Tax Appeals Commission determination 04TACD2023 regarding Value Added Tax, 2023

• Administrative Decision Number: 04TACD2023
• Year: 2023
• Date: 19 October 2022
• Subject Matter: Value Added Tax
• Respondent: The Revenue Commissioners

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Between

Appellant

and

The Revenue Commissioners

Respondent

Determination

Introduction

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 refusal by the

Revenue Commissioners (“the Respondent”) to refund Value Added Tax (“VAT”) in the

sum of €341,847.

2. In 2006, the Appellant issued a number of licences to third party companies for the

purposes of carrying out building works. However, subsequent events occurred, such that

works in accordance with the licences were not carried out. Consequently, credit notes

issued to the companies in December 2017 and a refund of VAT was sought by the

Appellant in his VAT return filed in January 2018 with the Respondent. The timeline in

relation to events is set out below in the Background section to this Determination.

3. The Appellant claims that said credit notes are the basis upon which he has an entitlement

to a refund of VAT paid, in the sum of €341,847. The Respondent has refused the refund

in accordance with the provisions of section 99(4) of the Value Added Tax Consolidation

Act 2010 (“VATCA 2010”) on the basis that the relevant taxable period is

04TACD2023

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November/December 2006 not November/December 2017, as contended for by the

Appellant.

4. A hearing of the appeal took place on Monday 26 September 2022 and both parties were

represented. The Appellant was not present at the hearing of the appeal, due to health

reasons. The Commissioner heard evidence and submissions on behalf of the Appellant

and submissions on behalf of the Respondent.

Background

5. In December 2006, the Appellant entered into three agreements over lands owned by him,

relating to the granting of licences to third party companies namely,

and . The licences were granted for the

purpose of allowing the companies carry out building works on the lands.

6. The licences were granted for a total consideration of €2,383,328, inclusive of VAT

(€1,969,693 exclusive of VAT, being in the sum of €413,635). This sum was invoiced to

the companies in December 2006 and VAT in the sum of €413,635 was accounted for by

the Appellant in his November/December 2006 VAT return, which was filed with the

Respondent in January 2007.

7. During the years 2007 to 2017, the Appellant and the companies remained in discussions

in relation to the lands. However, on 12 December 2017, the Appellant states that three

separate credit notes issued to the companies, as the building works agreed under the

licences could not carried out. The Appellant submits that this was due to a forced sale of

the lands in late 2016. The credit notes, all dated 12 December 2017, reflect the total

amount of VAT being in the sum of €341,847 and which amount matches the refund claim.

8. Thereafter, in January 2018, the Appellant filed his November/December 2017 VAT return

showing repayment in the amount of €341,847. The Appellant states that the

aforementioned licence agreements and subsequent credit notes are the basis for the VAT

refund amounting to the total sum of €341,847.

9. On 8 February 2018, the Respondent corresponded with the Appellant notifying him that

his VAT repayment claim for the period November 2017/December 2017, in the amount

of €341,847, has been selected for a verification check. The Respondent requested certain

documentation of the Appellant in this regard, which in turn, was provided by the Appellant

by way of correspondence dated 16 February 2018.

10. On 8 June 2018, the Respondent wrote to the Appellant notifying him that an audit will

commence in relation to the Appellant’s tax affairs for the years 2015 and 2016.