Tax Appeals Commission determination 44TACD2025 regarding VAT and PREM - Income Tax, PRSI, USC, 2025

• Administrative Decision Number: 44TACD2025
• Year: 2025
• Respondent: The Revenue Commissioners

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AN CO IMISIÚIN UM ACHOMHAIRC CHÁNACH

TAX APPEALS COMMISSION

Between

Appellant

and

The Revenue Commissioners

Respondent

Determination

44TACD2025

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Table of Contents

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

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

Legislation and Guideli nes......................................................................................................... 5

Evidence and Submissions........................................................................................................ 7

Appellant’s evidence .............................................................................................................. 7

Appellant’s submission s ......................................................................................................... 9

Respondent’s evidenc e ........................................................................................................ 11

Respondent’s sub missions .................................................................................................. 11

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

Analysis .................................................................................................................................... 14

The burden of proof .............................................................................................................. 14

Statutory interpretation ......................................................................................................... 15

Substantive issue ................................................................................................................. 21

Sections 112, 114 and 117 TCA 1997 ................................................................................. 21

Alternative argument – site based employees allowances.................................................. 27

The Directors’ Loan Accounts .............................................................................................. 29

Section 886 TC A 1997 ......................................................................................................... 30

Jurisdiction of an Appeal Commissioner .............................................................................. 31

Conclusion ............................................................................................................................ 32

Determination ........................................................................................................................... 32

Notification ............................................................................................................................... 33

Appeal ...................................................................................................................................... 33

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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 Income Tax (“IT”), Social Insurance Contributions (“PRSI”) and Universal Social Charge

(“USC”) Notices of Assessment of Amounts Due (collectively “the PREM assessments”)

dated 30 January 2024 and a Notice of Assessment of Tax Payable Value Added Tax

(“VAT”) dated 7 February 2024 (“the VAT assessment”), raised by the Revenue

Commissioners (“the Respondent”) for the year s 2019 and 2020 (“ the relevant periods”),

in the total revised amounts of €18,285.93.

2. On 9 February 2024 and 7 March 2024, the Appellant duly appealed to the Commission

by submitting its Notices of Appeal in relation to the PREM assessments and the VAT

assessment for the relevant periods (“ the appeal”). On 1 July 2024 and 10 July 2024, the

Appellant filed its Statements of Case and on 5 April 2024 and 19 April 2024, the

Respondent filed its Statements of Case in relation to the appeals. On 19 August 2024,

the Appellant filed its consolidated Outline of Arguments in relation to its appeals and on

19 August 2924, the Respondent also filed its Outline of Arguments in relation to the

appeals. The Commissioner has considered all of the documentation submitted by the

parties in this appeal.

3. The liabilities arose herein, in circumstances where the Respondent disallowed certain

travel and subsistence expenses claimed by the Appellant, as it was of the opinion that

the expenditure of the Directors was for travelling to and from work, in contrast to it being

incurred for the purposes of work. Subsequent to the assessments being raised the parties

entered into correspondence in relation to the liabilities of the Appellant. In

correspondence dated 11 September 2024, the Respondent set out the revised amounts

of liabilities as follows: 2019 PREM - €6,776.57; 2020 PREM - €5,825.79; and 2020 VAT

- €5,683.57.

4. The appeal hearing took place remotely on 16 September 2024. The Appellant was

represented by its tax agent and Respondent was represented by junior counsel. The

Director of the Appellant (“the Director of the Appellant”) was called as a witness to give

evidence on behalf of the Appellant and an employee of the Respondent was called to

give evidence on behalf of the Respondent.

5. At the hearing of the appeal, the Appellant confirmed that in relation to the VAT

assessment, the amount at issue was now in the amount of €613.00 only, as the Appellant