Case reference

Tax head

Legislation

Case stated requested

Matter under determination

116TACD2021

VAT

Schedule 1 VATCA 2010

Unknown

This appeal concerns a dispute as to whether the Appellant was an accountable person for VAT for the years 2010 to 2012. The Appellant submitted that it was engaged in the business of providing taxi and hackney services through a mixture of employee and self-employed drivers, and on the basis that those services were exempt from VAT the Appellant was not an accountable person for VAT. Revenue, as respondents submitted that the Appellant was not acting as principal, but rather an agent in the supply of taxi and hackney services by self-employed drivers, and was therefore providing a taxable supply of services. The Appeal Commissioner found the Appellant to be the principal supplying transport services to taxi and hackney customers, and the drivers concerned, whether employed or self-employed, were subcontractors operating on behalf of the Appellant. Given that those services are exempt from VAT, the Appellant was determined to have succeeded in its appeal.

117TACD2021

PAYE, PRSI, USC

Section 112 TCA 1997
Section 522 TCA 1997
Section 990 TCA 1997

No

This appeal considers the employment status of doctors, dentists etc. engaged by the Appellant, a sole trader trading under the style of a clinic providing medical services to patients. The Appellant is a businessman and not a qualified medical professional. Revenue raised a notice of estimate for PAYE, PRSI and USC of €93k for the years of assessment 2012–2015 on the basis that the medical professionals engaged by the Appellant were employees working under contracts of service. On analysis of the contracts in place between the Appellant and the medical professionals, the Appeal Commissioner determined that mutuality of obligation to be present in the contracts. The Appeal Commissioner conducted further analysis involving the tests of; control, integration, enterprise, opportunity to profit, bargaining power, substitution and categorisation of employment status. The Appeal Commissioner determined the contracts to be contracts of service rather than for service, and for the estimate for PAYE, PRSI and USC to stand. It was noted that section 112 is not conditional on whether a continuous period of employment can be established but on whether an “employment of profit” was held or exercised during the year of assessment.

118TCAD2021

Income tax

Section 531AA–531AH TCA 1997

Yes

The Appellant was requested to file domicile levy returns or pay a domicile levy for the tax years 2011–2013, and following failure to do so an assessment to the domicile levy was raised. The Appellant contended at appeal that his assets, which include an interest in a hotel partnership, did not meet the asset test for a ‘relevant individual’ within section 531AA TCA 1997. He argued that the partnership interest in a trade should be excluded when calculating the value of his Irish property for the purposes of the levy. The valuation of the hotel/ partnership share was also in dispute and the Appellant argued that the borrowings of the partnership should be deducted in arriving at the asset value of the partnership interest for the purposes of the levy. The Appeal Commissioner found that the exclusion for shares in a trading company provided for in the definition of Irish property could not be extended to include a partnership. The Appellant was also considered to be beneficially entitled in possession to his share of the legal title of the hotel building and land, and that under the statutory valuation rules the Appellant was determined to be prohibited from deducting any debts in estimating the value of his hotel interest. Accordingly, the assessments to the domicile levy for the tax years 2011–2013 were determined to stand.

120TACD2021

Income tax – artists’ exemption

Section 195 TCA 1997

Unknown

This appeal concerns a series of pieces the Appellant deems to be sculptures, for which the Appellant submitted a claim for the artists exemption for determination by Revenue. Revenue refused the application on the basis that the works appeared to be of “fabricated objects that serve primarily as a decorative function” and that “installations are not a category of work eligible for the scheme”. The Appeal Commissioner considered the meaning of the word sculpture and noted that art is generally not a functional item, but its function is to be decorative and to inspire viewers. It was also noted that the material for a sculpture is immaterial. The Appeal Commissioner determined that the works did satisfy the requisite tests, in particular paragraph 7(2)(e) of the guidelines drawn up under section 195 by an Comhairle Ealaíon and the Minister for Arts, Heritage and the Gaeltacht.

121TACD2021

Income tax

Section 472 TCA 1997
Section 472AB TCA 1997

Unknown

Following an audit of the practice in which the Appellant worked, she was informed that she was no longer being treated as self-employed and signed an employment contract with the practice. On deterioration and termination of her relationship with the practice, the Appellant informed Revenue about a lack of PRSI contributions and payslips from the practice. On completion of her Form 11 for the period concerned the Appellant was denied her claim for an employee tax credit. In finding that the Appellant was an employee of the practice and entitled to the employee tax credit for the period concerned, the Appeal Commissioner noted as unfortunate Revenue’s decision to rely on information provided by the practice, despite having previously found them to conduct practices concerning staff that needed to be rectified.

125TACD2021

Income tax

Section 865 TCA 1997

Yes

This appeal concerns Revenue’s disallowance of a claim for repayment of tax on the basis that it was made outside the four-year statutory limit. The Appellant argued that the overpayment of tax arose as a result of an error by his employer in relation to his salary income, and that the claim for repayment had been made within four years of the identification of the overpayment and that the statutory limitation period should run for when the damage became manifest. It was also argued that the refusal to process the repayment was unfair and unconstitutional. The Appeal Commissioner determined that the repayment claims were out of time on the basis that there was no discretion on the application of the statutory four-year limitation period.

126TACD2021

Income tax – artists’ exemption

Section 195 TCA 1997

Unknown

This appeal involves a claim for the artists’ exemption in relation to a non-fiction book. The Appeal Commissioner determined that the book was not an arts history work and found it to fail the non-fiction test as set out in the guidelines drawn up under that section by the Arts Council and the Minister for Culture, Heritage and the Gaeltacht, and accordingly the Appellant was determined not to be entitled to the exemption.