Tax Appeals Commission determination 51TACD2022 regarding Income Tax, 2022

• Administrative Decision Number: 51TACD2022
• Year: 2022
• Date: 07 March 2022
• Respondent: REVENUE COMMISSIONERS

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51TACD2022

Between

Appellant

-and-

REVENUE COMMISSIONERS

Respondent

Determination

Introduction

1. This is a determination dealing with the Appellant’s appeals of decisions of the

Revenue Commissioners (“the Respondent”)concerning two separate and disparate

issues.

2. The first issue is whether the Appellant is chargeable to income tax on rent earned in

respect of a property he owns at (“the

Property”), from which he says he was forced to flee in 2014 and to which he has not

been able to return in safety. The Appellant appeals assessments of an inspector for

the tax years 2014 –2017 (“the Tax Years in Question”) assessing liabilities to tax in

respect of this rental income.

3. The second issue is whether the Appellant can avail of an exemption from income tax

under s.192A of the Taxes Consolidation Act 1997 (“TCA 1997”) in relation to the

majority of a lump sum paid to him by his former employer,

(“the Employer”), pursuant to a written agreement dated 24 March

2014. The Appellant appeals the Respondent’s refusal to allow him avail of this

exemption.

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4.The Appellant filed his appeal with Tax Appeals Commission (“the Commission”) on

12 February 2019 and the hearing took place on 17 February 2022.

5.In opposing the appeals of the inspector’s assessments, the Respondent objected to

their acceptance by the Commission on the grounds that the Appellant failed to lodge

annual returns in the prescribed form and pay income tax due and owing before

appealing. This, it submitted, was contrary to the requirements of section 949AH TCA

1997. A finding on this objection forms part of this determination.

Background

6.The Appellant is an accountant and PAYE employee who now resides in ,

(“the Current Home”). Previously, he and his family lived in the Property. He

gave evidence that in 2014 they were forced to leave the Property permanently as a

consequence of a protracted campaign of intimidation by unnamed persons. This

included the burning of his car.

7.The Appellant gave evidence that leaving the Property was a last resort and before

doing so he sought the assistance of Council and the Garda Síochána. The

Appellant informed the Commissioner that both organisations advised him that the only

viable solution was to move to another area. As evidence of this advice, the Appellant

produced a letter of 17 February 2014 from Detective Sergeant of

Garda Station, which states:-

“With reference to the above, and following the previous correspondence from

D/Garda , I would have serious concerns for Mr. and

his family if he was to return to the area following previous incidents of

harassment and serious incidents that occurred in the of

. Please do not hesitate to contact me or D/Gda at this office

further if required.”

8.The Appellant gave evidence that, having been forced to move home, the only suitable

alternative accommodation he could locate was available at a rental rate that was more

expensive than the level of his mortgage repayments on the Property. Upon making

the move with his family to the Current Home, the Appellant commenced renting the

Propertyto tenants for a monthly sum. He gave evidence that he would have

considered a sale at this time, but that this was not viable because of the depressed

state of the housing market.

9.The Appellant did not file tax returns on time for the Years in Question disclosing the

income received from renting the Property. When the Respondent became aware that