Tax Appeals Commission determination 180TACD2020 regarding Income Tax, 2020

Administrative Decision Number180TACD2020
Date21 September 2020
Subject MatterIncome Tax
Ref: 180TACD2020
1. This is an appeal against assessments, under Chapter 5 of Part 41A Taxes
Consolidation Act 1997, as amended (‘TCA 1997’), to income tax for the tax years
2015 and 2016. This appeal also relates to the operation of section 997A TCA 1997.
2. This Appeal was heard by remote hearing (both Appellant and Respondent attended
by remote computer link) held at the offices of the Tax Appeals Commission on 26
August 2020.
3. The Appellant was jointly assessed with his spouse in the 2015 and 2016 tax years.
4. During 2015 and 2016 the Appellant and his spouse were directors and 100%
shareholders in REDACTED (‘the Company’).
5. The Company went into creditors’ voluntary liquidation on REDACTED 2017.
REDACTED was appointed as the liquidator (‘the liquidator’).
6. PAYE-related taxes, deducted from salaries paid, in the amount of €17,632 were not
remitted by the Company to the Respondent and were outstanding at the date of
liquidation. The Liquidator did not have funds available to pay this and the amount
remained outstanding. These outstanding PAYE-related taxes were related to total
directors emoluments paid in the amounts of €63,648 for 2015 and €52,166 for
7. Initially, on 20 November 2018, the Respondent, denied the Appellant the PAYE credit
for his portion (ignoring his wife’s portion) of the unpaid PAYE and raised amended
income tax assessments, pursuant to the provisions of Chapter 5 Part 41A TCA1997
and S.997A TCA1997, on the Appellant in the sum of €4,137 in respect of the 2015
tax year, and in the sum of €1,825 in respect of the 2016 tax year.
8. On 22 November 2018, the Appellant notified the Respondent that he wished to
appeal the initial assessments on the grounds that they were incorrect. The Appellant
submitted that “following amendments to the P35’s for 2015 and 2016, THE
COMPANY has no liability to Revenue for PAYE/PRSI/USC for these years and
therefore S.997A does not apply”.
9. On 22 November 2018, REDACTED (“Agent”) who acted for both the Appellant and
the Company amended, using the ROS system, the P60’s and P35’s thereby reducing
the total director’s emoluments to €30,922 for 2015 and €31,268 for 2016. Both the
Appellant and the Company remained on the list associated with the agent’s TAIN
(Tax Advisor Identification Number) up to 28 November 2018 despite the fact that
the Liquidator had taken control of the Company on REDACTED 2017.
10. The Appellant submitted copies of the “Acknowledgement for P35 Details” (issued by
ROS System), dated 22 November 2018 showing a decrease in the PAYE/USC
amounts due by the Company of €14,279 for 2015 and €7,805 for 2016. This
reduction in liability, if it were accepted by Revenue, would have the effect that no
PAYE/USC relating to director’s emoluments would have been unpaid at the end of
2015 and 2016. In turn this would avoid section 997A being invoked by Revenue and
would allow substantially nullify the amended assessments under appeal. As we will
see later, the Respondent does not accept that the issue of the
receipt/acknowledgement by the ROS system fairly states the correct position.

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT