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6 1967

INCOME TAX ACT, 1967

PART VIII

Returns and Assessment, Provision Against Double Assessment, and Relief in Respect of Error or Mistake

Chapter I

Returns and Assessment

General notice to deliver lists and statements.

167. —(1) The Revenue Commissioners shall in each year of assessment cause general notice to be given, requiring every person who, by this Act, is required to deliver any list, declaration or statement to make out and deliver such list, declaration or statement to the inspectors or to the said Revenue Commissioners within such time as shall be limited by such notice, not being less than twenty-one days from the giving thereof.

(2) The said general notice shall in each year be given by causing the same to be inserted once in Iris Oifigiúil and once at least in each of two daily newspapers published in the State and such insertions shall be deemed to be sufficient compliance with subsection (1) and to be good service of such general notice on all persons concerned.

Particular notice to persons chargeable.

168. —(1) The inspectors shall, within the time directed by the precept of the Special Commissioners, give a particular notice to every person chargeable, within the limits wherein they act, requiring him, within such time as shall be limited by the precept, to prepare and deliver to the inspectors all such lists, declarations and statements as are required by this Act to be delivered.

(2) A particular notice may be given either personally, or by leaving a notice at the dwelling-house, place of residence or place of business of the person chargeable, or on the premises to be charged by the assessment.

Returns by persons chargeable.

169. —(1) Every person chargeable under this Act, when required to do so by any general or particular notice given in pursuance of this Act, shall, within the period limited by such notice, prepare and deliver to the inspector, a statement in writing as required by this Act, signed by him, containing—

(a) the annual value of all lands and tenements in his occupation;

(b) the amount of the profits or gains arising to him, from each and every source chargeable according to the respective schedules, estimated for the period and according to the provisions of this Act.

(2) To the said statement shall be added a declaration that such values or amounts are estimated in respect of all the sources of income mentioned in this Act, describing the same, after deducting only such sums as are allowed.

(3) Every such statement shall be made exclusive of any interest of money or other annual payment arising out of the property of any other person charged in respect thereof.

(4) Every person upon whom a particular notice has been served by an inspector requiring him to deliver a statement of any profits, gains, or income in respect of which he is chargeable under Schedule D or Schedule E, shall deliver a statement in the form required by the notice, whether or not he is so chargeable:

Provided that the penalty inflicted upon any person proceeded against for not complying with this provision who proves that he was not chargeable to tax, shall not exceed £5 for any one offence.

Persons acting for incapacitated persons and non-residents.

170. —(1) Every person acting in any character on behalf of any incapacitated person or person not resident in the State who, by reason of such incapacity or non-residence in the State, cannot be personally charged under this Act, shall, whenever required to do so by any general or particular notice, within the like period, and in any district in which he may be chargeable on his own account, deliver such a statement as is described in section 169 of the profits or gains in respect of which the tax is to be charged on him on account of that other person, together with the prescribed declaration.

(2) Where two or more such persons are liable to be charged for the same person—

(a) one statement only shall be required to be delivered which may be made by them jointly, or by any one or more of them; and

(b) notice in writing may be given by any such persons to the inspector for each district in which they are called upon for a statement stating in which district or districts they are respectively chargeable on their own account, and in which of those districts they desire to be charged on behalf of the person for whom they act, and they shall, if any one of them is liable to be charged on his own account in that district, be charged therein accordingly by one assessment.

Notice to persons coming into district.

171. —(1) If any person comes into a district in which he has not been charged to tax, the inspector may give him notice in writing to deliver, within fourteen days from the giving of the notice—

(a) a declaration in writing, signed by him, specifying the district in which he has been assessed; or

(b) in default thereof, a statement in order that he may be assessed and charged in the district into which he has come.

(2) If in any case a person who is, or who resides, in any district has not been assessed therein, the inspector may assess him, as though he had been resident there at the time of the publication of the general notices directed by this Act, unless he proves to the inspector's satisfaction that he has been duly assessed in some other district.

Power to require return of income.

172. —(1) Every individual, when required to do so by a notice given to him in relation to any year of assessment by an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return in the prescribed form of—

(a) all the sources of his income for the year of assessment (in this section referred to as the preceding year) immediately preceding the year of assessment in relation to which the notice is given;

(b) the amount of income from each source for the preceding year computed in accordance with subsection (2);

(c) such further particulars for the purposes of income tax (including sur-tax) for the preceding year or the year of assessment as may be required by the notice or indicated by the prescribed form.

(2) The amount of income from any source to be included in a return under this section shall be computed in accordance with the provisions of this Act save that the computation shall be made in all cases by reference to the preceding year:

Provided that—

(a) in the case of such interest as is referred to in section 344 the computation shall be made without regard to that section;

(b) where, under section 60, the profits or gains of a year ending on a date within the preceding year are to be taken to be the profits or gains of the preceding year, the computation shall be made by reference to the said year ending on a date within the preceding year.

(3) An inspector may refrain from giving a particular notice pursuant to a precept under section 168 in any case in which he has given, or intends to give, a notice under this section.

(4) If a person delivers to any inspector a return in a prescribed form, he shall be deemed to have been required by a notice under this section to prepare and deliver that return.

(5) In proceedings for recovery of a penalty incurred under section 500 or 501 in relation to a return referred to in the preceding provisions of this section—

(a) a certificate signed by an inspector which certifies that he has examined his relevant records and that it appears from them that a stated notice was duly given to the defendant on a stated day shall be evidence until the contrary is proved that that person received that notice in the ordinary course,

(b) a certificate signed by an inspector which certifies that he has examined his relevant records and that it appears from them 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,

(c) a certificate certifying as provided for in paragraph (a) or (b) and purporting to be signed 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 inspector.

(6) In this section “prescribed” means prescribed by the Revenue Commissioners and, in prescribing forms for the purposes of this section, the Revenue Commissioners shall have regard to the desirability of securing, so far as may be possible, that no individual shall be required to make more than one return annually of the sources of his income and the amounts derived therefrom.

Power to obtain information as to fees, commissions, etc.

173. —(1) Every person carrying on a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of any kind specified in the notice made during a period so specified, being—

(a) payments made in the course of the trade or business, or of such part of the trade or business as may be specified in the notice, for services rendered in connection with the trade or business by persons ordinarily resident in the State and not employed in the trade or business, or

(b) payments for services rendered in connection with the formation, acquisition, development or disposal of the trade or business, or any part of it, by persons ordinarily resident in the State and not employed in the trade or business, or

(c) periodical or lump sum payments made to persons ordinarily resident in the State in respect of any copyright.

(2) Every body of persons carrying on any activity which does not constitute a trade or business shall, if required to do so by notice from an inspector, make and deliver to the inspector a return of all payments of a kind specified in the notice made during a period so specified, being—

(a) payments made in the course of carrying on the activity, or such part of the activity as may be specified in the notice, for services rendered in connection with the activity by persons ordinarily resident in the State and not employed by the said body of persons, or

(b) periodical or lump sum payments made to persons ordinarily resident in the State in respect of any copyright.

(3) A return required under subsection (1) or (2) shall, if the trade or business or other activity is carried on by an unincorporated body of persons, be made and delivered by the person who is or performs the duties of secretary of the body, and the notice shall be framed accordingly.

(4) A return under this section shall give the name of the person to whom each payment was made, the amount of the payment and such other particulars (including particulars as to the services or rights in respect of which the payment was made, the period over which any services were rendered and any business name and any business or home address of the person to whom payment was made) as may be specified in the notice.

(5) No person shall be required under this section to include in a return—

(a) particulars of any payment from which income tax is deductible, or

(b) particulars of payments made to any one person where the total of the payments to that person which would otherwise fall to be included in the return does not exceed £15, or

(c) particulars of any payment made in a year of assessment ending more than three years before the service of the notice requiring him to make the return.

(6) A person who fails to deliver, within the period limited in any notice served on him under this section, a true and correct-return which he is required by the notice to deliver shall be liable to a penalty of £20, together with, in the case of a continuing non-compliance, a penalty of the like amount for every day on which the non-compliance is continued.

(7) All penalties under this section may, without prejudice to any other method of recovery, be proceeded for and recovered summarily in the same manner as in summary proceedings for recovery of any fine or penalty under any Act relating to the excise.

(8) Where—

(a) a person does not comply with any notice served on him under this section requiring him to deliver any return,

(b) the notice requires compliance within a particular period, and

(c) such person continues, during a further period of two or more days, not to deliver the return,

the non-compliance shall be regarded, for the purposes of subsection (6), as a non-compliance continuing on every day, other than the first, of the further period.

(9) In proceedings for recovery of a penalty under this section a certificate by an officer of the Revenue Commissioners which certifies that he has inspected the relevant records of the Revenue Commissioners and that it appears from them 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, and any such certificate, purporting to be signed by an officer of the Revenue Commissioners, may be tendered in evidence without proof and shall be deemed until the contrary is proved to have been signed by an officer of the Revenue Commissioners.

(10) In this section—

(a) references to payments for services include references to payments in the nature of commission of any kind and references to payments in respect of expenses incurred in connection with the rendering of services, and

(b) references to the making of payments include references to the giving of any valuable consideration,

and the requirement imposed by subsection (4) to state the amount of a payment shall, in relation to any consideration given otherwise than in the form of money, be construed as a requirement to give particulars of the consideration.

Power to require production of accounts and books.

174. —(1) Where a person who has been duly required to deliver a statement of the profits or gains arising to him from any trade or profession fails to deliver the statement, or where the Revenue Commissioners are not satisfied with the statement delivered by any such person, the Revenue Commissioners may serve on that person a notice in writing or notices in writing requiring him to do any of the following things, that is to say—

(a) to deliver to an inspector copies of such accounts (including balance sheets) relating to the trade or profession as may be specified or described in the notice within such period as may be therein specified, including, where the accounts have been audited, a copy of the auditor's certificate;

(b) to make available, within such time as may be specified in the notice, for inspection by an inspector or by any officer authorised by the Revenue Commissioners, all such books, accounts and documents in his possession or power as may be specified or described in the notice, being books, accounts and documents which contain information as to transactions of the trade or profession.

(2) The inspector or other officer may take copies of, or extracts from any books, accounts or documents made available for his inspection under this section.

Power to obtain information as to interest paid or credited without deduction of tax.

175. —(1) Every person carrying on a trade or business who, in the ordinary course of the operations thereof, receives or retains money in such circumstances that interest becomes payable thereon which is paid or credited without deduction of income tax, and, in particular, every person carrying on the trade or business of banking, shall, if required to do so, by notice from an inspector, make and deliver to the inspector, within the time specified in the notice, a return of all interest paid or credited by him as aforesaid during a year specified in the notice in the course of his trade or business or any such part of his trade or business as may be so specified, giving the names and addresses of the persons to whom the interest was paid or credited and stating, in each case, the amount of the interest:

Provided that—

(a) no interest paid or credited to any person shall be required to be included in any such return if the total amount of the interest paid or credited to that person which would otherwise have fallen to be included in the return does not exceed £50; and

(b) the year specified in a notice under this subsection shall not be a year ending more than three years before the date of the service of the notice.

(2) Without prejudice to the generality of so much of subsection (1) as enables different notices to be served thereunder in relation to different parts of a trade or business, separate notices may be served under that subsection as respects the transactions carried on at any branch or branches respectively specified in the notices, and any such separate notice shall, if served on the manager or other person in charge of the branch or branches in question, be deemed to have been duly served on the person carrying on the trade or business; and where such a separate notice is so served as respects the transactions carried on at any branch or branches, any notice subsequently served under subsection (1) on the person carrying on the trade or business shall not be deemed to extend to any transaction to which the said separate notice extends.

(3) This section shall, with any necessary adaptations, apply in relation to the Post Office Savings Bank as if it were a trade or business carried on by the Minister for Posts and Telegraphs.

This subsection shall have effect notwithstanding anything in section 4 of the Post Office Savings Bank Act, 1861, but save as aforesaid that section shall remain in full force and effect.

(4) The foregoing provisions of this section shall apply to interest paid or credited on or at any time after the 6th day of April, 1962, and only to money received or retained in the State, and, if a person to whom any interest is paid or credited in respect of any money received or retained in the State by notice in writing served on the person paying or crediting the interest—

(a) declares that the person who was beneficially entitled to that interest when it was paid or credited was not then ordinarily resident in the State, and

(b) requests that the interest shall not be included in any return under this section,

the person paying or crediting the interest shall not be required to include the interest in any such return.

Delivery of lists by persons in receipt of income of others.

176. —(1) Every person who, in whatever capacity, is in receipt of any money or value, or of profits or gains arising from any of the sources mentioned in this Act, of or belonging to any other person who is chargeable in respect thereof, or who would be so chargeable if he were resident in the State and not an incapacitated person, shall, whenever required to do so by any general or particular notice, prepare and deliver, within the period mentioned in such notice, a list in the prescribed form, signed by him, containing—

(a) a statement of all such money, value, profits or gains;

(b) the name and address of every person to whom the same shall belong;

(c) a declaration whether every such person is of full age, or a married woman or is resident in the State or is an incapacitated person.

(2) If any person above described is acting jointly with any other person, he shall, in like manner, deliver a list of the names and addresses of all persons joined with him at the time of delivery of the list mentioned in subsection (1).

Lists of lodgers and inmates.

177. —Every person, when required to do so by a general or particular notice under this Act, shall, within the time limited thereby, prepare and deliver to the inspector a list, in writing, containing to the best of his belief—

(a) the name of every lodger or inmate resident in his dwellinghouse; and

(b) the name and ordinary place of residence of any such lodger or inmate who has any ordinary place of residence elsewhere at which he can be assessed and who desires to be assessed at such ordinary place of residence.

Lists of employees.

178. —(1) Every employer, when required to do so by notice from an inspector, shall, within the time limited by the notice, prepare and deliver to the inspector a return containing—

(a) the names and places of residence of all persons employed by him; and

(b) the payments, made to those persons in respect of that employment, except persons who are not employed in any other employment and whose remuneration in the employment for the year does not exceed £150:

Provided that an employer shall not be liable to any penalty for omitting from any such return the name or place of residence of any person employed by him and not employed in any other employment, if it appears to the Revenue Commissioners that such person is entitled to total exemption from tax.

(2) (a) In this section the references to payments made to persons in respect of their employment and to the remuneration of persons in their employment shall be deemed to include references—

(i) to any payments made to employed persons in respect of expenses,

(ii) to any payments made on behalf of employed persons and not repaid, and

(iii) to any payments made to the employees in a trade or business for services rendered in connection with the trade or business, whether the services were rendered in the course of their employment or not.

(b) The reference in paragraph (a) (i) to payments made to employed persons in respect of expenses includes a reference to sums put at the disposal of an employed person and paid away by him.

(3) Where the employer is a body of persons, the secretary of the body, or other officer (by whatever name called) performing the duties of secretary, shall be deemed to be the employer for the purposes of this section, and any director, within the meaning of section 119, of a body corporate (including a company), or person engaged in the management of that body corporate, shall be deemed to be a person employed.

(4) Where an employer is a body corporate (including a company), that body corporate shall be liable to a penalty for failure to deliver a return in pursuance of this section, as well as the secretary or other officer performing the duties of secretary of the body corporate.

Service of notice on new residents in district.

179. —The inspector may at any time cause a notice to be delivered or served to or on any person coming to reside in any district after the expiration of the general notices prescribed by this Act.

Making of assessments under Schedules A and B.

180. —(1) Assessments under Schedules A and B shall be made by the inspectors or such other officers as the Revenue Commissioners shall appoint in that behalf.

(2) When assessments under Schedules A and B have been made the Revenue Commissioners shall cause notice thereof and of the time allowed for giving notice of appeal to be given in such manner as they deem expedient.

(3) Any such notice may be given—

(a) by publishing in Iris Oifigiúil, and in at least two daily newspapers published in the State, a notice that the assessments are deposited with the inspectors for the respective districts for inspection by the person assessed, and stating the time allowed for giving notice of appeal against the said assessments, or

(b) by causing to be delivered to each person assessed a notification of the amount of his assessment and of the time allowed for giving notice of appeal.

Making of assessments under Schedules D and E.

181. —(1) Assessments under Schedules D and E, except—

(a) such assessments as the Special Commissioners are empowered to make under Part XXXI, and

(b) assessments to which section 157 applies, and

(c) such assessments as officers or persons appointed by the Revenue Commissioners are empowered to make under section 158,

shall be made by the inspectors or such other officers as the Revenue Commissioners shall appoint in that behalf.

(2) The inspector shall give due notice to each person assessed, of every such assessment made by him, and the amount thereof, and of the time allowed for giving notice of appeal against the same.

Granting of allowances and reliefs.

182. —(1) Notwithstanding anything contained in this Act, the inspector or such other officer as the Revenue Commissioners shall appoint in that behalf may at any time grant, in relation to any assessment in respect of tax chargeable for any year of assessment, any allowance, deduction, or relief authorised by this Act.

(2) Whenever such inspector or other officer so grants any such allowance, deduction, or relief in relation to an assessment, such assessment shall be deemed to be amended accordingly.

Aggregation of assessments.

183. —(1) Where two or more assessments fall to be made on a person under Schedule A, B, D or E, or under two or more of those Schedules,—

(a) the tax in the assessments may be stated in one sum,

(b) as regards Schedule A or B in a case in which there are two or more tenements or rateable hereditaments, one assessment may be made on the total of the annual or assessable values,

and the notice of assessment may be stated correspondingly, but particulars of the annual or assessable values comprised in one assessment made pursuant to paragraph (b) shall, on request, be given by the inspector.

(2) A notice of appeal in a case in which subsection (1) applies must, to be valid, indicate each assessment appealed against.

(3) Pending the determination of an appeal against any one or more of such assessments as are referred to in subsection (1), an amount of tax being a portion of the one sum referred to in that subsection shall be payable on the due date or dates and shall be the amount which results when the appropriate personal reliefs are deducted from the assessments not under appeal or allowed from the tax charged in those assessments (as may be appropriate).

(4) The tax stated in one sum under subsection (1) or the amount payable under subsection (3) shall for the purposes of sections 550, 551 and 552, be deemed to be tax charged by an assessment to income tax.

(5) If for any of the purposes of this Act, other than subsection (3), it becomes necessary to determine what amount of the tax charged is applicable to any one of two or more assessments referred to in subsection (1)—

(a) a certificate from the inspector indicating the manner in which the deductions, allowances or reliefs were allocated and stating the separate amounts of tax, if any, and the instalments thereof applicable to any one or more assessments or to each assessment shall be sufficient evidence of the charge to tax in and by each such assessment,

(b) where an assessment to which that certificate relates is made under subsection (1) (b), the inspector may further certify what portion of the amount of the tax charged in and by that assessment is applicable to any of the annual or assessable values, and for the purposes of this Act that portion shall be deemed to be tax charged in and by an assessment.

(6) Notwithstanding the making of one assessment pursuant to subsection (1) (b), the provisions of this Act, other than this section, relating to assessments under Schedule A or B (as the case may be) shall continue to apply as if the tenements or rateable hereditaments had been assessed separately.

(7) In this section “personal reliefs” has the meaning assigned to it by section 193 (6).

Assessment in absence of return.

184. —(1) If the inspector does not receive a statement from a person liable to be charged to tax, he shall to the best of his information and judgment make an assessment upon that person of the amount at which he ought to be charged under Schedules A, B, and E.

(2) If—

(a) a person makes default in the delivery of a statement in respect of any tax under Schedule D, or

(b) the inspector is not satisfied with a statement which has been delivered, or has received any information as to its insufficiency,

the inspector shall make an assessment on the person concerned in such sum as, according to the best of the inspector's judgment, ought to be charged on that person.

Functions of assessors.

185. —(1) (a) A person appointed under section 159 to be an assessor and a person (in this section also called an assessor) appointed under section 158 shall, on request, be furnished, free of charge, by any officer in the relevant department or office or by any agent by whom the same are payable, with true accounts of any salaries, fees, wages, perquisites, profits, pensions, or stipends chargeable under Schedule E.

(b) Every such assessor shall have access to all documents in his department or office which concern any such payments.

(c) Every such assessor may, if he is dissatisfied with any such account as aforesaid, or in any case in which it may be necessary, require, from any person to be charged, an account of any salary, fees, wages, perquisites, profits, pensions, or stipend, within the like period as is limited for the delivery of statements of profits or gains under this Act, and under the like penalty as is provided in the case of failure to deliver such statements.

(2) The assessors shall assess the persons who hold offices, or are entitled to pensions or stipends, in accordance with the annual amount thereof from the documents, accounts and papers in their respective departments.

(3) Every assessment shall set forth—

(a) the full and just annual emoluments of every office and employment of profit, and the full annual amount of every pension or stipend;

(b) the names of the persons entitled thereto; and

(c) the tax payable in each case.

(4) An assessor who fails to comply with the provisions of this section shall be liable to a penalty not exceeding £100 and not less than £20.

Additional assessments.

186. —(1) If the inspector discovers—

(a) that any properties or profits chargeable to tax have been omitted from the first assessments, or

(b) that a person chargeable has not delivered any statement, or has not delivered a full and proper statement, or has not been assessed to tax, or has been undercharged in the first assessments, or

(c) that a person chargeable has been allowed, or has obtained from and in the first assessments, any allowance, deduction, exemption, abatement, or relief not authorised by this Act,

then, where the tax is chargeable under Schedule A, B, D or E, the inspector shall make an additional first assessment:

Provided that any such additional first assessment shall be subject to appeal and other proceedings as in the case of a first assessment.

(2) Subject to section 211, an assessment or an additional first assessment may be amended or made at any time.

(3) Any assessments not made at the time when the first assessments are made shall, as soon as they are made, be added to the first assessments, and to the respective duplicates thereof, by means of separate forms of assessment and duplicate.

Particulars of sums to be collected.

187. —(1) After assessments to income tax and sur-tax have been made, the inspectors shall transmit particulars of the sums to be collected to the Collector for collection, and references in this Act to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.

(2) As soon as may be after the termination of the appointment of a collector appointed under section 7 of the Finance Act, 1934 , the inspector shall transmit to the Collector for collection particulars of all sums of income tax or balances thereof contained in duplicates which were delivered to that collector and which remained unpaid on such termination, and references in this Act to duplicates of assessments delivered to collectors shall be construed as including references to particulars so transmitted.

(3) Where, before or after the passing of this Act, the Collector duly appointed to collect any income tax in succession to another Collector institutes or continues proceedings under section 486 for the recovery of the tax or any balance thereof, the other Collector shall, for the purposes of the proceedings, be deemed until the contrary is proved to have ceased to be the Collector appointed to collect the tax.

Loss or destruction of assessments and other documents.

188. —(1) Where any assessment to income tax for any year, or any duplicate of assessment to income tax for any year, or any return or other document relating to income tax has been lost or destroyed, or has been so defaced or damaged as to be illegible or otherwise useless, the Revenue Commissioners, inspectors, the Collector, and other officers respectively having powers in relation to income tax may, notwithstanding anything in any enactment to the contrary, do all such acts and things as they might have done, and all acts and things done under or in pursuance of this section shall be as valid and effectual for all purposes as they would have been if the assessment or duplicate of assessment had not been made, or the return or other document had not been made or furnished, or required to be made or furnished:

Provided that, where any person who is charged with income tax in consequence or by virtue of any act or thing done under or in pursuance of this section, proves to the satisfaction of the Revenue Commissioners that he has already paid any income tax for the same year in respect of the subject matter and on the account in respect of and on which he is so charged, relief shall be given to the extent to which the liability of that person has been discharged by the payments so made either by abatement from the charge or by repayment, as the case may require.

(2) In this section “income tax” includes “sur-tax”.

Amendment of statutory forms.

189. —It shall be lawful for the Revenue Commissioners from time to time to make such amendments of the forms of declarations, lists and statements contained in Schedules 17 and 18 as appear to them to be necessary to give effect to the provisions of this Act.