51. Determinations on rates and exemptions

Summary

This section deals with the power given to Revenue to determine the rate of tax chargeable on the supply of goods or services of any kind, or in any particular circumstances, or to determine whether or not a particular activity is exempt. The purpose is to clarify areas of genuine doubt. Determinations may be made at the request of an accountable person or the Revenue Commissioners may make one on their own initiative.

Details

(1) On the application of an accountable person, Revenue must determine whether a particular activity is taxable or exempt; and if it is taxable, what is the appropriate rate of tax chargeable. Before making any such determination, they may consult anyone whom they consider may be of assistance to them – for example, relevant industry representatives.

(2) Revenue may, on their own initiative, make a determination about any of the matters referred to in subsection (1). For example, Revenue might use this power to remove doubts, if they felt that confusion existed among traders about the correct rate of tax chargeable on the supply of goods or services of any kind.

(3) The date from which a determination under subsection (1) will have effect is the date specified in the determination communicated to the trader who requested the determination. The date from which a determination under subsection (2) will have effect is the date specified in the determination as published in Iris Oifigiúil.

(4) Revenue is prevented from making a determination about any matter which has already been determined on appeal or which is governed by an order made by the Minister for Finance. Also, since the basic reason for making a determination is to remove doubt, Revenue will not make a determination if no real doubt exists about the correct rate chargeable – for instance, if they had already determined the rate or if it is clear that the trading community generally are agreed on what the correct rate is.

(5) The manner in which a determination may be published is set out in subsection (5). In the case of a trader who applies for a determination under subsection (1), a notice containing particulars of the determination must be communicated to him/her and may also be published in Iris Oifigiúil. A determination under subsection (2) above has no effect until it is published in Iris Oifigiúil and in at least one daily newspaper.

(6) A right of appeal to the Appeal Commissioners against a determination is provided for. A person aggrieved by a determination may lodge an appeal in accordance with section 949I of the Taxes Consolidation Act 1997 within the period of 30 days after the date of the notice containing particulars of the determination.

(7) Any accountable person aggrieved by a determination may lodge an appeal in accordance with section 949I of the Taxes Consolidation Act 1997 within the period of 30 days after the date of publication of particulars of the determination. The right of appeal is, however, confined to persons in the course of business and a member of the public in his or her private capacity cannot be a party to an appeal.

Relevant Date: Finance Act 2020