Tax Appeals Commission determination 97TACD2022 regarding CAT, 2022

Administrative Decision Number97TACD2022
Date15 June 2022
Subject MatterCAT
RespondentThe Revenue Commissioners
The Revenue Commissioners
1. This is an appeal to the Tax Appeals Commission (“the Commission”) pursuant to and in
accordance with the provisions of section 949I of the Taxes Consolidation Act 1997 (“the
TCA 1997”) brought on behalf of (“the Appellant”) against a Notice of
Amended Assessment to Capital Acquisitions Tax (“CAT”) raised by the Revenue
Commissioners (“the Respondent”) in relation to the period 1 September 2014 to 31
August 2015 in the amount of €314,351.
2. On 8 June 2015, the Appellant received a gift of a residential property at
(“the property”) with a market value of
from (“the Disponers”). The Appellant is the adult
son of the Disponers.
3. This appeal relates to the question of the availability of an exemption in accordance with
section 86 of the Capital Acquisitions Tax Consolidation Act 2003 (“CATCA 2003”)
commonly referred to as ‘”dwelling-house exemption”.
4. The matters at issue in this appeal are twofold and relate to whether (i) the Appellant has
met the requirements of section 86(3)(a) and (c) CATCA 2003, in relation to continuous
occupation of the dwelling house as the only or main residence throughout the period of 3
years immediately preceding the date of the gift and continued occupation of the dwelling
house as the only or main residence throughout the relevant period being, 6 years after
the date of the gift and (ii) the Appellant was, at the date of the gift of the dwelling-house,
beneficially entitled to any other dwelling-house or to any interest in any other dwelling-
house in accordance with section 86(3)(b) CATCA 2003.
5. The Appellant’s Tax Agent filed an IT38 form claiming a dwelling house exemption in
respect of the gift of the property. The Respondent, in disallowing the claim for an
exemption, raised a Notice of Amended Assessment to CAT on 11 August 2017, in the
sum of €314,351, in respect of the period 1 September 2014 to 31 August 2015.
6. On 8 June 2015, the Appellant was gifted the property by the disponers and the Appellant
claimed a dwelling house exemption pursuant to section 86(3) CATCA 2003. A Deed of
Conveyance, Declaration of Solvency, Property Valuation and Land Registry
Documentation have been submitted in relation to the transfer of the property to the
Appellant by the disponers.
7. The Appellant maintains that he continuously occupied the property as his only and main
residence in the 3 year period ending 8 June 2015, and whilst he was not resident in
Ireland for tax purposes, from first occupation, he returned frequently to the property and
did not maintain any other residence during this period. Various documentation inter alia
utility bills, domestic alarm agreements, television licence, sample travel documents,
building works expenditure documents, planning application, school fees and motor tax
document have been submitted by the Appellant in support of his appeal, in addition to a
schedule detailing the Appellant’s presence in Ireland, for the period
8. Further, the Appellant maintains that he does not hold a beneficial interest in any other
property, specifically the apartment at which
was gifted by the Appellant to his daughter on and currently held in
trust by the disponers (“the trustees”) for his daughter. He maintains that the rental income
was returned on his income tax return, as the beneficiary is a minor. However, the
Appellant maintains that he has neither access nor entitlement to the rental income, which
is paid to a bank account in his mother’s name, for the benefit of his daughter and her

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