Tax Appeals Commission determination 107TACD2024 regarding Income Tax, 2024

• Administrative Decision Number: 107TACD2024
• Year: 2024
• Date: 28 June 2024
• Subject Matter: Income Tax
• Respondent: THE REVENUE COMMISSIONERS

1

AN COIMISIÚIN UM ACHOMHAIRC CHÁNACH

TAX APPEALS COMMISSION

107TACD2024

Between

Appellant

and

THE REVENUE COMMISSIONERS

Respondent

Determination

2

Contents

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

Background ........................................................................................................................... 3

Legislation and Guidelines .................................................................................................... 6

Submissions ....................................................................................................................... 11

Appellant ......................................................................................................................... 11

Respondent ..................................................................................................................... 11

Uncontested Material Facts................................................................................................. 12

Contested Material Facts .................................................................................................... 13

Findings of Material Facts ................................................................................................... 35

Analysis .............................................................................................................................. 38

Determination ..................................................................................................................... 40

Notification .......................................................................................................................... 40

Appeal ................................................................................................................................ 41

3

Introduction

1. This appeal comes before the Tax Appeals Commission (hereinafter the "Commission")

against Notices of Amended Assessment to income tax for the years 2017 and 2019

raised by the Revenue Commissioners (hereinafter the "Respondent") on 10 December

2022.

2. The Appellant lodged a Notice of Appeal with the Commission in relation to the Notices

of Amended Assessment on 20 December 2022.

3. The amount of tax in dispute is €54,369.69.

Background

4. Mr (hereinafter the "Appellant") is a taxpayer who is jointly assessed to

tax with his wife Mrs (hereinafter the “Appellant’s wife”). In 200 7 the

Appellant’s wife made an investment in the (hereinafter

the "Fund").

5. The Fund was incorporated in on and was not tax resident in

Ireland. The Fund was promoted by (hereinafter the "Bank") and was

incorporated for the purpose of raising funds for investment, in the main, in

investment properties.

6. The investment in the Fund took the form of a Capital Commitment Agreement which the

Appellant’s wife entered into for a total amount of €205,000. The Commissioner has not

been furnished with a copy of the Capital Commitment Agreement entered into by the

Appellant’s wife.

7. As a result of the Capital Commitment Agreement entered into by the Appellant’s wife,

she invested in and was issued 50 Participating Shares at a value of €1,000 per share,

representing a value of €50,000. The Commissioner has not been furnished with

documentary evidence of the share certificates issued to the Appellant as a result of

entering into the Capital Commitment Agreement.

8. In addition, as part of the Capital Commitment Agreement entered into by the Appellant’s

wife, she advanced a total of €155,000 to the Fund in the form of an interest free, non-

recourse, subordinated loan on foot of which Loan Notes were issued. The

Commissioner has not been furnished with documentary evidence in relation to the Loan

Notes issued to the Appellant.