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

Administrative Decision Number04TACD2023
Date19 October 2022
Subject MatterValue Added Tax
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 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
November/December 2006 not November/December 2017, as contended for by the
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.
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.

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