Tax Appeals Commission determination 118TACD2021 regarding Income Tax, 2021

Administrative Decision Number118TACD2021
Year2021
Date09 July 2021
Subject MatterIncome Tax
RespondentTHE REVENUE COMMISSIONERS
1
118TACD2021
BETWEEN/
Appellant
V
THE REVENUE COMMISSIONERS
Respondent
DETERMINATION
Introduction
1. This is an appeal against assessments to the domicile levy under section 531AH Taxes
Consolidation Act 1997 (TCA 97) made on the Appellant in respect of the tax years
2011, 2012 and 2013 inclusive, on 10th August 2015. The Appellant appealed the
assessments made by letter dated 14th August 2015.
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2. The Appellant did not file domicile levy returns or pay domicile levy in respect of any
of the tax years in issue - 2011, 2012 and 2013 inclusive, having been requested to do
so by notice in writing dated 19th June 2015 (section 531AF(1A) TCA 1997).
3. The appeal was heard by remote oral hearing over 5 days on the following dates:
Day 1: April 2021
Day 2 April 2021
Day 3: May 2021
Day 4: May 2021
Day 5: June 2021
4. Prior to the hearing, the Appellant was challenging three issues relating to the
assessments.
These were:
i) the Appellant’s Agent contended that the Appellant, now deceased, had
world-wide income for each relevant tax year of not more than €1 million
worldwide, as income under section 531AA(1) TCA should be reduced to
take account of capital allowances;
ii) the Appellant asserted that his share of the profits in the
Hotel Partnership was not Irish property as defined and therefore the
Appellant did not meet the asset test (section 531AA(1) TCA);
iii) The Appellant did not meet the asset test (section 531AA(1) TCA) as his Irish
assets were less than €5M;
5. Following discussions between the parties, issue i) was dropped by the Appellant and
the only issues for decision put before me at the hearing were ii) and iii) above.
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Page
CONTENTS
1-2
Introduction
3
Contents
3-4
Background
5
Legislation
5-6
Irish Case Law relied upon
6
UK Case Law relied upon
6
Other Authorities relied upon
6-7
Witness Testimony
7-9
Valuation Experts’ methodologies
9
Material Findings of Fact
Submissions
10-17
Appellant
17-24
Respondent
24-41
Analysis & Conclusions
40-41
Determination
42-45
Appendices
Background
6. The Appellant is and always has been Irish tax resident and Irish tax domiciled.
7. The business and the hotel, known in 2011-2013 as the Hotel
Partnership, had in earlier years been acquired and developed by the Appellant in his
sole name. The Appellant expanded the hotel in 2006, spending €20million on the
property, financed by bank borrowings.
8. On 1 December 2006, the Appellant entered into the Hotel Partnership
with his two sons, at which time he gifted 2.5% of his interest of the business and hotel
to each son.

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