Tax Appeals

Table of Contents

Making an Appeal

An appeal is made by giving written notice of acceptance of the appeal to the Appeal Commissioner. Certain details must be furnished. A copy of the notification by Revenue, particulars of the parties, tax reference numbers, and grounds of appeal.

Conditions of appeal, which may include submission of tax returns, must be complied with. The Appeal Commissioners decide whether or not to accept the appeal based on facts and information furnished. They may reverse their decision when different facts and information come to hand.

The Appeal Commissioners are to send a copy of each notice of appeal to the Revenue after they receive a valid notice of appeal. Revenue may send a written notice of objection, giving reason for objections in relation to acceptance of an invalid or late appeal. They must do so within 30 days. They must notify objection to the appeal.

The legislation amends numerous pieces of tax legislation to incorporate the new system of appeals into the various Taxes Act. The legislation provides for the right of direct appeal to the Appeal Commissioners and not to Revenue as under the previous system. Provides express rights of appeal through various pieces of legislation and rectifies certain anomalies and inconsistencies. Provides a standardised period of appeal.

Acceptance of Appeal

The Appeal Commissioners must accept an appeal at the end of the 30 day period where notification of objection to the acceptance of the appeal, where they have no reason to believe that the appeal is not a valid appeal. This is not binding where the Appeal Commissioners form the review at a later stage that the appeal is not a valid appeal.

Appeal Commissioners may refuse to accept an appeal that they consider not to be valid or to be without substance or foundation, even if they have accepted the appeal. Where the Appeal Commissioners refuse an appeal, they must state their reason for the refusal.

A late appeal may be accepted within 12 months after the date allowed. There must be sufficient grounds, such as illness, absence, or other reasonable cause, justifying the failure to make the appeal within the requisite time period, generally 30 days.

The Appeal Commissioners may make the appropriate inquiries they consider necessary. They may hold a preliminary hearing in relation to accepting a late appeal or otherwise.

Further TAC Requirements

Certain information must be provided by the parties in order to facilitate the adjudication of the matter under appeal. The Appeal Commissioners may direct the party to provide a statement of case after the appeal is accepted. Legislation sets out non-exhaustively information that a party may be directed to provide.

This includes statutory provisions, case law, outline of relevant facts. A party may be directed to indicate whether there is scope for settling the matter by agreement, whether the matter could be heard without holding a hearing, or whether a public or private hearing is sought.

A person who sent the statement of a case to the Appeal Commissioners must also send it to the other parties.

The Appeal Commissioners may direct one or both parties to provide additional information to a statement of case and to send a copy of the information to the other party. The additional information is an outline of the argument that the party intends to make at the hearing. A direction may impose a 40-day time limit immediately prior to the date of hearing for the provision of information.

Preliminary Hearing

There is provision for holding preliminary hearings. The purpose is generally to progress the matters to the stage of full hearing. However, the Appeal Commissioners may determine the matter under appeal at a preliminary hearing.

They may direct the parties to attend a preliminary hearing. The primary purpose of the hearing is to review how the appeal proceedings are progressing and secure expeditious and fair completion of the proceedings.

Pre-Hearing

The Appeal Commissioners may adjudicate the matter of the appeal on the basis of written and oral submissions without the need to hold a hearing. It may where the parties agree, dispense with the holding of a hearing, to adjudicate on a matter under appeal and instead deal with the matter on the basis of written submissions or discussions with the parties. Commissioners must notify the parties of their proposal to adjudicate on the matter without a hearing.

The Commissioners must hold a hearing where they receive a written request from a party to this effect within 21 days after notification of the Commissioner’s proposal to dispense with holding a hearing.

An appeal is withdrawn when the parties come to an agreement before the hearing is held. The agreement must be in writing. If not in writing, when made, it must be confirmed in writing between the parties. A period of 21 days is allowed for reflection on the agreement and possible repudiation.

Revenue is to give effect to an agreement and to notify the Appeal Commissioners that the agreement is reached.

The Commissioners may stay proceedings for various reasons. In particular, this may be to allow parties to prepare for a hearing or allow a determination to be made in a separate appeal that raises common issues.

Hearing

The Appeal Commissioners are to arrange hearings and notify parties of the location and time of the hearing. They may adjourn scheduled hearings.

The hearings may be held in private in certain circumstances. This is where there are overriding issues of public order, national security, sensitive information, and protection of a person’s right to respect for his or her private or family life or the interest of justice so required. An appellant may request a private hearing within 14 days of notification.

The Appeal Commissioners may exclude certain persons from the hearing, including disruptive persons and those who may hinder persons under 18 from giving evidence. A witness may be excluded from the hearing until he is required to give evidence.

An appellant is required to attend a hearing unless he is excused from attendance by the Appeal Commissioner. An appeal is withdrawn where the appellant or his representatives failed to attend unless the Commissioners are satisfied the reason for non-attendance was due to absence, illness or other reasonable cause. The application is made as soon as possible after the reasons for non-attendance have ceased.

The Appeals Commissioner must hear a barrister, solicitor, accounting or tax practitioner representing the party. They may hear another person notwithstanding that he does not fall into this category.

Evidence

The Commissioners have the discretion to allow oral or written evidence. They may adopt a more informal approach in relation to taking of evidence. They may exclude certain evidence, for example, which is not given in a timely manner or in the manner requested.

Giving false evidence has the same consequences as perjury and civil proceedings in court. Witnesses may be summonsed and required to give evidence. Person summonsed must be given at least 21 days notice of the hearing.

They must be given notice of entitlement to object to the summons or have its terms varied. Failure to comply with the summons is subject to a penalty.

Determination

The Appeal Commissioners may make all determinations at the conclusion of the hearing but this must be followed by a written determination.

The Appeal Commissioners, when adjudicating and determining appeal, must take account of the same matters that the Revenue is required to take account of in relation to the matter under appeal.

Appeal Commissioners have the discretion to determine the appeal to the best of their judgments in circumstances where persons fail to comply with directions to provide information and documentation. They may choose to dismiss the appeal.

The Appeal Commissioners are to make a determination as soon as possible practicable after they have completed their adjudication. An odd number of Appeal Commissioners must adjudicate on the matter. If there are three or more commissioners, the adjudication is by majority.

Appeal Commissioners must notify their determination within 21 days after the determination is made and provide information in relation to an appeal against that determination.

Determination Issues

The Appeal Commissioners may determine that the original assessment is to be reduced, increased or unchanged. Commissioners may confine their determination to increasing or reducing the amount to be assessed as chargeable while leaving the amount taxed or charged as unstated.

Where the Appeal Commissioners determine the Revenue was outside the four-year time limit for making an assessment, it may render the assessment void so that the assessment is deemed not to have been made.

Revenue must give effect to the Appeal Commissioner’s determination unless the matter is appealed to the High Court on a point of law. Revenue must calculate the tax to be charged by an assessment, where the Appeal Commissioners determine the amount chargeable only.

An assessment is to stand or should stand as amended, as a result of an Appeal Commissioner’s determination, is final and conclusive unless appealed to the High Court on a point of law.

There are provisions for appeals of determination involving matters that are common to more than one appeal. The Appeal Commissioners may take account of a previous determination in determining a subsequent appeal that raises common issues and may determine the subsequent appeal without holding a hearing as if they consider it appropriate to do so.

In such event, the Appeal Commissioners must give the parties a copy of the previous determination, suitably redacted if necessary and allow them the opportunity if they do not agree with the proposal, to deal with it on the basis of common issues to persuade the Appeal Commissioners if it would not be appropriate to take a previous determination into account in the particular appeal.

There is a penalty of up to €5000 on a person who fails to comply with summons to attend a hearing or refuses to swear an oath or answer questions. There is an exception in respect of an employee or an agent, subject to a duty of confidentiality.

The Appeal Commissioner may dismiss an appeal where the appellant has failed to comply with the directions to provide information. Before dismissing an appeal, the Appeal Commissioners must give the appellant notice of the proposed dismissal and reasons and consider any objections.

Reports

The Appeal Commissioners are to publish a report of the determination on the Internet within 90 days after notification to the party. This is to include a copy of the determination, the date, whether it was appealed, and other information the Appeal Commissioners considered relevant. The requirement to publish is relaxed in certain cases.

The Appeal Commissioners are, insofar as possible, to publish a report in a way that conceals the identity of the person whose affairs were treated as confidential in the conduct of an appeal or where the appeal was heard in private.

Appeal to High Court

Parties may appeal to the High Court on a point of law. Grants are restricted to cases where the parties believe the Commissioners erred in relation to a matter or point of law and not in relation to fact. Parties are required to send written notice to the Appeal Commissioners requiring them to prepare a case stated.

The notice requesting a case stated it is to state how the parties consider the determination to have erred in law. The particular point of law must be identified must be sent to the Appeal Commissioners within 21 days after the parties have received the determination. It is to be sent by the party requesting the case stated.

The case stated must set out the facts as found by the Appeal Commissioners, their determinations and the reasons for the determination and the point of law on which the High Court is to give its opinion. The Appeal Commissioners draft the case stated. Parties are given an opportunity to make representations in relation to the draft. There is a three-month time limit from the date requesting the case stated until the completion of the signed case stated.

A party who has requested a case stated must send the completed and signed case stated to the High Court within 14 days commencing on the date on which the case stated was sent to the party by the Appeal Commissioner.

The High Court is to hear and determine the question of law in the case stated. It may reverse, affirm or amend the Appeal Commissioner’s determination. It may remit the matter to the Appeal Commissioners with its opinion on the determination and make any other order it considers appropriate, including an order as to costs.

Finance Act 2019 Changes

Finance Act 2019 makes several amendments in relation to the tax appeal procedures contained in Part 40A of the Taxes Consolidation Act (TCA) 1997 to facilitate improvements to the tax appeals process.

It to requires the Appeal Commissioners to notify parties directed to attend a case management conference of the time and place for it, in line with the existing requirements for attendance at hearings.

It requires the Appeal Commissioners to stay proceedings on the application of both parties to the appeal to allow a Mutual Agreement Procedure (MAP) in relation to a dispute about double taxation to proceed. This amendment provides that proceedings are to be stayed until the conclusion of the MAP process. However, appeal proceedings can be continued prior to the conclusion of the MAP, where either party to the appeal applies to the Appeal Commissioners for such a direction.

It allows the Appeal Commissioners to dismiss an appeal for failure to comply with a direction to attend a case management conference where they are not satisfied with a party’s reasons for non-attendance.

It provides that an assessment or amended assessment will not be final and conclusive where, within 30 days of the date of a notice of assessment, the person on whom the assessment has been made pursues redress by way of a request for a mutual agreement procedure (“MAP”). This will enable the collection of disputed tax to be suspended in cases subject to a MAP.

The insertion of section 959AW will align the treatment of MAPs and domestic appeals, advancing Ireland’s commitments to improving international tax dispute resolution mechanisms.

Finance Act 2019 amends section 990 in the Taxes Consolidation Act 1997 (TCA) to allow the Revenue Commissioners to reduce a PAYE assessment downwards without the taxpayer having to formally appeal the assessment. Section 989 TCA was deleted in the Finance Act 2017 when PAYE modernisation was introduced with the result that the facility to reduce an assessment was inadvertently removed, necessitating a formal appeal by the taxpayer. This amendment reinstates the facility to reduce an assessment and avoids unnecessary appeals to the Tax Appeals Commission.

Finance (Tax Appeals and Prospectus Regulation) Act 2019

A party dissatisfied with a determination must clearly state in what respect the determination is alleged to be erroneous on a point of law, in addition to stating dissatisfaction with the determination.

The party requesting a case stated for the purposes of appealing a decision of the Tax Appeals Commission must compile a copy of the exhibits specified in the case stated if they have them in their possession or procurement. Where the party does not have copies of the necessary exhibits, they may request that the Appeal Commissioners instruct the other party to the appeal to provide a copy of the exhibits to the party requesting the case stated.

The chairperson of the Tax Appeals Commission is the ‘authorised authority’ in relation to disciplinary matters concerning the staff of the Tax Appeals Commission.

Finance Act 2020 Changes

Finance Act 2020 provides that where a taxpayer appeals an assessment and, in connection with that appeal, makes a payment to Revenue and subsequently wins the appeal, the taxpayer will not be entitled to interest on the amount repaid.

Finance Act 2020 makes several amendments to the Taxes Consolidation Act 1997 to facilitate improvements to the tax appeals process. It allows the Appeal Commissioners to dismiss an appeal where an appellant does not comply with their direction to submit information required to progress the appeal (i.e. documents known as, respectively, a ‘statement of case’ or an ‘outline of arguments’).

It makes provision for the procedures that are to apply if an Appeal Commissioner who has been involved in the adjudication of an appeal ceases to serve as an Appeal Commissioner before the appeal process is completed.

Where a hearing has commenced but is not completed, or a hearing is completed but a determination has not been made, the appeal must be reheard as if a previous hearing had not taken place or be determined without a hearing by another Appeal Commissioner.

Where an appeal has been determined and a ‘case stated’ for an appeal to the High Court has been requested but not been completed, another Appeal Commissioner may rehear the appeal, adjudicate on the appeal without a hearing, or proceed with the completion of the ‘case stated’. The High Court is given the discretion not to deal with such a ‘case stated’ where it considers that justice would not be served by its doing so and may instead order that the appeal be reheard by the Appeal Commissioners.

Finance Act 2020 provides that an appeal against an assessment containing a surcharge is allowed only where a person’s grounds for the appeal relate to certain specified matters, such as a dispute about the information contained in the return or where there is a dispute about the date on which the return was submitted.

Finance Act 2021

Finance Ac amends section 949AQ of the Taxes Consolidation Act 1997 to improve the administration of the case stated procedure. Where a party to an appeal is dissatisfied with a determination made by the Appeal Commissioners on a point of law, the party may make an application to the Appeal Commissioners requiring them to state and sign a case (referred to as a “case stated”) for the opinion of the High Court.

Currently, the Appeal Commissioners are required to complete a request for a case stated within 3 months from the date of the request, in accordance with section 949AQ. During this 3-month period, the Appeal Commissioners are required to prepare a draft of the case stated and send it to the parties to the appeal, who then have 21 days within which to make representations to the Appeal Commissioners. Finance Act 2021 66 amends section 949AQ to extend this period by up to 42 days, as follows:

the Appeal Commissioners will send a draft of the case stated to the parties within 3 months of the request;
the parties will then have 21 days to make representations to the Appeal Commissioners;
the Appeal Commissioners will then state and sign the case no later than 21 days after the expiry of the 21-day period.

Finance Act 2022 Case States

Where a party to an appeal is dissatisfied with a determination made by the Appeal Commissioners on a point of law, the party may make an application to the Appeal Commissioners requiring them to state and sign a case (referred to as a “case stated”) for the opinion of the High Court.

Currently, a party to a determination of the TAC which is dissatisfied on the point of law must request a case stated for the opinion of the High Court within 21 days of notification of the determination. The Appeal Commissioners must then prepare and share a draft case stated no later than 3 months after receiving the request. Parties to the determination are then required to submit written representations on the draft within 21 days.

Upon receipt of such representations, the Appeal Commissioners must complete and sign the case stated within 21 days after the end of the period for responding to the draft. The party requesting the case must then send it to the High Court within 14 days of receiving it from the Appeal Commissioners.

A dissatisfied party is allowed an additional 21 days to request a case stated for the opinion of the High Court by the Finance Act 2022, extending the current period for a party to request a case stated from 21 to 42 days.

Before the Finance Act 2022, a party to a determination of the TAC who is dissatisfied on a point of law must request a case stated for the opinion of the High Court within 21 days of notification of determination. The Appeal Commissioners must then prepare and share a draft case stated no later than 3 months after receiving the request. Parties to the determination were then required to submit written representations on the draft within 21 days.

Upon receipt of such representations, the Appeal Commissioners must complete and sign the case stated within 21 days after the end of the period for responding to the draft. The party requesting case stated must then send it to the High Court within 14 days of receiving it from the Appeal Commissioners.

Finance Act 2022 extends this period by up to 21 days by allowing parties an additional 21 days to submit written representations on a draft case issued by the Appeal Commissioners, extending the current period for parties to submit written representations from 21 to 42 days.