Tax Appeals Commission determination 60TACD2023 regarding Income Tax, 2023

Administrative Decision Number60TACD2023
Date24 February 2023
Subject MatterIncome 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 the Revenue
Commissioners (“the Respondent”) decision on 3 April 2017 to issue a Notice of Amended
Assessment for the year ending , in the sum of €72,728.35.
2. The liabilities arose as the Respondent assessed the Appellant as being the recipient of
farm payment entitlements, namely the Single Payment Scheme (hereinafter “SPS”), paid
by the Department of Agriculture, Food and Marine (hereinafter “DAFM”), and which has
not been included in the Appellant’s income tax returns for the year 2011.
3. The Appellant contends that the Respondent is out of time to raise the amended
assessment having regard to section 955 and 956 TCA 1997, which provides for a four
year time limit.
4. On 12 May 2017, the Appellant duly appealed to the Commission. The appeal proceeded
by way of a hearing on 27 January 2023. The Appellant was represented by
and the Respondent was represented by Junior Counsel.
5. The Appellant has a number of land interests. Prior to 1 June 2011, the Appellant famed
the land personally and was in receipt of the SPS payment from the DAFM relating to the
aforesaid lands.
6. On 31 May 2011, the Appellant incorporated his farming business under the company
name and a copy of the minutes of the
first meeting of the Directors of has been submitted by the Appellant. From 1 June
2011 onwards, commenced trading, it carried out all far ming activates and the
Appellant transferred all stock and machinery of the farming trade to .
7. On 8 June 2011, the Appellant and his wife entered into a lease agreement with for
a period of 4 years and 7 months, in relation to 35 acres of land that they owned jointly. In
addition, the Appellant entered into a lease agreement with for 4 years and 7
months, in relation to 20 acres of land of which he had a life interest. On 1 October 2012,
entered into a lease agreement with for a period of 3
years, for 303 acres of land at .
8. On 29 June 2011, the herd number was transferred to and correspondence from the
DAFM was submitted in support of the transfer. However, the SPS entitlements were not
transferred to and remained in the Appellant’s name until 2012, as all payment
applications must be made to the DAFM prior to 15 May and amendments made up to 31
May, in any given year.
9. In October 2011, the 2011 SPS payment from the DAFM in the sum of €140,656 was paid
to the bank account of the Appellant, then subsequently transferred to the bank account
of . The Appellant did not include the SPS payment in his income tax return for 2011.
Rather, the SPS payment was included in Corporation Tax return for the year
ended 31 May 2012. In May 2012, the Appellant applied to the DAFM to transfer the SPS
entitlements to .
10. On 28 May 2014, a Notification of Revenue Audit issued to the Appellant. The
correspondence informed the Appellant that the scope of the audit was all relevant taxes
and duties and that the period of audit was 1 January 2011 to . Between
the date of notification of audit and 31 January 2017, the parties liaised in relation to the
tax treatment of the SPS payment. Subsequently, on 3 April 2017, in accordance with
section 955 TCA 1997, the Respondent issued a Notice of Amended Assessment, the
subject matter of this appeal.

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