Tax Appeals Commission determination 183TACD2024 regarding Income Tax, 2024

• Administrative Decision Number: 183TACD2024
• Year: 2024
• Date: 24 September 2024
• Respondent: THE REVENUE COMMISSIONERS

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AN COIMISIÚIN UM ACHOMHAIRC CHÁNACH

TAX APPEALS COMMISSION

183TACD2024

Between

Appellant

and

THE REVENUE COMMISSIONERS

Respondent

Determination

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Contents

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

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

Legislation and Guidelines .................................................................................................... 7

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

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

Respondent ..................................................................................................................... 12

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

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

Findings of Material Facts ................................................................................................... 36

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 years 2017 and 2019

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

2022

2. The amount of tax in dispute is €32,647.09.

Background

3. 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 Capi tal Commitment Agreeme nt

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,

he 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 Loan Notes were fully

repaid to the Appellant. 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 in respect of "Distributions

by way of a liquidation distribution" on foot of the liquidation of the Fund (hereinafter the

"liquidation distribution").