Michael Ring (Mayo, Fine Gael)
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275. To ask the Minister for Finance if he will explain what is meant by "the four-year rule", as recently quoted by a tax appeal commissioner, when overturning a tax assessment by Revenue; if he will provide the relevant legislation that contains this provision; if he will detail whether any other similar assessment has been made by Revenue but which was not appealed; the number of such assessments; and if he will make a statement on the matter. [23108/23]

Michael McGrath (Cork South Central, Fianna Fail)
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I am advised by Revenue that in this context the “four-year rule” is the general four-year time limit on a Revenue officer’s right to make or amend assessments. This time limit runs from the end of the year of assessment (that is, the tax year or company accounting period) in which the tax return is filed. For example, if an individual filed an income tax return and self-assessment for the 2021 tax year in October 2022, a Revenue officer normally has until four years from the end of 2022 – that is, until 31 December 2026 – to amend that assessment. This legislation is contained in section 959AA Taxes Consolidation Act 1997 (TCA); up to 31 December 2012 the relevant provision was section 955 TCA (which was the legislation considered in the appeal case mentioned by the Deputy).

A Revenue officer also normally has four years from the end of the year in which a return is filed in which to make enquiries into that return. This is provided for in section 959Z TCA and was in section 956 TCA up to 31 December 2012.

A Revenue official has the right to make enquiries and make or amend assessments outside the normal four year period in certain circumstances: for example, where a taxpayer who should have filed a return has not done so; where the Revenue officer is not satisfied that a return is sufficient or that it contains a full and true disclosure; in cases where the officer has reasonable grounds for believing that any form of fraud or neglect has been committed; and in the context of the application of certain anti-avoidance rules.

I am advised by Revenue that a limited number of assessments are made outside the four-year period, some of which have been appealed and have been upheld by the Tax Appeals Commissioners. The figure for the number of assessments raised outside the four-year period is not readily available but Revenue will provide an update as soon as possible.

Revenue is aware of the case mentioned by the Deputy and is considering the determination.