Conor Kennedy Law Library

Dealings with Revenue Kinsella v The Revenue Commissioners Legitimate Expectations Glencar Exploration Representation Identifiable person actually affected Expected to abide Keogh v Criminal Assets Bureau

Public Accounts Committee Comptroller & Auditor General Report Extending Tax Information Exchanges Mutual Assistance Information exchanged Automatic Spontaneous Capital gains risks Correlation with stamp duty information Substitution effect Stamp duty clawback Miscellaneous

Revenue Audit Findings Large Cases Division Residency of Companies Film investments Property based investments Property owned companies Liquidations S.806 & EU Treaty

General Audit Issues Pubs Irish Independent article Compliance issues in 50% of Dublin pubs New methodology Unfounded Allegations Licence agreements Finance Act 2007 S.4(5) VATA 1972 S.10(3) VATA 1972

Licence Agreements Example Build cost €275 per sq ft Apartment 1,000 sq ft Cost €275,000 Sale Price €475,000 Land Price €175,000 VAT liability €20,815 per apartment Unforeseen cost to the landowner

Constituents of a Business Definition ? Trade or Business American Leaf Korean Noddy Subsidiary Rights Relevance S.600 TCA 1997 S.97 CATA 2003 Reconstructions Trade Badges 12.5% CT Rate Substitution Effect

Finance Act 2007 CGT – Sale of business assets/ shares in family trading companies BES Improvements VAT – Waiver of exemption Offshore funds Revenue Powers

Appeal Commissioners Types of Case C2 Issues Record keeping Entitlement to allowances Large Case Tara Mines Ultra Vires

Appeal Commissioners Law Reform Commission 2004 Report Increase resources of Appeal Commissioners Increase jurisdiction Convention on Human Rights Consider application of penalties & other breaches Publish decisions

Internal Review What is it? Jurisdiction “Revenue’s handling of his or her tax or customs affairs or decisions made by a Revenue official …” Publication Discrimination Proportionality Appeal Commissioners Human Rights issues

Professional Negligence Duty of care Breach of duty Plaintiff suffered loss Damage caused by that breach

Professional Negligence Letters of engagement Hurlingham Estates v Wilde & Partners Letters of engagement Competency of the practitioner Sample Letter 1 – Tax Advisor Sample Letter 2 – Accountant Sample Letter 3 – Solicitor Information omitted

Agent Mistake Rowland v HM Revenue & Customs Reasonable Excuse Relied on agent Vicarious liability Employer main beneficiary Better position Implement safer practices Absorb losses Offers better protection to claimant

Revenue Penalties The ‘Code of Practice for Revenue Auditors’ 9.1 provides that: A tax return prepared and delivered on behalf of a taxpayer by some other person acting on his or her behalf is treated in all respects as if it had been made by the taxpayer. The taxpayer’s statutory responsibility to complete and file a correct return cannot be devolved to his or her agent. 9.5 provides … the taxpayer cannot devolve the responsibility of making the correct return to an agent. If all relevant matters have not been brought to the attention of the agent, the taxpayer has not taken due care.

Practical Realities Workload of Agents Complexities of statutory obligations Industry standard Cars serviced Diagnosing ailments Non delegable Disproportionate ECJ jurisprudence