In a recent tax appeals case, a taxpayer successfully challenged an assessment raised by Irish Revenue for capital gains tax arising from a disposal of shares in a Maltese tax resident company.
In upholding the taxpayer’s challenge, the Irish Tax Appeal Commission (the “TACâ€) once again demonstrated its ability to determine legal arguments that go beyond the provisions of the domestic Irish tax code (the “Codeâ€). As such, taxpayers should ensure that all available legal arguments are considered when challenging a tax assessment.
Background to the Determination
The taxpayer challenged the application of a provision of the Code which effectively disregards the existence of a non-Irish tax resident company to impose a tax charge directly on the shareholder of the non-resident company.