Tax Appeal cases for employee tax credit

Dec 11, 2017

Two appeals before the Tax Appeals Commission concerned the entitlement to the employee tax credit against tax arising on the increased old age contributory pension payment on behalf of the taxpayer’s spouse.   Both cases were found in favour of the taxpayer.   We requested guidance from Revenue on the options available to taxpayers who may wish to “lodge claims” based on the determinations. 

Both determinations at the request of Revenue have been stated for the opinion of the High Court.  Until such time that the final decision of the courts is made, any claims for tax repayment will not be processed by Revenue. 

At a recent TALC meeting, we discussed with Revenue members’ particular concerns for claims in respect of the 2013 tax year which, due to the four year limitation period, must be made before the end of 2017.   The advice from that meeting is to submit a protective claim for amendments to the income tax return and consequently a tax repayment along with details of the case to Revenue via MyEnquiries. 

While MyEnquiries is the preferable route, alternatively, a letter can be sent to the relevant Tax District which should clearly state that it concerns a protective claim on the basis of the determinations and details of the case. 

By way of brief background to the cases:

Appeal Case - 17TACD2017  - the taxpayer claimed that the increase in the amount of his old age pension on the basis that he had living with him a “qualified adult dependent”,  his spouse meant that his spouse was in receipt of “emoluments” in accordance with section 472 TCA 1997.   Therefore, the taxpayer claimed the employee tax credit against the tax arising on the increase amount of the pension payment.  

Similarly, Appeal case - 18TAC2017 - the taxpayer claimed entitlement to the employee tax credit and the increase in the standard rate band in respect of the increased pension paid on behalf of the taxpayer’s spouse.