Revenue Precedents

Payments made under the Emergency Aid Grant, paid by an Bord Iascaigh Mhara to compensate fishermen for poor earnings during adverse weather conditions, are taxable receipts liable to Income Tax. IT953549

Payment received from the Department of agriculture in respect of the grubbing-up of orchards is not chargeable Case I. These appear to be capital in nature and would be chargeable under the Capital Gains Tax rules. IT953511

There are no special arrangements for the taxation of athletes. Athletes are taxable in the normal way i.e. the income earned from all sources, less expenses which have been incurred wholly and exclusively, is assessable. GD95010

Is the sale of copyright subject to Income Tax or Capital Gains Tax? The U.K. case of Nethersole v. Withers (28 TC 501) which was concerned with the sale of copyright in a play is relevant. It contains a useful summary of the case law on the point. To apply the decision to a case it would firstly be necessary to decide if the activities of the taxpayer are in the nature of a trade. If so, the payments are liable to Income Tax and there is no consideration for Capital Gains Tax Purposes. If not, they are capital and liable to Capital Gains Tax. IT933036

A farmer avails of the EC set-a-side scheme and instead of leaving the land fallow grows trees. Are the set-a-side payments in respect of that woodland, which is managed on a commercial basis and with a view to the realisation of profits, exempt from income tax? Payments under the EC schemes for set-aside of land are assessable under the rules of Case I of Schedule D. The payments are to reimburse the farmer for the loss of income which would have accrued had he continued to till the land. Where a farmer receives payments under the set-aside scheme, and afforests the set-aside land; the payments will not be derived from the occupation of woodlands. They will still represent loss of income which would have accrued had tillage continued, and are not therefore exempt under Section 232 Taxes Consolidation Act 1997. IT913022

Where a race horse trainer, who holds a license, trains horses which he or she owns or part owns, the activity is regarded as part of the trade of training. Accordingly, the expenses of training those horses may be allowed as a Case I deduction, and any income from prize money or the sale of horses is part of the income of that trade. IT963004

Revenue do not accept that income arising from holiday cottages registered with Bord Failte are Case I trading receipts. The question of whether the income arising from a particular scheme of holiday cottages is chargeable under the rules of Case I or Case V of Schedule D is one which can only be determined by reference to the facts of each case. IT953544