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6 1967

INCOME TAX ACT, 1967

PART XXXV

Penalties and Assessments

Application of Part XXXV.

499. —The following provisions of this Part shall have effect in relation to any penalties incurred (whether by commission or omission) after the passing of this Act with respect to any year of assessment whether ending before or ending after such passing.

Penalties for failure to make certain returns, etc.

500. —(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 15, 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 he fails to comply with the notice or precept, or

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

he shall, subject to subsection (2) and to section 503, be liable to a penalty of £100 and, if the failure continues after judgment has been given by the court before which proceedings for the penalty have been commenced, to a further penalty of £10 for each day on which the failure so continues.

(2) Where the said notice was given under or for the purposes of any of the provisions specified in column 1 of the said Schedule and the failure continues after the end of the year of assessment following that during which the notice was given, the first of the penalties mentioned in subsection (1) shall be £250.

(3) The preceding provisions of this section shall have effect subject to the proviso to section 169 (4) and the proviso to section 178 (1).

Penalty for fraudulently or negligently making incorrect returns, etc.

501. —(1) Where a 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 15,

(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 Special Commissioners or an inspector any incorrect accounts in connection with the ascertainment of his liability to income tax or sur-tax,

he shall, subject to section 503, 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 section 502 (1).

(2) Where a 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 15, he shall, subject to section 503, be liable to a penalty of £100, or, in the case of fraud, of £250.

(3) Where any such return, statement, declaration or accounts as is or are mentioned in subsection (1) was or were made or submitted by a person neither fraudulently nor negligently and it comes to his notice (or, if he has died, to the notice of his personal representatives) that it or they was or 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 him.

(4) Subject to section 504 (2), proceedings for the recovery of any penalty under subsection (1) or (2) shall not be out of time by reason that they are commenced after the time allowed by section 511.

Provisions supplementary to section 501.

502. —(1) The difference referred to in section 501 (1) (ii) is the difference between—

(a) the amount of tax payable for the relevant years of assessment by the said person (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 him had been correct.

(2) The relevant years of assessment for the purposes of subsection (1) are, in relation to anything delivered, made or submitted in any year of assessment, that year, the next following year, and any preceding year of assessment; and the references in that subsection to the amount of tax payable include sur-tax, except that, in relation to anything done in connection with a partnership, they do not include any tax not chargeable in the partnership name.

(3) For the purposes of section 501, any accounts submitted on behalf of a person shall be deemed to have been submitted by that person unless he proves that they were submitted without his consent or knowledge.

Increased penalties in the case of body of persons.

503. —(1) Where the person mentioned in section 500 is a body of persons—

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

(i) in case the notice was given under or for the purposes of any of the provisions specified in column 1 of Schedule 15 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 case the notice was given under or for the purposes of any of the provisions specified in column 1 of Schedule 15 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.

(2) Where the person mentioned in section 501 is a body of persons—

(a) in the case of such fraud or negligence as is mentioned in section 501 (1)—

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

(I) £500, and

(II) the amount, or, in the case of fraud, twice the amount, of the difference specified in section 502 (1), and

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

(b) in the case of any such fraud or negligence as is mentioned in section 501 (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.

(3) The preceding provisions of this section shall have effect subject to the proviso to section 169 (4) and the proviso to section 178 (1), but otherwise shall have effect notwithstanding anything contained in this Act.

Proceedings against executor or administrator.

504. —(1) Where the person who has incurred any penalty has died after the passing of this Act, any proceedings under this Act which have been or could have been commenced against him may be continued or commenced against his 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 estate.

(2) Proceedings commenced by virtue of subsection (1) may be begun at any time not later than three years after the expiration of the year of assessment in which the deceased person died in a case in which the grant of probate or letters of administration was made in that year and at any time not later than two years after the expiration of the year of assessment in which such grant was made in any other case, but the foregoing provisions of this subsection shall have effect subject to the proviso that where the executor or administrator lodges a corrective affidavit for the purpose of assessment of estate duty after the year of assessment in which the deceased person died, the proceedings may be begun at any time before the expiration of two years next after the end of the year of assessment in which the corrective affidavit was lodged.

Penalty for assisting in making incorrect return, etc.

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

Evidence of income for purposes of Part XXXV.

506. —For the purposes of this Part, any assessment which can no longer be varied by the Special Commissioners on appeal or by the order of any court shall be sufficient evidence that the income in respect of which tax is charged in the assessment arose or was received as stated therein.

Failure to act within required time.

507. —For the purposes of this Part, a person shall be deemed not to have failed to do anything required to be done within a limited time if he 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, he shall be deemed not to have failed to do it if he did it without unreasonable delay after the excuse had ceased.

Recovery of penalties.

508. —(1) Without prejudice to any other mode of recovery of a penalty under the preceding provisions of this Part, or section 238, 240 or 296, an officer of the Revenue Commissioners, authorised by them for the purposes of this subsection, may sue in his own name by civil proceedings for the recovery of the penalty in the High Court as a liquidated sum and the provisions of section 94 of the Courts of Justice Act, 1924 , shall apply accordingly.

(2) If 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 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 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 the following facts, namely, that a person is an officer of the Revenue Commissioners and that he has been authorised by them for the purposes of subsection (1), shall be evidence until the contrary is proved of those facts.

(4) In proceedings pursuant to this section, a certificate signed by a Revenue Commissioner certifying the following facts, namely, that the plaintiff has ceased to be an officer of the Revenue Commissioners authorised by them for the purposes of subsection (1), that another person is an officer of the Revenue Commissioners, that such other person has been authorised by them for the purposes of subsection (1) and that he has been nominated by them, in relation to the proceedings, for the purposes of subsection (2), shall be evidence until the contrary is proved of those facts.

(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.

Definitions.

509. —In the preceding provisions of this Part—

assessment” includes additional assessment;

secretary” includes such persons as are mentioned in section 207 (2).

Proceedings for certain penalties.

510. —Notwithstanding that the amount of a penalty recoverable under this Act cannot be definitely ascertained by reason of the fact that the amount of 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 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.

511. —Proceedings for the recovery of any fine or penalty incurred under this Act in relation to or in connection with income tax or sur-tax may, subject to section 504, be begun at any time within six years next after the date on which such fine or penalty was incurred.

Mitigation and application of fines and penalties.

512. —(1) The Revenue Commissioners may, in their discretion, mitigate any fine or penalty, or stay or compound any proceedings for recovery thereof, and may also, after judgment, further mitigate or entirely remit the fine or penalty, and may order any person imprisoned for any offence to be discharged before the term of his imprisonment has expired. The Minister for Finance may mitigate or remit any such fine or penalty, either before or after judgment.

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

Power to add penalties to assessments.

513. —Where an increased rate of 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 like manner as any tax included in such assessment may be collected and levied.

Saving for criminal proceedings.

514. —The provisions of this Act shall not affect any criminal proceedings for any felony or misdemeanour.

Fine for obstruction of officers in execution of duties.

515. —(1) If any person, by himself or by any person in his employ, obstructs, molests, or hinders—

(a) an officer or any person employed in relation to any duty of income tax in the execution of his 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;

he 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 same 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.

Penalty for false statement made to obtain allowance.

516. —If any person, for the purpose of obtaining any allowance, reduction, rebate, or repayment in respect of tax either for himself or for any other person, or in any return made with reference to tax, knowingly makes any false statement or false representation, he shall be liable, on summary conviction, to imprisonment for a term not exceeding six months and any person shall also be liable as aforesaid if he knowingly and wilfully aids, abets, assists, incites or induces another person to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax.

Time for certain summary proceedings.

517. —Notwithstanding subsection (4) of section 10 of the Petty Sessions (Ireland) Act, 1851, summary proceedings under section 128, 173, 413 or 516 may be instituted within three years from the date of the committing of the offence or incurring of the penalty (as the case may be).

False evidence: punishment as for perjury.

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

Limitation of penalties on officers employed in execution of Act.

519. —(1) A commissioner, sheriff, county registrar, clerk, inspector, assessor, or Collector who acts, or is employed, in the execution of this Act, shall not be liable to any penalty in respect of such execution other than is by this Act provided.

(2) Where any civil or criminal proceeding, against any officer or person employed in relation to any duty of income tax on account of the seizure or detention of any goods, is brought to trial, and a verdict or judgment is given thereupon against the defendant, if the court or judge certifies that there was probable cause for the seizure, the plaintiff shall not be entitled to any damages, besides the goods seized, or the value thereof, nor to any costs, and the defendant shall not be liable to any punishment.

Refusal to allow deduction of tax.

520. —(1) A person who refuses to allow a deduction of tax authorised by this Act 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.

Admissibility of statements and documents in criminal and tax proceedings.

521. —(1) Statements made or documents produced by or on behalf of a person shall not be inadmissible in any such proceedings as are mentioned in subsection (2), by reason only that it has been drawn to his attention that—

(a) in relation to income tax or sur-tax, the Revenue Commissioners may accept pecuniary settlements instead of instituting proceedings, and

(b) though 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 he has been a party, and has given full facilities for investigation,

and that he 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 sur-tax; and

(b) any proceedings against him for the recovery of any sum due from him, whether by way of tax, fine, forfeiture or penalty, in connection with or in relation to income tax or sur-tax.