Right of appeal against Appeal Commissioners' ruling in relation to tax assessment pending hearing of other grounds of appeal

The Revenue Commissioners issued income tax assessments against the taxpayer for the tax years 1985 – 2001. The taxpayer appealed the assessments to the Appeal Commissioners on various grounds and argued that a number of assessments were issued outside the statutory time limit of 4 years under section 924(2) (b) TCA 1997. The Appeal Commissioners decided that the Inspector of Taxes was not precluded from making the relevant assessments.

The taxpayer wished to appeal the decision of the Appeal Commissioners to the Circuit Court but the Appeal Commissioners ruled that they had made an interim ruling only and not a determination and therefore the taxpayer did not have the right to appeal to the Circuit Court.

The issue before the High Court in this case was whether the decision of the Appeal Commissioners that each assessment was valid can be subject to an immediate appeal or whether any right to appeal arises only on a determination of the appeal against each assessment.

The taxpayer's argument before the Court was that he had two distinct and separate rights of appeal. First, the validity of the assessment could be challenged under section 955(3) TCA 1997. Secondly, he can appeal any amount or matter in the assessments under section 933 TCA 1997. In respect of both rights to appeal, the taxpayer was entitled to a hearing before the Circuit Court. The taxpayer claimed that by determining that the assessments were valid the Appeal Commissioners had therefore made a determination under section 933(4).

The Appeal Commissioners argued that they did not make a final determination under section 933(4) TCA 1997 when deciding that the Inspector of Taxes was not precluded from making the assessments. It was only when, and not before, the Appeal Commissioners gave their determination on the assessments under appeal that the taxpayer had a right to appeal to the Circuit Court.

The Court considered the wording of section 942 TCA and held that it was clear that there was only one appeal. The taxpayer's claim that section 955(3) and section 924 TCA 1997 confers on him a right of appeal that is separate and distinct from the usual form of appeal was not supported by the provisions of either of those sections. There was a single appeal only and that lay upon determination of the appeal by the Appeal Commissioners. Section 942 TCA 1997 prevents interim appeals on decisions of an interim ruling pending a determination of the Appeal Commissioners.

The taxpayer was refused the right to appeal.

The full text of this case is available at http://www.bailii.org/ie/cases/IEHC/2010/H264.html