Tax Appeals Commission determination 140TACD2023 regarding Income Tax, 2023

• Administrative Decision Number: 140TACD2023
• Date: 28 August 2023
• Subject Matter: Income Tax
• Respondent: THE REVENUE COMMISSIONERS

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140TACD2023

Between:

Appellant

and

THE REVENUE COMMISSIONERS

Respondent

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Determination

_________________________________________________

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Contents

Introduction ......................................................................................................................... 3

Background ......................................................................................................................... 3

Legislation and Guidelines ................................................................................................. 7

Submissions ..................................................................................................................... 16

Appellant’s Submissions .................................................................................................. 16

Respondent’s Submissions ............................................................................................. 18

Material Facts .................................................................................................................... 21

Analysis ............................................................................................................................. 32

Determination .................................................................................................................... 38

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Introduction

1. This appeal comes before the Tax Appeals Commission (hereinafter the “Commission”)

against a Notice of Amended Assessment to Income Tax for the year 2017 raised by the

Revenue Commissioners (hereinafter the “Respondent”) on 15 December 2022.

2. The amount of tax in dispute is €9,023.48.

Background

3. Mr (hereinafter the “Appellant”) is a

(hereinafter the “Company”) which is a company registered in

Ireland whose shares are quoted on the .

4. On 31 March 2017 the Appellant exercised 9,000 share options which had been granted

to him by the Company. The Appellant exercised the share options by purchasing 9,000

Company shares at a price of 79.64 per share.

5. On the same date, 31 March 2017, immediately after exercising the share options, the

Appellant sold the 9,000 shares.

6. The Appellant and the Respondent are hereinafter referred to collectively as “the Parties”.

7. It is agreed between the Parties that the Appellant filed a Relevant Tax on a Share Option

(hereinafter “RTSO”) return with the Respondent and paid RTSO of €351,339 within 30

days after the date on which the share options were exercised. A copy of the RTSO return

filed by the Appellant has not been submitted as part of this appeal.

8. On 8 August 2018 the Appellant, through his tax agent, filed a Form 11 income tax return

with the Respondent which stated the amount chargeable in respect of the exercised share

options as follows:

Share Options exercised, released or assigned in 2017

Total chargeable amount

€675,653

Amount of RTSO paid

€351,339

9. On 28 August 2018 a Notice of Self-Assessment for 2017 was issued to the Appellant by

the Respondent the summary page of which stated as follows: