Revenue Precedents

Does a hotel have to be registered as a hotel with Bord Fáilte in order for it to be regarded as a building or structure in use for the purposes of the trade of hotel keeping? There is no requirement that a building be registered as a hotel with Bord Fáilte for it to be regarded as a building in use for the purposes of the trade of hotel keeping. IT973009

Can capital allowances be claimed on the office comprised in the premises which is registered by Bord Fáilte under the Registration and Renewal of Holiday Cottages regulations? Section 268(3) Taxes Consolidation Act 1997 provides that a building in use as a holiday cottage and comprised in premises registered in any register of holiday cottages established by Bord Fáilte Éireann shall be deemed to be a building in use for the purposes of the trade of hotel-keeping. Therefore only the building used as a holiday cottage qualifies for allowances and not the office. 954

In order for a holiday camp to qualify for industrial buildings allowances is it necessary for it to be registered as a holiday camp with Bord Fáilte?. There is no requirement that a holiday camp be registered as a holiday camp with Bord Fáilte. Section 37 of the Tourist Traffic Act 1939 states that: “it shall not be lawful to describe or holdout or permit any person to describe or holdout any premises as a holiday camp unless such premises are registered in the Register of Holiday camps and such proprietor is registered as the registered proprietor of the holiday camp”. Thus, while it is illegal to hold out a premises as a holiday camp unless it is registered with Bord Fáilte, the fact that it is not registered does not mean that it is not a holiday camp – just that it cannot be held out as such. IT953025

An individual incurs expenditure on the construction of a holiday cottage and leases it to an operator. If the operator rather than the individual registers the cottage in the Register of Holiday Cottages maintained by Bord Fáilte will the building be regarded as an industrial building within the meaning of section 268? The section is silent on who actually registers the property. Therefore an operator may register properties owned by other parties. 951

Whether a jetty on the Shannon used for charter cruisers is an industrial building or structure? Section 268(2) of the Taxes Consolidation Act provides that a dock includes a jetty at which vessels can ship or unship passengers, not being a jetty primarily used for recreation. The occupants of bareboat charters may be regarded as passengers and boarding these vessels comes within the test to “ship or unship”. The jetty itself is not used primarily for recreation it is used to gain access to the boats. It therefore comes within the meaning of industrial building or structure. 958

Whether a hostel which offers budget accommodation to tourists is a building or structure in use for the purposes of the trade of hotel-keeping? Section 268(1)(d) of the Taxes Consolidation Act, 1997 provides that an industrial building or structure means a building or structure in use for the purposes of. inter alia, the trade of hotel-keeping. Since hotel-keeping is not defined in the Act it must be construed in the ordinary sense of the word. Revenue's view is that the following factors must be considered when deciding whether a building is in use for the trade of hotel-keeping: 1. the establishment must provide sleeping accommodation, food and drink. The provision of alcoholic drink is not a requirement. 2. There is an obligation on the hotel-keeper to receive all lawful travellers. Travellers include all comers to the hotel whether they avail of sleeping accommodation or not. The hotel-keeper must therefore provide food for all reasonable times, such as breakfast lunch and evening meals, as a matter of course, to the public at large. A hotel may be contrasted with a guest house in which control may be retained over the choice of lodgers to be admitted, and in which there is no obligation to the public generally. 3. The hotel-keeper is liable for the property of the persons in his establishment without them having to prove negligence. 4. the term hotel-keeping implies a certain standard of facilities and services e.g. reception desk, adequately trained kitchen staff and hall porter. A minimum number of rooms are required in order to provide facilities and services intrinsic to hotel-keeping. It is a question of fact whether or not such facilities are provided at any given number of guest bedrooms. Generally, a building does not have to be registered with Bord Fáilte in order for it to be regarded as a building in use for the trade of hotel-keeping for capital allowances purposes. The fact that it is unlawful for a proprietor to describe or hold out a premises as a hotel is not, by any means, conclusive, as to the nature of the trade being carried out. Only where accelerated capital allowances are being claimed must a hotel be registered with Bord Fáilte. The issue has been the subject of an appeal in the Circuit Court. Based on the particular circumstance of the case a hostel offering budget accommodation to tourists was regarded as a building in use for the purposes of the trade of hotel-keeping. Revenue has appealed the decision to the High Court. GD96047B

Industrial Buildings Allowance was granted in respect of the facilities at a salmon hatchery. 10407/31/92

Industrial Buildings Allowances granted for caravan parks registered with Bord Fáilte. 10407/105/87

Is a building in which grain is subjected to a process of drying an industrial building? On the basis of the case of CIR-v-Leith Harbour and Docks Commissioners the building in this case appears to be similar to a mill. IT 963501