Tax Appeals Commission determination 117TACD2024 regarding Income Tax, 2024
Administrative Decision Number | 117TACD2024 |
Year | 2024 |
Date | 28 June 2024 |
Subject Matter | Income Tax |
Respondent | THE REVENUE COMMISSIONERS |
1
AN COIMISIÚIN UM ACHOMHAIRC CHÁNACH
TAX APPEALS COMMISSION
117TACD2024
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 .............................................................................................................................. 37
Determination ..................................................................................................................... 40
Notification .......................................................................................................................... 40
Appeal ................................................................................................................................ 40
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Introduction
1. This appeal comes before the Tax Appeals Commission (hereinafter the "Commission")
against Notices of Amended Assessment to income tax for the year 2017 raised by the
Revenue Commissioners (hereinafter the "Respondent") on 9 December 2022.
2. The amount of tax in dispute is €31,836.05.
Background
3. Mr (hereinafter the "Appellant") is a taxpayer who, in 2007, made an
investment in the (hereinafter the "Fund").
4. 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.
5. The Appellant's investment in the Fund took the form of a Capital Commitment Agreement
which he entered into for a total amount of €102,500. The Commissioner has not been
furnished with a copy of the Capital Commitment Agreement entered into by the
Appellant.
6. As a result of the Capital Commitment Agreement entered into by the Appellant, he
invested in and was issued 25 Participating Shares at a value of €1,000 per share,
representing a value of €25,000. 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.
7. In addition, as part of the Capital Commitment Agreement entered into by the Appellant,
the Appellant advanced a total of €77,500 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.
8. The Fund was wound up voluntarily by resolution on 31 July 2015 with
(hereinafter the "Liquidator") being appointed as Liquidator.
9. In 2017 the Appellant received distributions totalling €85,815.00 in respect of
"Distributions by way of a liquidation distribution" on foot of the liquidation of the Fund
(hereinafter the "liquidation distribution").
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