First Previous (Chapter IV Profits from Export of Certain Goods) Next (PART XXVII Annual Payments)

6 1967

INCOME TAX ACT, 1967

PART XXVI

Appeals

Prohibition on alteration of assessment except on appeal.

415. —Save where expressly authorised by this Act, an assessment shall not be altered before the time for hearing and determining appeals, and then only in cases of assessments appealed against, and in accordance with such determination; and if any person makes, causes, or allows to be made, in any assessment, any unauthorised alteration, he shall incur a penalty of £50.

Appeals against assessment.

416. —(1) A person aggrieved by any assessment to income tax made upon him by the inspector or such other officer as the Revenue Commissioners shall appoint in that behalf (hereafter in this section referred to as “other officer”) shall be entitled to appeal to the Special Commissioners on giving, within twenty-one days after the date of the notice of assessment or of the notice under section 180 that assessments have been made (as the case may be), notice in writing to the inspector or other officer.

(2) (a) The Special Commissioners shall from time to time appoint times and places for the hearing of appeals against assessments and the Clerk to the Special Commissioners shall give notice of such times and places to the inspector or other officer.

(b) The inspector or other officer shall give notice in writing to each person who has given notice of appeal of the time and place appointed for the hearing of his appeal, but—

(i) notice under this paragraph shall not be given in a case in which subsection (3) (b) has effect either consequent upon an agreement referred to in that paragraph or consequent upon a notice referred to in subsection (3) (d), and

(ii) in a case in which it appears to the inspector or other officer that an appeal may be settled by agreement under subsection (3), he may refrain from giving notice under this paragraph or may by notice in writing withdraw a notice already given.

(3) (a) This subsection applies to any assessment in respect of which notice of appeal has been given, not being an assessment the appeal against which has been determined by the Special Commissioners or which has become final and conclusive under subsection (6).

(b) Where, in relation to an assessment to which this subsection applies, the inspector or other officer and the appellant come to an agreement, whether in writing or otherwise, that the assessment is to stand good, is to be amended in a particular manner or is to be discharged or cancelled, the inspector or other officer shall give effect to the agreement and thereupon, if the agreement is that the assessment is to stand good or is to be amended, the assessment or the amended assessment, as the case may be, shall have the same force and effect as if it were an assessment in respect of which no notice of appeal had been given.

(c) An agreement which is not in writing shall be deemed not to be an agreement for the purposes of paragraph (b) unless—

(i) the fact that an agreement was come to, and the terms agreed upon, are confirmed by notice in writing given by the inspector or other officer to the appellant or by the appellant to the inspector or other officer, and

(ii) twenty-one days have elapsed since the giving of that notice without the person to whom it was given giving notice in writing to the person by whom it was given that he desires to repudiate or withdraw from the agreement.

(d) Where an appellant gives notice in writing to the inspector or other officer that he desires not to proceed with his appeal against an assessment to which this subsection applies, paragraph (b) shall have effect as if the appellant and the inspector or other officer had, on the appellant's notice being received, come to an agreement in writing that the assessment should stand good.

(e) The references in this subsection to an agreement being come to with an appellant and the giving of notice to or by an appellant include references to an agreement being come to with, and the giving of notice to or by, a person acting on behalf of the appellant in relation to the appeal.

(4) All appeals against assessments to income tax shall be heard and determined by the Special Commissioners, and their determination on any such appeal shall be final and conclusive, unless the person assessed requires that his appeal shall be reheard under section 429 or unless under this Act a case is required to be stated for the opinion of the High Court.

(5) An appeal against an assessment may be heard and determined by one Special Commissioner and the powers conferred on the Special Commissioners by subsections (7) and (8) may be exercised by one Special Commissioner.

(6) In default of notice of appeal by a person to whom notice of assessment has been given or in case of the neglect or refusal of a person, who has given notice of appeal, to attend before the Special Commissioners at the time and place appointed for the purpose of hearing appeals, the assessment made on him shall be final and conclusive.

(7) (a) A notice of appeal not given within the time limited by subsection (1) shall be regarded as having been so given where, on an application in writing having been made to him in that behalf, the inspector or such other officer as aforesaid, being satisfied that, owing to absence, sickness or other reasonable cause, the applicant was prevented from giving notice of appeal within the time limited and that the application was made thereafter without unreasonable delay, notifies the applicant in writing that his application has been allowed.

(b) If on an application under paragraph (a) the inspector or other officer is not satisfied as aforesaid, he shall by notice in writing inform the applicant that his application has been refused.

(c) Within fifteen days after the date of a notice under paragraph (b) the applicant may by notice in writing require the inspector or other officer to refer his application to the Special Commissioners and, in relation to any application so referred, paragraphs (a) and (b) shall have effect as if for every reference therein to the inspector or other officer there was substituted a reference to the Special Commissioners.

(8) In a case in which a person who has given notice of appeal does not attend before the Special Commissioners at the time and place appointed for the hearing of his appeal, subsection (6) shall not have effect if—

(a) at the said time and place another person attends on behalf of the appellant and the Special Commissioners consent to hear that person, or

(b) on an application in that behalf having been made to them in writing or otherwise at or before the said time, the Special Commissioners postpone the hearing, or

(c) on an application in writing having been made to them after the said time the Special Commissioners, being satisfied that, owing to absence, sickness or other reasonable cause, the appellant was prevented from appearing before them at the said time and place and that the application was made without unreasonable delay, direct that the appeal be treated as one the time for the hearing of which has not yet been appointed.

(9) (a) Where action for the recovery of tax charged by an assessment, being action by way of the institution of proceedings in any court or the issue of a certificate under section 485 has been taken, neither subsection (7) nor subsection (8) shall, unless the Revenue Commissioners otherwise direct, apply in relation to that assessment until the said action has been completed.

(b) Where, in a case coming within the foregoing paragraph, an application under subsection (7) (a) is allowed or, on an application under subsection (8) (c), the Special Commissioners direct as therein provided, the applicant shall in no case be entitled to repayment of any sum paid or borne by him in respect of costs of any such court proceedings as aforesaid or, as the case may be, of any fees or expenses charged by the county registrar or sheriff executing a certificate under section 485.

(10) Every rehearing of an appeal by the Circuit Court under section 429 shall be held in camera, and every hearing by the High Court or the Supreme Court of a case stated under section 428 or 430 shall, if the person whose chargeability to tax is the subject of the case so desires, be held in camera.

(11) This section shall apply with the necessary modifications to appeals against assessments to sur-tax.

Provision as to appeals.

417. —Whenever an appeal is made against an assessment, the appellant shall in the notice of appeal specify the grounds of the appeal, but this subsection shall not preclude the Special Commissioners from allowing the appellant on the hearing of the appeal to go into any ground of appeal which was not specified in the notice of appeal and the omission of which from such notice was in the opinion of the Special Commissioners not wilful or unreasonable.

Power of Special Commissioners to order payment of tax in assessments under appeal.

418. —(1) Where, on an appeal against an assessment to income tax being brought before them for hearing, the Special Commissioners—

(a) on the oral or written application of the appellant, postpone the hearing, or

(b) having commenced the hearing, adjourn it,

they may order that there shall be paid, notwithstanding the appeal, so much of the tax in the assessment as in their opinion, on the basis of the information available, is likely to become payable on or after the determination of the appeal.

(2) In relation to a case in which an order is made under subsection (1) in the absence of the appellant, the following provisions shall have effect:

(a) the inspector or other officer of the Revenue Commissioners shall give notice in writing to the appellant of the making of the order;

(b) the appellant if aggrieved by the order may, within fourteen days after the date of the notice referred to in paragraph (a), make representations in writing to the Special Commissioners in regard to the order;

(c) the Special Commissioners, having considered any representations made to them in accordance with paragraph (b), may either confirm the order or make a revised order, and any such revised order shall supersede the first-mentioned order.

(3) Where the appeal brought before the Special Commissioners for hearing relates to an assessment to income tax (hereafter in this subsection referred to as the relevant assessment) that is one of a number of assessments (hereafter in this subsection referred to as the aggregated assessments) the tax in which is stated in one sum under section 183 (1), the amount of tax in the relevant assessment shall, for the purposes of subsection (1) of this section, be arrived at by deducting from the said one sum the amount of tax, if any, which is payable under section 183 (3); and, where appeals against two or more of the aggregated assessments are brought before the Special Commissioners, the total amount of tax in those assessments shall be arrived at in like manner and the provisions of this section shall apply as if that total amount were an amount of tax in a single assessment.

(4) Where in relation to any assessment an amount of tax has been ordered to be paid under the foregoing provisions of this section—

(a) that amount shall be collected, paid and carry interest as if the appeal against the assessment had been determined when the order was made and the amount of tax specified by the order were the amount of tax chargeable in accordance with the determination, and

(b) on the determination of the appeal against the assessment, any balance of tax chargeable in accordance with the determination shall be paid, or any tax overpaid shall be repaid, as the case may require,

and, in a case to which subsection (2) applies, the order shall, for the purposes of paragraph (a), be deemed to have been made on the date of the notice under subsection (2) (a).

(5) Every reference in this section to an appellant includes a reference to a person acting on behalf of the appellant in relation to the appeal.

(6) Any of the powers conferred on the Special Commissioners by this section may be exercised by one Special Commissioner.

Agreement as to amount of tax not in dispute on an appeal against an assessment.

419. —(1) Where, in a case in which notice of appeal has been given against an assessment to income tax or sur-tax, the appellant and an inspector, or other officer of the Revenue Commissioners, come to an agreement as to the amount of tax charged by the assessment which should be paid notwithstanding the appeal, that amount shall be collected, paid and carry interest in all respects as if it were tax charged by an assessment in respect of which no appeal was pending and, on the determination of the appeal, any balance of tax chargeable in accordance with the determination shall be payable or any tax overpaid shall be repaid, as the case may require.

(2) The reference in subsection (1) to an agreement being come to with an appellant includes a reference to an agreement being come to with a person acting on behalf of the appellant in relation to the appeal.

Publication of reports of cases stated.

420. —The holding in camera in pursuance of section 416 (10) of the hearing of a case stated relative to income tax or sur-tax shall not preclude the publication, in the law reports published by the Incorporated Council of Law Reporting for Ireland or in any other recognised law reports or in any reports printed with the permission of the said Incorporated Council, of a report of the proceedings before, or the judgments given by, the High Court or the Supreme Court, but no such report shall disclose the name of the person whose chargeability to tax is the subject of the case.

Procedure on appeals.

421. —(1) The inspector may attend every appeal, and shall be entitled—

(a) to be present during all the time of the hearing and at the determination of the appeal; and

(b) to produce any lawful evidence in support of the assessment; and

(c) to give reasons in support of the assessment.

(2) Upon any appeal the Special Commissioners shall permit any barrister or solicitor to plead before them on behalf of the appellant or officers, either viva voce or in writing, and shall hear any accountant, being any person who has been admitted a member of an incorporated society of accountants.

(3) If, on an appeal, it appears to the Commissioners by whom the appeal is heard, or to a majority of such Commissioners, by examination of the appellant on oath or affirmation, or by other lawful evidence, that the appellant is overcharged by any assessment, the Commissioners shall abate or reduce the assessment accordingly, but otherwise the assessment shall stand good.

(4) If, on any appeal, it appears to the Commissioners that the person assessed ought to be charged in an amount exceeding the amount contained in the assessment, they shall charge him with the excess.

Power to issue precepts.

422. —(1) Where notice of appeal has been given against an assessment, the Special Commissioners may, whenever it appears to them to be necessary for the purposes of this Act, issue a precept to the appellant ordering him to deliver to them, within the time limited by the precept, a schedule containing such particulars, for their information, as they may demand under the authority of this Act respecting—

(a) the property of the appellant; or

(b) the trade, profession or employment carried on or exercised by him; or

(c) the amount of his profits or gains, distinguishing the particular amounts derived from each separate source; or

(d) any deductions made in arriving at his profits or gains.

(2) The Special Commissioners may issue further precepts whenever they consider it necessary for the purposes aforesaid, until complete particulars have been furnished to their satisfaction.

(3) A precept may be issued by one Special Commissioner.

(4) A person to whom a precept is issued shall deliver the schedule required, within the time limited.

(5) Any inspector may, at all reasonable times, inspect and take copies of, or extracts from, any schedule.

Objection by inspector to schedules.

423. —(1) The inspector may, within a reasonable time to be allowed by the Special Commissioners after examination by him of any schedule, object to the schedule or any part thereof, and in that case shall state in writing the cause of his objection, according to the best of his knowledge or information.

(2) In every such case he shall give notice in writing of his objection to the person chargeable in order that he may, if he thinks fit, appeal against it.

The notice shall be under cover and sealed, and addressed to the person chargeable.

(3) No assessment shall be confirmed or altered until any appeal against the objection has been heard and determined.

Confirmation and amendment of assessments.

424. —If—

(a) the Special Commissioners see cause to disallow an objection of the inspector to a schedule; or

(b) on the hearing of an appeal, the Special Commissioners are satisfied with the assessment, or if, after the delivery of a schedule, they are satisfied therewith and have received no information as to its insufficiency,

they shall confirm or alter the assessment in accordance with the schedule, as the case may require.

Questions as to assessments or schedules.

425. —(1) Whenever the Special Commissioners are dissatisfied with a schedule or require further information relating thereto, they may, at any time and from time to time, by precept, put any questions in writing concerning the schedule, or any matter which is contained or ought to be contained therein, or concerning any deductions made in arriving at the profits or gains, and the particulars thereof, and may require true and particular answers in writing, signed by the person chargeable, to be given within seven days after the service of the precept.

(2) The person chargeable shall, within the time limited, either answer any such questions in writing signed by him, or shall tender himself to be examined orally before the Commissioners, and may object to, and refuse to answer, any question, but the substance of any answer given by him orally shall be taken down in writing in his presence and be read over to him, and after he has had liberty to amend any such answer he may be required to verify the answer on oath to be administered to him by any one of the Commissioners, and the oath shall be subscribed by the person by whom it is made.

(3) Where any clerk, agent or servant of the person chargeable tenders himself, on behalf of that person, to be examined orally before the Commissioners, the same provisions shall apply to his examination as in the case of the person chargeable who tenders himself to be examined orally.

Summoning and examination of witnesses.

426. —(1) The Special Commissioners may summon any person whom they think able to give evidence respecting an assessment made on another person to appear before them to be examined, and may examine such person on oath. The clerk, agent, servant or other person confidentially employed in the affairs of a person chargeable shall however be examined in the same manner, and subject to the same restrictions, as in the case of a person chargeable who tenders himself to be examined orally.

(2) The oath shall be that the evidence to be given, touching the matter in question, by the person sworn shall be the truth, the whole truth and nothing but the truth, and the said oath shall be subscribed by the person by whom it is made.

(3) A person who after being duly summoned—

(a) neglects or refuses to appear before the Commissioners at the time and place appointed for that purpose; or

(b) appears, but refuses to be sworn or to subscribe the oath; or

(c) refuses to answer any lawful question touching the matters under consideration,

shall forfeit a sum not exceeding £20:

Provided that the penalty imposed in respect of any offence under paragraph (b) or (c) shall not apply to any clerk, agent, servant or other person as aforesaid.

Determination of liability in cases of default.

427. —If—

(a) a person has neglected or refused to deliver a schedule in accordance with a precept of the Special Commissioners; or

(b) any clerk, agent or servant of, or any person confidentially employed by, a person chargeable, having been summoned, has neglected or refused to appear before the Commissioners to be examined; or

(c) the person himself or his clerk, agent or servant or other person as aforesaid, has declined to answer any question put to him by the Commissioners; or

(d) an objection has been made to a schedule, and the objection has not been appealed against; or

(e) the Commissioners decide to allow any objection made by the inspector,

the Commissioners shall ascertain and settle, according to the best of their judgment, the sum in which the person chargeable ought to be charged.

Statement of case for High Court.

428. —(1) Immediately after the determination of an appeal by the Special Commissioners, the appellant or the inspector, if dissatisfied with the determination as being erroneous in point of law, may declare his dissatisfaction to the Commissioners who heard the appeal.

(2) The appellant or inspector, as the case may be, having declared his dissatisfaction, may, within twenty-one days after the determination, by notice in writing addressed to the Clerk to the Commissioners, require the Commissioners to state and sign a case for the opinion of the High Court thereon.

(3) The party requiring the case shall pay to the Clerk to the Commissioners a fee of twenty shillings for and in respect of the same, before he is entitled to have the case stated.

(4) The case shall set forth the facts and the determination of the Commissioners, and the party requiring it shall transmit the case, when stated and signed, to the High Court within seven days after receiving it.

(5) At or before the time when he transmits the case to the High Court, the party requiring it shall send notice in writing of the fact that the case has been stated on his application, together with a copy of the case, to the other party.

(6) The High Court shall hear and determine any question or questions of law arising on the case, and shall reverse, affirm or amend the determination in respect of which the case has been stated, or shall remit the matter to the Commissioners with the opinion of the Court thereon, or may make such other order in relation to the matter, and may make such order as to costs as to the Court may seem fit.

(7) The High Court may cause the case to be sent back for amendment, and thereupon the case shall be amended accordingly, and judgment shall be delivered after it has been amended.

(8) An appeal shall lie from the decision of the High Court to the Supreme Court.

(9) Notwithstanding that a case has been required to be stated or is pending, tax shall be paid in accordance with the determination of the Special Commissioners or the Circuit Court as the case may be:

Provided that, if the amount of the assessment is altered by the order or judgment of the Supreme Court or the High Court, then—

(a) if too much tax has been paid, the amount overpaid shall be refunded with such interest, if any, as the Court may allow; or

(b) if too little tax has been paid, the amount unpaid shall be deemed to be arrears of tax (except so far as any penalty is incurred on account of arrears), and shall be paid and recovered accordingly.

Appeal to Circuit Court.

429. —(1) Any person who is aggrieved by the determination of the Special Commissioners in any appeal against an assessment made upon him may, on giving notice in writing to the inspector, within ten days after such determination, require that his appeal shall be reheard by the judge of the Circuit Court in whose circuit is situate, in the case of—

(a) a person who is not resident in the State,

(b) the estate of a deceased person,

(c) an incapacitated person, or

(d) a trust,

the place where the assessment was made, and, in any other case, the place to which the notice of assessment was addressed, and the Special Commissioners shall transmit to the said judge, any statement or schedule in their possession which was delivered to them for the purposes of the appeal.

(2) The said judge shall, with all convenient speed, rehear and determine the appeal, and shall have and exercise the same powers and authorities in relation to the assessment appealed against, the determination, and all matters consequent thereon, as the Special Commissioners might have and exercise, and his determination thereon shall, subject to section 430, be final and conclusive.

(3) The judge shall make a declaration in the form of the declaration required to be made by a Special Commissioner as set out in Schedule 17, Part I.

Extension of section 428.

430. —(1) Section 428 shall, subject to the provisions of this section, apply to a determination given by a judge pursuant to section 429 in like manner as it applies to a determination by the Special Commissioners.

(2) The notice in writing required under section 428 (2) to be addressed to the Clerk to the Commissioners shall, in every case in which a judge is under the authority of this section required by any person to state and sign a case for the opinion of the High Court thereon, be addressed by such person to the county registrar.

(3) The fee required under section 428 (3) to be paid to the Clerk to the Commissioners shall in any such case as aforesaid be paid to the county registrar.

Communication of decision of Special Commissioners.

431. —(1) Where the Special Commissioners have entertained an appeal against an assessment for any year of assessment and, after hearing argument on the appeal, have postponed giving their determination either for the purpose of considering the argument or for the purpose of affording to the appellant an opportunity of submitting in writing further evidence or argument, the Special Commissioners may, unless they consider a further hearing to be necessary, cause their determination to be sent by post to the parties to the appeal.

(2) Where the determination of an appeal by the Special Commissioners is sent to the parties by post under this section, a declaration of dissatisfaction under section 428 (1) or a notice requiring a rehearing under section 429 (1) may be made or given in writing within twelve days after the day on which the determination is so sent to the person making the declaration or giving the notice.

Making of claims, etc., and appeals and rehearings.

432. —(1) Notwithstanding any other provision of this Act—

(a) all claims of exemption or for any allowance or deduction under this Act,

(b) all claims for repayment of tax under this Act, and

(c) (i) all claims to relief under this Act where the relief is measured in the provision under which it is given, and

(ii) all matters and questions relating to any relief so measured,

in relation to which a right of appeal from a decision of the Special Commissioners is, otherwise than by this section, not specifically provided,

shall be stated in such manner and form as the Revenue Commissioners may prescribe and shall be submitted to and determined by the Revenue Commissioners or such officer of the Revenue Commissioners (including an inspector) as they may authorise in that behalf, but any person aggrieved by any determination on any such claim, matter or question may, on giving notice in writing to the Revenue Commissioners or the officer within twenty-one days after notification to the person aggrieved of the determination, appeal to the Special Commissioners.

(2) The Special Commissioners shall hear and determine an appeal to them under subsection (1) as if it were an appeal against an assessment to income tax, and the provisions of this Act relating to the rehearing of an appeal and the statement of a case for the opinion of the High Court on a point of law shall apply accordingly with any necessary modifications.

(3) Where—

(a) a right of appeal to the Special Commissioners is given by any provision (other than section 203 or paragraph 2 of Schedule 16) of this Act, and

(b) such provision, while applying the provisions of this Act relating to appeals against assessments, does not apply the provisions thereof relating to rehearing of appeals,

such provision shall be deemed to apply the said provisions relating to rehearing of appeals.

(4) In a case in which—

(a) a notice of appeal is not given within the time limited by subsection (1), or

(b) a person who has given notice of appeal does not attend before the Special Commissioners at the time and place appointed for the hearing of his appeal,

the provisions of section 416 (5), (7), (8) and (9) shall apply, with any necessary modifications.