Revenue decisions challenged in court

A number of business people and company directors have challenged decisions by the Revenue Commissioners disallowing them up to €6.2m on grounds that transactions they engaged in allegedly amounted to tax avoidance measures.

Mr Justice Brian McGovern is hearing one of four cases brought in the Commercial Court to determine key legal issues relating to disputed transactions involving 26 high net worth individuals.

The applicants claim the disputed decisions arose from pre-determined views within Revenue that several people were engaged in tax avoidance via arrangements to create and use contrived capital losses. Revenue took the view that one scheme was used to generate artificial capital losses of €409m to shelter capital gains tax of over €85m.