Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I will read the short note. Essentially, it arose from the PAYE modernisation review. The section provides for amendments to sections 990, 984B and 985G of the TCA 1997 to include a four-year time limit for pay-related employer assessments and refunds. A consequential amendment to section 531AOA of the TCA is also being made in respect of USC, to reflect the four-year time limit.

There are a number of provisions in the tax Acts which implement time limits. The general rule is that a four-year time limit applies to taxpayers when claiming reliefs for allowances and to Revenue when making assessments unless fraud or neglect is suspected, or no tax return has been filed. Although a time limit previously applied to pay-related employer PAYE refunds under section 865 of the TCA, the introduction of PAYE modernisation in 2019 has made this section redundant. This section clarifies in section 997 of the TCA that there is no time limit in respect of assessments on a chargeable person in cases where that chargeable person's income tax return is not filed or is incomplete.

In line with the rules for other similar measures, the amendments provide for a right of appeal. This will allow a taxpayer to make an appeal to the appeal commissioners where they feel aggrieved by an amended assessment or a refusal by Revenue of a claim for repayment. The amendments aim to provide clarity and certainty to both Revenue and the taxpayer in respect of historical tax liabilities and when pay-related employer assessments and refunds can be made, aligning the time limits with those for income tax and corporation tax provided for under the TCA. In effect, the introduction of modernisation in 2019 made the previous section redundant therefore we have to provide for it in the Finance (No. 2) Bill.