Value-Added Tax (Amendment) Act, 1978

Determination of tax due.

17.—The following section shall be substituted for section 23 of the Principal Act:

“(1) Where, in relation to any period consisting of one taxable period or of two or more consecutive taxable periods, the Revenue Commissioners have reason to believe that an amount of tax is due and payable to them by a person in any of the following circumstances:

(a) the total amount of tax payable by the person was greater than the total amount of tax (if any) paid by him,

(b) the total amount of tax refunded to the person in accordance with section 20 (1) was greater than the amount (if any) properly refundable to him, or

(c) an amount of tax is payable by the person and a refund under section 20 (1) has been made to the person,

then, without prejudice to any other action which may be taken, they may, in accordance with regulations but subject to section 30, make an estimate in one sum of the total amount of tax which in their opinion should have been paid or the total amount of tax (including a nil amount) which in accordance with section 20 (1) should have been refunded, as the case may be, in respect of the taxable period or periods comprised in such period and may serve a notice on the person specifying—

(i) the total amount of tax so estimated,

(ii) the total amount of tax (if any) paid by the person or refunded to the person in relation to the said period, and

(iii) the total amount so due and payable as aforesaid (referred to subsequently in this section as ‘the amount due’).

(2) Where notice is served on a person under subsection (1), the following provisions shall apply:

(a) the person may, if he claims that the amount due is excessive, on giving notice to the Revenue Commissioners within the period of twenty-one days from the date of the service of the notice, appeal to the Appeal Commissioners, and

(b) on the expiration of the said period, if no notice of appeal is received or, if notice of appeal is received, on determination of the appeal by agreement or otherwise, the amount due, or the amended amount due as determined in relation to the appeal, shall become due and payable as if the tax were tax which the person was liable to pay for the taxable period during which the period of fourteen days from the date of the service of the notice under subsection (1) expired or the appeal was determined by agreement or otherwise, whichever taxable period is the later.”.