Tax Appeals Commission determination 162TACD2023 regarding Corporation Tax, 2023

Administrative Decision Number162TACD2023
Year2023
Date05 October 2023
Subject MatterCorporation Tax
RespondentREVENUE COMMISSIONERS
1
162TACD2023
Between
and
REVENUE COMMISSIONERS
Respondent
Determination
Introduction
1. This is an appeal to the Tax Appeals Commission (“the Commission”) by
(“the Appellant”) against a notice of amended assessment to corporation
tax dated 24 November 2020, raised by the Revenue Commissioners (“the Respondent”)
for the tax year 2017, arising from the refusal of research and development (“R&D”)
credits in the total amount of €42,647.
2. The appeal proceeded by way of an oral hearing on 11, 12 and 13 September 2023.
Background
3. The Appellant is engaged in the breeding of its CT1 form for 2017, it claimed R&D
credits for certain research projects carried out by it. These projects included the
following:
Project title
Description
Amount of credits
claimed
2
Project A
Nutritional trials
€25,365
Project B
Semen extenders
€7,555
Project C
Genotype
development
€9,727
4. The Respondent refused the claimed R&D credits for Projects A, B and C, on the grounds
that the projects did not satisfy the requirements of section 766 of the Taxes Consolidation
Act 1997 as amended (“TCA 1997”). It raised an amended notice of assessment to
corporation tax in the total amount of €133,929 on 24 November 2020. On 18 December
2020, the Appellant appealed against the amended notice of assessment.
5. The appeal proceeded by way of an oral hearing on 11, 12 and 13 September 2023. At
the commencement of the hearing, the Commissioner noted that while the notice of
appeal submitted by the Appellant stated that the quantum under appeal was the same
amount as stated on the amended notice of assessment (i.e. €133,929), it appeared on
the basis of the Appellant’s written submissions that the total amount at issue was the
sum of the credits claimed for Projects A, B and C, i.e. €42,647 (25365 + 7555 + 9727).
The solicitor for the Appellant confirmed that this was the case, and therefore the
Commissioner is satisfied that the total quantum is €42,647.
6. Following a request from the Commissioner during the hearing, the Appellant
subsequently confirmed to the Commission that the parties agreed that the quantum
under appeal in respect of Project A could be further broken down as follows1: Trial 1 -
€10,232; Trial 2 - €3,780; Trial 3 - €4,402; Trial 4 - €6,951.
Legislation and Guidelines
7. Section 766(1)(a) of the TCA 1997 states inter alia that
'research and development activities' means systematic, investigative or experimental
activities in a field of science or technology, being one or more of the following
1 Figures have been rounded to the nearest euro.

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