Tax Appeals Commission determination 181TACD2024 regarding Income Tax & CGT, 2024

Administrative Decision Number181TACD2024
Year2024
Date23 September 2024
RespondentTHE REVENUE COMMISSIONERS
1
AN COIMISIÚIN UM ACHOMHAIRC CHÁNACH
TAX APPEALS COMMISSION
181TACD2024
Between
Appellant
and
THE REVENUE COMMISSIONERS
Respondent
Determination
2
Contents
Introduction ........................................................................................................................... 3
Background ........................................................................................................................... 3
Legislation and Guidelines .................................................................................................... 7
Submissions ....................................................................................................................... 12
Appellant ......................................................................................................................... 12
Respondent ..................................................................................................................... 12
Uncontested Material Facts................................................................................................. 13
Contested Material Facts .................................................................................................... 14
Findings of Material Facts ................................................................................................... 36
Analysis .............................................................................................................................. 38
Determination ..................................................................................................................... 41
Notification .......................................................................................................................... 41
Appeal ................................................................................................................................ 42
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 9 December
2022. In addition, this is an appeal against a Notices of Assessment to Capital Gains Tax
(hereinafter “CGT”) for the years 2017 and 2019 raised by the Respondent on 8
December 2022.
2. The amount of tax in dispute is 23,689.28.
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 Capital Commitment Agreement
which she 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, she
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,
she 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.

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