Tax Appeals Commission determination 17TACD2021 regarding Corporation Tax - Sporting Tax Exemption, 2021

• Administrative Decision Number: 17TACD2021
• Year: 2021
• Date: 24 October 2020
• Subject Matter: Corporation Tax - Sporting Tax Exemption
• Appellant: REVENUE COMMISSIONERS
• Respondent: Appellant

17TACD2021

BETWEEN

REDACTED

Appellant

AND

REVENUE COMMISSIONERS

Respondent

DETERMINATION

Introduction

1. This is an appeal against a decision made by the Respondent in refusing an application

for sporting tax exemption on behalf of the Appellant under s.235 Taxes Consolidated

Act (TCA) 1997.

2. By way of letters dated 27 May 2013 and 15 April 2014, the Respondent determined

that the Appellant was not established for the sole purpose of promoting an athletic

or amateur game or sport and whose income, as shown to the satisfaction of the

Respondent, is income which has been or will be applied for the sole purpose of

promoting an athletic or amateur game or sport.

3. The Appellant duly appealed to the Revenue Commissioners prior to the

commencement of the Tax Appeals Commission (TAC) which came into effect on 21

March 2016. The appeal was transferred as part of a legacy group of cases to the TAC

in January 2017.

4. This Appeal was determined by an oral hearing, which took place at the Tax Appeals

Commission on 30 September 2020.

Background

5. The Appellant provides facilities for horse racing at its premises in REDACTED.

6. The matter of the exemption to tax had been the subject of extensive correspondence

between the parties in advance of the formal determination by the Respondent of the

company’s application for exemption.

2

Agreed Facts

7. Horse Racing has been carried out in REDACTED since REDACTED.

8. REDACTED is a company limited by guarantee. It was incorporated on REDACTED,

when it assumed the running of the racing from a local committee.

9. The property (at REDACTED) is partly owned and partly leased on a long-term lease.

It consists of the usual infrastructure typical of any racecourse: racetrack, viewing

stands, parade ring, restaurants, bars etc.

10. “REDACTED” as they are known throughout the country, is a premier horse racing

event on the national calendar. Currently horse racing occurs REDACTED at

REDACTED – in REDACTED. The REDACTED meeting attracts a huge attendance, with

REDACTED on a single day. The REDACTED meeting extends over REDACTED

continuous days.

11. Horse racing at REDACTED consists of the usual “flat” and “national hunt” type horse

races. “Flat” racing is run over short distances of between 6 furlongs and a mile and

does not involve any fences. “National Hunt” is racing over fences for distances

between 2 and 3.5 miles.

12. The income of the company includes receipts received from the race meetings such

as,

- Admission tickets

- Media Rights

- Concessionaire receipts (food and beverage)

- Race card sales

- Race sponsorship by local businesses and others.

Legislation

13. The sporting exemption provision is contained in s.235 TCA 1997 and provides:

s. 235 Bodies established for promotion of athletic or amateur games or sports

(1)In this section, “approved body of persons” means –

(a)any body of persons established for and existing for the sole purpose of

promoting athletic or amateur games or sports, and

(b)(i)any body of persons that, as respects the year 1983 -84 or any earlier

year of assessment, was granted exemption from income tax under section