Chapter 4 – Appeals and regulations

119. Appeals

Summary

A new appeals process came into operation on 21 March 2016, by way of Commencement Order, with the enactment of The Finance (Tax Appeals) Act 2015 (please see Tax and Duty Appeals Manual). The appeal provisions are now contained in Part 40A of the Taxes Consolidation Act 1997.

This section provides for appeals, in accordance with section 949I of the Taxes Consolidation Act 1997, in relation to a number of provisions in the Act, including appeals against

• ➢ group registration,
• ➢ certain determinations made by Revenue and
• ➢ claims for repayment.

Any question of fact or law may be brought before the Appeal Commissioners.

Transitional rules

Under the old appeals process, an appellant who was dissatisfied with a determination of the Appeal Commissioners could request a full rehearing of the appeal by a Circuit Court Judge (CCJ). This CCJ rehearing will not be available under the new appeals process. However, the right to such a rehearing will be retained by those appellants whose hearing before the Appeal Commissioners had begun or had been completed before 21 March 2016. Where such a hearing has not begun, an appellant will be restricted to an appeal to the High Court on a point of law.

Because EU law governs VAT, any of the courts may refer the case to the European Court of Justice.

Details

(1) Subsection (1) lists certain specific matters which may be made the subject matter of appeal that are not otherwise provided for in the Act. These include:

• (1)(a) – compulsory group registration, refusal to allow group registration and the cancelling of an existing group registration,
• (1)(b) – the treatment of a person who allows supplies to be made on land owned, occupied or controlled by that person, as jointly and severally liable with another person in accordance with section 17(1),
• (1)(c) – a determination made under section 18(1) in relation to certain sports and leisure facilities or under section 38 in respect of the open market value of a supply of goods or services,
• (1)(d) – the refusal by Revenue to authorise a person to operate as a refunding agent for the VAT retail export scheme,
• (1)(e) – a charge of tax in connection with the issue of an incorrect invoice or an issue of an invoice showing tax by a non-registered person,
• (1)(f) – the refusal by Revenue to approve a refund application under section 101 (intra-Community refunds),
• (1)(g) – a charge of tax in accordance with regulations,
• (1)(h) – a claim for repayment.

An appeal on any of these matters must be made in writing to the Appeal Commissioners in accordance with section 949I of the Taxes Consolidation Act 1997 within the period of 30 days after the date of the relevant notification.

(2) There is also a right of appeal against a refusal by Revenue to treat a person as an accountable person for VAT purposes.

(3) In the context of an appeal against a refusal by Revenue to make a refund under section 101(9), a failure by Revenue to make a decision within the time limits given in that section is also treated as a refusal.

(4) The Income Tax appeal provisions are applied to appeals under sections 51, 81, 109 or 111 and to claims in regard to section 110 and also to appeals in connection with any of the matters referred to in this section. (Sections 51, 81, 109 and 111 have their own appeal provisions.)

(5) The modifications to the Income Tax appeal provisions that are necessary in the VAT context cover references to year of assessment, returns and interest.

The Income Tax references to a year of assessment include a reference to the VAT periods concerned. Likewise, a reference to a return of income includes a reference to a VAT return. The provision regarding interest in subsection (5)(c) is to put beyond doubt that the accrual of interest as it applies to unpaid income tax applies also to unpaid VAT.

(6) In the context of an appeal against an assessment or an amended assessment, the notice must specify each amount or matter being appealed and the detailed grounds in each case.

(7) The appellant cannot bring up a new issue in the appeal that is not in the original notice, unless it is something that could not reasonably have been stated in the notice.

Relevant Date: Finance Act 2020