InDisputes: Revenue Hedging Bets With Double Assessments

The Tax Appeal Commission (the "TAC") recently upheld an assessment raised by Irish Revenue ("Revenue") for capital gains tax ("CGT") in respect of certain transfers of shares (the "Transaction"). Unusually, Revenue also raised a separate assessment to income tax on the same taxpayer in respect of the Transaction which was also the subject of the appeal.

Background

The taxpayer and his wife held the entire shareholding of a building company. The taxpayer and his wife disposed of their shareholdings both for cash consideration and in exchange for shares in a separate company owned by their son. The taxpayer claimed relief on the Transaction. Revenue raised two separate assessments in respect of the Transaction: