Revenue concerned alleged scheme could result in €110m tax losses, court told

The Revenue Commissioners is concerned a scheme allegedly involving 26 wealthy individuals here was a tax avoidance scheme that could result in up to €110m tax losses to Revenue, according to documents before the Commercial Court.

Various communications to officials during 2010 and into 2011 had stated the scheme involved using artificial capital losses to shelter capital gains, with a consequent benefit to the individual and loss to the Revenue.

Michael Collins, counsel for four businessmen challenging the issuing of formal Revenue opinions their claims for substantial capital gains losses should be disallowed, yesterday argued that Revenue is required to issue formal notices once it decides a tax advantage is gained from a transaction.