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Income Tax Regarding TCA97 s997, 24 AC 2000 Facts:
PAYE was operated by the Appellant's employer using a certificate of tax
free allowances which overstated the amount of allowances properly due for the
year 1997/98. The Inspector of Taxes raised an assessment for the year showing a
credit for the tax actually deducted by the employer. Arguments:
The Appellant argued that the amount of the assessment was equivalent to
the amount of tax "...estimated to be deductible..." and that he was
entitled to a credit of that amount in accordance with Section 997 with the
result that his liability was reduced to nil. The Revenue
Commissioners argued that the taxpayer was entitled to a credit in the amount of
tax deducted and that he was not entitled to a credit of any other amount. Decision:
The
meaning of the Section is clear in that it requires some credit to be given for
either the tax actually deducted from emoluments (where the amount is known) or
an estimate of the tax which might be deductible or have been deducted (where
the amount is not known). It is obvious that failure to give credit for tax
which would normally be deducted from emoluments would give rise to many
overpayments and result in administrative inefficiencies. Whether
credit for tax deducted or estimated as being deductible from emoluments has
been given or, indeed, even if the inspector had ignored the requirements of the
Section completely there does not seem to be anything in the Section which
prevents an inspector from using the actual amount of tax which was deducted
from the emoluments in computing the balance of tax payable by the taxpayer for
the year. Even on the
basis of the construction of the section argued for by the taxpayer it is
difficult to conclude that the section requires an inspector of taxes to give
credit for tax which should have been deducted from emoluments. The taxpayer
appears to be arguing that the inspector has no option but to insert the higher
of the tax actually deducted or the tax which would have been deducted had the
correct tax free allowance certificate been in the hands of the person paying
the emoluments. The section does not impose such an obligation on
the inspector
but gives him the option of using the tax actually deducted or an amount which
he estimates to be deductible. For the
reasons set out above, the appeal fails. |
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Copyright © 2000-2003 Office of the Appeal Commissioners
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