Tax Appeals Commission determination 29TACD2022 regarding Income Tax, 2022

• Administrative Decision Number: 29TACD2022
• Year: 2022
• Date: 15 January 2011
• Respondent: THE REVENUE COMMISSIONERS

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29TACD2022

Between/

Appellant

V

THE REVENUE COMMISSIONERS

Respondent

DETERMINATION

1. Factual background & Outline of the issues

1. This appeal comes before the Tax Appeals Commission by way of an appeal against

an Amended Assessment for the 2009 tax year, issued by the Respondent on January

15 2011. The facts giving rise to this appeal are relatively straightforward and not in

dispute between the parties, and are summarised hereafter.

2. The Appellant was throughout 2009 a director and a 99% shareholder in a limited

liability company called Limited, hereinafter referred to

as “the Company”. The Company was engaged in the business.

3. The P35 declared by the Company for 2009 showed a PAYE liability of €16,296 and

an Income Levy liability of €4,199, giving a total tax liability of €20,495. Of this,

€7,337 in respect of PAYE and €686 in respect of Income Levy were attributable to

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the Appellant. The P35 also showed an Employee PRSI liability of €13,895 and an

Employer’s PRSI liability of €24,122, giving rise to a total PRSI liability of €38,017.

The Appellant’s Employee PRSI liability was €2,602.

4. The Company made monthly payments to the Collector General in respect of PAYE,

PRSI and Income Levy deducted from employees’ remuneration, together with

Employer’s PRSI contribution due. The Company paid €37,500 by direct debit during

the 2009 tax year which was allocated by the Respondent on a monthly basis as to

€12,375 for PAYE and Income Levy and €25,125 for PRSI. In addition to the direct

debit payments, the Company also made two cheque payments during 2009 totalling

€826.37, which were allocated as to €489.20 for PAYE and Income Levy and €337.17

for PRSI.

5. The Respondent’s records indicated that as the Company had total tax liabilities of

€20,495 and had paid tax of €12,684.20, there was an underpayment of tax in the

sum of €7,630.80 in the 2009 tax year.

6. On 2010, the Company was placed in a creditors’ voluntary liquidation.

7. On 22 October 2010, the Respondent issued the Appellant with a PAYE balancing

statement (P21) for the 2009 tax year which recorded, inter alia, that the Appellant

had been given credit for taxes deducted by the Company in the sum of €7,337. This

resulted in an overpayment of tax by the Appellant of €119.77, which was duly

refunded by the Respondent.

8. On 15 January 2011, the Respondent issued a Notice of Amended Assessment for the

2009 tax year. This was issued on the basis that the Company had an unpaid PAYE

liability of €6,067.40. As the amount of PAYE unpaid was less than the PAYE of

€7,337 deducted from the Appellant, the Respondent deemed the underpayment