Tax Appeals Commission determination 28TACD2022 regarding PREM & VAT, 2022

• Administrative Decision Number: 28TACD2022
• Date: 24 June 2015
• Subject Matter: PREM & VAT
• Respondent: THE REVENUE COMMISSIONERS

1

28TACD2022

Between/

Appellant

V

THE REVENUE COMMISSIONERS

Respondent

-and-

Ref:

Between/

Appellant

V

THE REVENUE COMMISSIONERS

Respondent

DETERMINATION OF PRELIMINARY ISSUES

1. Factual background & Outline of the issues

1.1. This Determination relates to certain preliminary issues advanced for the first

time at the hearing of the above two appeals. The Appellants in both appeals

2

are connected and because the issues of fact and law are inseparably linked it

was agreed that both appeals would be heard together.

1.2. Having heard oral submissions from Counsel for the parties at the

commencement of the appeal hearing, I directed that further written

submissions be furnished by the parties and indicated that, having regard to

the potential significance of my decision for other appeals, I would give a

written Determination on the points raised as preliminary issues.

1.3. (hereinafter “the First Appellant”) is the owner of certain

lands situate at , County .

Limited (hereinafter “the Second Appellant”) operates a camping site and

caravan park on the lands owned by the First Appellant. The First Appellant

and his wife are the owners of the Second Appellant and the First Appellant is

a director and secretary of the Second Appellant.

1.4. In or about 20 and 20 , the Second Appellant carried out substantial works

and capital improvements to the camping and caravan site and claimed a

substantial VAT input credit in respect of the cost of those works. Following

an audit of the First and Second Appellants in June 2013, the Respondent came

to the view that the Second Appellant had transferred value to the First

Appellant by way of the improvement expenditure incurred on the lands

owned by the First Appellant in his personal capacity. It is the Respondent’s

contention that, because there was no consideration given by the First

Appellant for this benefit, the expenditure giving rise to the benefit should be

treated as a distribution pursuant to section 130(3) of the Taxes Consolidation

Act 1997 as amended (hereinafter “TCA 1997”) or, alternatively, as a benefit

in kind pursuant to section 118 of TCA 1997.