Tax Appeals Commission determination 85TACD2024 regarding CT, DWT & PREM, 2024

• Administrative Decision Number: 85TACD2024
• Year: 2024
• Date: 14 May 2024
• Subject Matter: CT, DWT & PREM
• Respondent: The Revenue Commissioners

1

Between

Appellant

and

The Revenue Commissioners

Respondent

Determination

85TACD2024

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Table of Contents

Introduction ........................................................................................................................... 3

Background ........................................................................................................................... 4

Legislation and Guidelines .................................................................................................... 5

Submissions ......................................................................................................................... 8

Appellant’s evidence .......................................................................................................... 8

Appellant’s submissions .................................................................................................. 11

Respondent’s submissions .............................................................................................. 12

Material Facts ..................................................................................................................... 15

Analysis .............................................................................................................................. 16

Preliminary matters ............................................................................................................. 17

Admission of documentary evidence ............................................................................... 17

Time limit – the four year rule .......................................................................................... 20

Alternative assessments - Jurisdiction of an Appeals Commissioner ............................... 22

Grounds of Appeal .............................................................................................................. 25

Statutory Interpretation ........................................................................................................ 26

Substantive matter .............................................................................................................. 29

Section 112 TCA 1997 .................................................................................................... 32

DWT/Corporation Tax ...................................................................................................... 36

Determination ..................................................................................................................... 36

Notification .......................................................................................................................... 36

Appeal ................................................................................................................................ 37

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Introduction

1. This is an appeal to the Tax Appeals Commission (“the Commission”) pursuant to and in

accordance with the provisions of section 949I of the Taxes Consolidation Act 1997 (“the

TCA 1997”) brought on behalf of (“the Appellant”), in relation

to the following matters:

1.1. A Notice of Amended Assessment to Corporation Tax raised by the Revenue

Commissioners (“the Respondent”) on 27 December 2017, for the period ending

31 December 2012 (the “CT Assessment”), in the sum of €18,615;

1.2. A Notice of Assessment to Dividend Withholding Tax (“DWT”) raised by the

Respondent on 22 December 2017, for the period ending 31 December 2012

(the “DWT Assessment”), in the sum of €29,784, and

1.3. A Notice of Estimation of Amounts Due Employer PAYE/PRSI (“PREM”) raised

by the Respondent on 10 December 2019, in respect of the period ending 31

December 2012 (“the Notice of Estimation”), in the sum of €83,023.

2. The appeal proceeded to a hearing over three days, on 22 November 2023, 23 November

2023 and 19 December 2023. The Appellant was represented by junior counsel and the

Respondent was represented by two senior counsel. In addition to submissions from the

parties’ representatives, the Commissioner heard sworn oral testimony from the

Appellant’s witness (“the Appellant’s witness”).

3. The appeal proceeded in an unorthodox manner, whereby counsel for the Appellant

confirmed that there were no witnesses being called to give evidence on behalf of the

Appellant and that the appeal was proceeding on the basis of legal submissions only.

However, following the conclusion of legal submissions being made by counsel for the

Appellant, counsel for the Appellant stated that the Appellant’s witness would give

evidence. This announcement was subsequent to lengthy submissions being made by

counsel for the Appellant as to the admissibility of the documentary evidence submitted

in the appeal and there being no requirement for a witness to be called to give evidence

in relation to the Appellant’s appeal. The Commissioner sets out in greater detail

hereunder at “Preliminary matters”, the methodology adopted by the Appellant in relation

to its appeal.