Tax Appeals Commission determination 136TACD2022 regarding CAT, 2022

Administrative Decision Number136TACD2022
Date27 July 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 Gains Tax dated 1 October 2018, issued by the Revenue
Commissioners (“the Respondent”) in relation to the period 1 September 2015 to 31
August 2016 in the sum of €692,010.
2. On 30 September 2015, the Appellant received a gift of a residential property at
with a market value of € from
(“the Disponer”). The Appellant is the adult son of the Disponer and he took
an absolute interest in the property.
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”. The matter at issue in this appeal
relates to whether the Appellant was, at the date of the gift of the
property, 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.
4. The Appellant 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 1 October 2018.
5. On 30 October 2018, the Appellant duly appealed to the Commission. On 4 July 2022, a
hearing of the appeal took place and the Commissioner heard submissions from Counsel
on behalf of the Appellant and the Respondent. The Commissioner appreciated the
extensive preparation by both parties and the bundle of documents and authorities
6. On 30 September 2015, the Appellant was gifted the property from the
Disponer and the Appellant claimed dwelling house exemption pursuant to section 86(3)
CATCA 2003. The Appellant had taken up residence in the property in
January 2012.
7. Previously, the Appellant had purchased a dwelling on 1 July 2004, at
”). On 28
March 2013, the Appellant disposed of the property to (“the
Company”) for the sum of €165,000, the market value of the property. The Company paid
the sum of €165,000 to the Appellant and the Company received the property
by way of consideration. The Company is a property holding/rental company involved in
the letting of residential and commercial properties. The Appellant is a 33% shareholder
in the Company, with his two brothers also being shareholders. The Appellant is not a
Director of the Company.
8. The Appellant maintains that he has no beneficial interest in the property and
therefore satisfies the provisions of section 86(3)(b) CATCA 2003, such that a dwelling
house exemption should have been afforded to him by the Respondent. He argues that
section 43 CATCA 2003 has no application to the circumstances of his appeal and any
beneficial interest he had in the property, ceased on the sale of the property to
the Company for market value. The Appellant asserts that the fundamental principles of
company Law support this approach.
9. The Respondent argues that while the general law takes a certain approach to the assets
of estates and companies, the CAT rules, on the other hand, include extensive look
through provisions with respect to companies. These rules contained in Section 43 CATCA

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