Tax Appeals Commission determination 06TACD2023 regarding Value-added Tax, 2023

Administrative Decision Number06TACD2023
Subject MatterValue-added Tax
A. Introduction
1. This matter comes before the Tax Appeals Commission by way of an appeal against
VAT assessments issued pursuant to section 23 in respect of the periods from
July/August 20 to November/December 20 inclusive, January/February 20 to
November/December 20 inclusive and January/February 20 to
September/October 20 inclusive. The amount of tax under appeal was €103,809
at the time the appeal was made, but this was subsequently reduced as a result of
correspondence exchanged between the parties during the course of the appeal.
2. The matter was heard on two occasions by Appeal Commissioner Ronan Kelly and
was adjourned on both occasions to allow further information and submissions to be
furnished by the parties. Following the retirement of Commissioner Kelly, I reheard
the appeal pursuant to the provisions of section 28 of the Finance (Tax Appeals) Act
B. Factual Background
3. The Appellant was incorporated in August of 20 and carries on the business of
operating a gambling club for its members and guests. The Appellant took over the
business of an existing card club operated by a company named Limited
when the latter company . The Appellant offers blackjack,
roulette, cash games and poker tournaments to its members.
4. The Appellant submitted VAT returns to the Respondent subject to an expression of
doubt, made by letter dated the 29th of March 20 , in relation to the Appellant’s
liability to VAT on its surpluses arising from club members betting with the Appellant.
That liability forms the core issue in this appeal.
C. Grounds of Appeal
5. The grounds of appeal originally advanced by the Appellant were that:-
(a) the VAT assessments were invalid as, inter alia, gambling does not constitute the
provision of goods and/or services, and
(b) the assessments are excessive and not in accordance with the facts.
6. The original grounds of appeal were then expanded upon and clarified in written
submissions made on behalf of the Appellant dated the 1st of November 2013. Those
submissions indicated that there were 8 issues which required to be determined,
(a) Did the State have the power to bring betting” within the charge to VAT following
the transposition of the E.U. Sixth Council Directive 77/388/EEC of the 17th of May
1977, and in particular Article 13.B(f) thereof (now Article 135(1)(i) of Directive
2006/112/EC) into Irish law?
(b) Was it sufficient to remove the word betting” from the list of VAT-exempt
activities detailed in section 1(xvii) the First Schedule to the Value Added Tax Act
1972, by the enactment of section 82 of the Finance Act 1980, to bring the profits
from betting within the charge to VAT?
(c) Does the placement of a bet or wager by a club member with the appellant
constitute in whole or in part consideration for the supply of a good or a service
provided by the Appellant within the meaning of section 2 of the Value Added Tax
Act 1972, or section 3 of the Value Added Tax Consolidation Act 2010?
(d) Did the Appellant receive any consideration from club members for the facility
provided by the Appellant by which members place bets with the Appellant within
the meaning of section 2 of the Value Added Tax Act 1972, or section 3 of the Value
Added Tax Consolidation Act 2010?
(e) Did the gambling activities between the club members and the Appellant come
within the provisions of section 2 of the Value Added Tax Act 1972, or section 3 of
the Value Added Tax Consolidation Act 2010, which require goods and services to
be supplied “for consideration”?
(f) If the Appellant is found to be in receipt of consideration received from the supply
of goods or services arising from bets placed with the Appellant by club members,
how is the consideration which is liable to VAT to be determined?

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