Global Daily Tax News, Ireland Updates Guidance On PAYE Assessments, (Aug 5, 2024)

The Irish Revenue has updated its guidance on PAYE assessments.

The guidance includes a new section 6.2, which clarifies amendments to the regime introduced through the Finance (No. 2) Act 2023, which introduced a statutory time limit on Revenue on t ...

The Irish Revenue has updated its guidance on PAYE assessments.

The guidance includes a new section 6.2, which clarifies amendments to the regime introduced through the Finance (No. 2) Act 2023, which introduced a statutory time limit on Revenue on the creation or amendment of PAYE assessments on employers.

Additional guidance has also been added on how to appeal a PAYE assessment.

As detailed in the new guidance, Section 5(4) of the Finance (No.2) Act 2023 introduced additional provisions to Section 990 TCA 1997. In summary, these provisions introduced a statutory limitation on the making or amending of PAYE assessments by Revenue, with effect from January 1, 2024.

From January 1, 2024, Revenue is time bound in the making or amending of PAYE assessments to four years, commencing at the end of the year following the year of assessment in which the income tax month falls. For example, an assessment in respect of the income tax month of February 2024 would only be permitted to be made up to December 31, 2029, subject to certain exceptions.

Specifically, the Act introduced the following provisions:

Section 990(5) provides for a statutory four-year time limit for the making or amending of PAYE assessments by Revenue;
Section 990(6) specifies a range of circumstances for which no time limit applies for the making or amending of PAYE assessments by Revenue including raising or amending an assessment:
- further to an appeal determination;
- to take account of facts or matters arising by reason of an event occurring after the return is made;
- amending errors in the calculation of the assessment or the amended assessment; or
- to correct a mistake of fact.
Section 990(7) provides that no time limit applies where an assessment is made or amended to give effect to a mutual agreement reached between Revenue and a competent tax authority in another jurisdiction; and
Section 990(8) provides that the statutory four-year time limit for the making or amending assessments by Revenue does not apply in cases of fraud or neglect.

Global Daily Tax News, Ireland Updates Guidance On PAYE Assessments, (Aug 5, 2024)

The Irish Revenue has updated its guidance on PAYE assessments.

The guidance includes a new section 6.2, which clarifies amendments to the regime introduced through the Finance (No. 2) Act 2023, which introduced a statutory time limit on Revenue on t ...

The Irish Revenue has updated its guidance on PAYE assessments.

Additional guidance has also been added on how to appeal a PAYE assessment.

Specifically, the Act introduced the following provisions:

Section 990(5) provides for a statutory four-year time limit for the making or amending of PAYE assessments by Revenue;
Section 990(6) specifies a range of circumstances for which no time limit applies for the making or amending of PAYE assessments by Revenue including raising or amending an assessment:
- further to an appeal determination;
- to take account of facts or matters arising by reason of an event occurring after the return is made;
- amending errors in the calculation of the assessment or the amended assessment; or
- to correct a mistake of fact.
Section 990(7) provides that no time limit applies where an assessment is made or amended to give effect to a mutual agreement reached between Revenue and a competent tax authority in another jurisdiction; and
Section 990(8) provides that the statutory four-year time limit for the making or amending assessments by Revenue does not apply in cases of fraud or neglect.