Tax Appeals Commission determination 60TACD2023 regarding Income Tax, 2023

• Administrative Decision Number: 60TACD2023
• Date: 24 February 2023
• Subject Matter: Income Tax
• Respondent: The Revenue Commissioners

1

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 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.

60TACD2023

2

Background

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.