Case reference

Tax head

Legislation

Case stated requested

Matter under determination

79TACD2021

Income tax

Section 18 TCA 1997
Section 959AA TCA 1997
Section 955 TCA 1997 (applying to years of assessment prior to 2013)
EC Regulation 1782/2003

Yes

This appeal concerns whether Single Farm Payments paid to the Appellants by the Department of Agriculture were taxable as income of the Appellants or formed part of the taxable income of a company owned by the Appellants. The Appellants retained the Single Farm Payments in their own names on the formation of the company to protect against a cut in entitlements under convergence measures being considered by the EU. Having considered the evidence provided by the Appellants, the Appeal Commissioner, although satisfied that the Appellants had granted a licence to the company to use their Single Farm Payment entitlements, found that the company had not registered as the transferee or holder of the Single Farm Payment entitlements of the Appellants with the Department of Agriculture and was never the holder of a registered herd number, and as such was not entitled to receive the payments.
The payments were determined to constitute annual profits or gains of the Appellants arising from property situated in the State and the amended assessments to income tax under Case IV of Schedule D for the years 2010–2014, inclusive, were found to be correct.
The Appeal Commissioner also considered that the returns submitted by the Appellants for 2010 did not make a full and true disclosure of all material facts necessary and so Revenue was entitled to amend the 2010 income tax assessments outside the 4-year time limit.

81TACD2021

Income tax

Section 956 TCA 1997
Section 895 TCA 1997

Yes

This appeal concerns a protective appeal pursuant to section 956(2) related to inquiries into the Appellant’s tax affairs on foot of notification of transactions associated with the Appellant involving an offshore account. The Appeal Commissioner was satisfied that, following the closure of an initial enquiry, a new enquiry had been commenced in 2012 and it was the state of mind of the Revenue inspector concerned on that date that needed to be considered. The fact that the inspector had previously held a different view or belief was said not to prevent him or her from reaching a different conclusion subsequently. The Appeal Commissioner accepted that the inspector believed the returns to be insufficient on enquiry in 2012 and at that time the inspector had reasonable grounds for believing that the Form 12 returns of the Appellant for the 1997 and 1998 tax years were insufficient due to negligence. Accordingly, it was determined that it was lawful for Revenue to continue with its enquiry.
The Appeal Commissioner noted that the determination solely considers the state of mind of the inspector on the relevant date of enquiry and not the validity or otherwise of the evidence of the Appellant.

82TACD2021

PREM

Section 865 TCA 1997

Yes

This appeal concerns claims for repayment of tax arising on the filing of revised P35 end of year tax returns for 2010 and 2011 on 17 May 2027. The Appeal Commissioner determined the claims for repayment of tax could not be allowed, owing to the application of the four-year limitation period for valid claims.

84TACD2021

Income tax

Section 472B TCA 1997

Unknown

The Appeal Commissioner upheld the decision of Revenue in refusing the Seafarer Allowance for the tax years 2015 and 2016, owing to a number of factors, which included the fact that the vessel concerned was not solely used for the trade of carrying passengers or cargo for reward and the Appellant’s employment with a board, authority or other similar body established in the State precluded him for claiming the relief.

87TACD2021

Income tax

Section 865 TCA 1997

Unknown

This appeal concerns the disallowance of a claim for repayment of tax arising in the Appellant’s income tax return for the tax year 2013. The return was filed late in 2019 due to a series of personal and financial problems encountered by the Appellant. The Appeal Commissioner determined that although a valid claim had been made in 2019, the claim for repayment of tax was not allowed, owing to the application of the four-year limitation period for valid claims.

92TACD2021

CGT

Section 28 TCA 1997
Section 29 TCA 1997
Section 31 TCA 1997
Section 532 TCA 1997
Section 537 TCA 1997
Section 571 TCA 1997
Section 958 TCA 1997 (applies to years of assessment prior to 2012)

Yes

This appeal considers the identification of the person to be assessed and pursued for the collection of CGT arising on the forced sale of the Appellant’s shares in a French listed company, by a French bank with an Irish branch. Notwithstanding that a charge to capital gains tax applies to the debtor and not the creditor who enforces the security under sections 28(1), 29(2), 31 and 573(2) TCA 1997, the Appeal Commissioner determined that the amended assessments for CGT raised on the Appellant should be reduced to nil, owing to the forced sale falling within the provisions of section 571 TCA 1997. The responsibility to be assessed and to account for the “referable capital gains tax” moved from the Appellant to the bank.