (6) (b) (III) of section 3 of that Act, as the case may be.

Fine for obstruction of officers in execution of duties.

[ITA67 s515; CTA76 s147(1) and (2)]

1057. —(1) Where any person (in this subsection referred to as “the first-mentioned person”) or any person in the first-mentioned person's employ, obstructs, molests or hinders—

(a) an officer or any person employed in relation to any duty of income tax or corporation tax in the execution of his or her duty, or of any of the powers or authorities by law given to the officer or person, or

(b) any person acting in the aid of an officer or any person so employed,

the first-mentioned person shall for every such offence incur a fine of £100.

(2) Without prejudice to any other mode of recovery, the fine imposed under this section may be proceeded for and recovered in the like manner and, in the case of summary proceedings, with the like power of appeal as any fine or penalty under any Act relating to the excise.

Refusal to allow deduction of tax.

[ITA67 s520; CTA76 s147(1) and (2); FA96 s132(1) and Sch5 PtI par10(5)]

1058. —(1) A person who refuses to allow a deduction of income tax or corporation tax authorised by the Tax Acts to be made out of any payment shall forfeit the sum of £50.

(2) Every agreement for payment of interest, rent or other annual payment in full without allowing any such deduction shall be void.

Power to add penalties to assessments.

[ITA67 s513; CTA76 s147(3) and (4)]

1059. —Where an increased rate of income tax or corporation tax is imposed as a penalty, or as part of or in addition to a penalty, the penalty and increased rate of tax may be added to the assessment and collected and levied in the like manner as any tax included in such assessment may be collected and levied.

Proceedings against executor or administrator.

[ITA67 s504; CTA76 s147(3) and (4); FA78 s11(2)]

1060. —(1) Where the person who has incurred any penalty has died, any proceedings under the Tax Acts which have been or could have been commenced against that person may be continued or commenced against his or her executor or administrator, as the case may be, and any penalty awarded in proceedings so continued or commenced shall be a debt due from and payable out of his or her estate.

(2) Proceedings may not be commenced by virtue of subsection (1) against the executor or administrator of a person at a time when by virtue of subsection (2) of section 1048 that executor or administrator is not assessable and chargeable under that section in respect of income tax on profits or gains which arose or accrued to the person before his or her death.

Recovery of penalties.

[ITA67 s508; FA68 s6(6); CTA76 s147(3) and (4)]

1061. —(1) Without prejudice to any other mode of recovery of a penalty under the preceding provisions of this Part or under section 305 , 783 , 789 or 886 , an officer of the Revenue Commissioners authorised by them for the purposes of this subsection may sue in his or her own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum, and section 94 of the Courts of Justice Act, 1924 , shall apply accordingly.

(2) Where an officer who has commenced proceedings pursuant to this section, or who has continued the proceedings by virtue of this subsection, dies or otherwise ceases for any reason to be an officer authorised for the purposes of subsection (1)

(a) the right of such officer to continue the proceedings shall cease and the right to continue them shall vest in such other officer so authorised as may be nominated by the Revenue Commissioners,

(b) where such other officer is nominated under paragraph (a), he or she shall be entitled accordingly to be substituted as a party to the proceedings in the place of the first-mentioned officer, and

(c) where an officer is so substituted, he or she shall give notice in writing of the substitution to the defendant.

(3) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying that—

(a) a person is an officer of the Revenue Commissioners, and

(b) he or she has been authorised by them for the purposes of subsection (1),

shall be evidence of those facts until the contrary is proved.

(4) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying that—

(a) the plaintiff has ceased to be an officer of the Revenue Commissioners authorised by them for the purposes of subsection (1),

(b) another person is an officer of the Revenue Commissioners,

(c) such other person has been authorised by them for the purposes of subsection (1), and

(d) he or she has been nominated by them in relation to the proceedings for the purposes of subsection (2),

shall be evidence of those facts until the contrary is proved.

(5) In proceedings pursuant to this section, a certificate certifying the facts referred to in subsection (3) or (4) and purporting to be signed by a Revenue Commissioner may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been so signed.

(6) Subject to this section, the rules of the High Court for the time being applicable to civil proceedings shall apply to proceedings pursuant to this section.

Proceedings where penalty recoverable cannot be definitely ascertained.

[ITA67 s510; CTA76 s147(3) and (4)]

1062. —Notwithstanding that the amount of a penalty recoverable under the Tax Acts cannot be definitely ascertained by reason of the fact that the amount of income tax or, as the case may be, corporation tax by reference to which such penalty is to be calculated has not been finally ascertained, proceedings may be instituted for the recovery of such penalty and, if at the hearing of such proceedings the amount of such tax has not then been finally ascertained, the Court may, if it is of the opinion that such penalty is recoverable, adjourn such proceedings and shall not give any judgment or make any order for the payment of such penalty until the amount of such tax has been finally ascertained.

Time limit for recovery of fines and penalties.

[ITA67 s511; FA74 s86 and Sch2 PtI; CTA76 s147(3) and (4)]

1063. —Proceedings for the recovery of any fine or penalty incurred under the Tax Acts in relation to or in connection with income tax or corporation tax may, subject to section 1060 , be begun at any time within 6 years after the date on which such fine or penalty was incurred.

Time for certain summary proceedings.

[ITA67 s517; FA79 s29; CTA76 s148]

1064. —Notwithstanding section 10(4) of the Petty Sessions (Ireland) Act, 1851, summary proceedings under section 889 , 987 or 1056 may be instituted within 10 years from the date of the committing of the offence or incurring of the penalty, as the case may be.

Mitigation and application of fines and penalties.

[ITA67 s512; CTA76 s147(3) and (4); WCTIPA93 s10]

1065. —(1) (a) The Revenue Commissioners may in their discretion mitigate any fine or penalty, or stay or compound any proceedings for the recovery of any fine or penalty, and may also, after judgment, further mitigate the fine or penalty, and may order any person imprisoned for any offence to be discharged before the term of his or her imprisonment has expired.

(b) The Minister for Finance may mitigate any such fine or penalty either before or after judgment.

(2) Notwithstanding subsection (1)

(a) where a fine or penalty is mitigated or further mitigated, as the case may be, after judgment, the amount or amounts so mitigated shall, subject to paragraph (b), not be greater than 50 per cent of the amount of the fine or penalty, and

(b) in relation to an individual, being an individual referred to in section 2 (2) of the Waiver of Certain Tax, Interest and Penalties Act, 1993 , or a person referred to in section 3(2) of that Act, who—

(i) fails to give a declaration required by section 2(3) (a) of that Act, or

(ii) gives a declaration referred to in subparagraph (i) or a declaration under section 3(6) (b) of that Act which is false or fails to comply with the requirements of subparagraph (iii) or (iv) of section 2(3) (a) of that Act or subparagraph (III) of section 3(6) (b) of that Act to the extent that any of those subparagraphs apply to that person,

no mitigation shall be allowed.

(3) Moneys arising from fines, penalties and forfeitures, and all costs, charges and expenses payable in respect of or in relation to such fines, penalties and forfeitures, shall be accounted for and paid to the Revenue Commissioners or as they direct.

False evidence: punishment as for perjury.

[ITA67 s518; CTA76 s147(1) and (2)]

1066. —If any person on any examination on oath, or in any affidavit or deposition authorised by the Tax Acts, wilfully and corruptly gives false evidence, or wilfully and corruptly swears any matter or thing which is false or untrue, that person shall on conviction be subject and liable to such punishment as persons convicted of perjury are subject and liable to.

Admissibility of statements and documents in criminal and tax proceedings.

[ITA67 s521; FA74 s86 and Sch2 PtI; CTA76 s147(1) and (2)]

1067. —(1) Statements made or documents produced by or on behalf of a person shall not be inadmissible in any proceedings mentioned in subsection (2) by reason only that it has been drawn to the person's attention that—

(a) in relation to income tax or, as the case may be, corporation tax, the Revenue Commissioners may accept pecuniary settlements instead of instituting proceedings, and

(b) although no undertaking can be given as to whether or not the Revenue Commissioners will accept such a settlement in the case of any particular person, it is the practice of the Revenue Commissioners to be influenced by the fact that a person has made a full confession of any fraud or default to which the person has been a party and has given full facilities for investigation,

and that the person was or may have been induced thereby to make the statements or produce the documents.

(2) The proceedings referred to in subsection (1) are—

(a) any criminal proceedings against the person in question for any form of fraud or wilful default in connection with or in relation to income tax or corporation tax, and

(b) any proceedings against the person in question for the recovery of any sum due from that person, whether by means of tax, fine, forfeiture or penalty, in connection with or in relation to income tax or corporation tax.

Failure to act within required time.

[ITA67 s507; CTA76 s147(1) and (2)]

1068. —For the purposes of this Chapter, a person shall be deemed not to have failed to do anything required to be done within a limited time if the person did it within such further time, if any, as the Commissioners or officer concerned may have allowed and, where a person had a reasonable excuse for not doing anything required to be done, the person shall be deemed not to have failed to do it if the person did it without unreasonable delay after the excuse had ceased.

Evidence of income.

[ITA67 s506 and definition of “assessment” in ITA67 s509; F(MP) A68 s3(2) and Sch PtI; CTA76 s147(1) and (2); FA88 s21(2)]

1069. —(1) In this section, “assessment” includes—

(a) an additional assessment, and

(b) an assessment as amended under section 955 .

(2) For the purposes of this Chapter, any assessment which can no longer be varied by the Appeal Commissioners on appeal or by the order of any court shall be sufficient evidence that the income in respect of which income tax or, as the case may be, corporation tax is charged in the assessment arose or was received as stated in the assessment.

Saving for criminal proceedings.

[ITA67 s514; CTA76 s147(1) and (2)]

1070. —The Tax Acts shall not affect any criminal proceedings for a felony or misdemeanour.