Irish businessmen lose Vat-avoidance case

Three business partners who set up a scheme to avoid paying Vat on the sale of holiday homes in West Cork have lost their long-running legal challenge against a tax-assessment by Revenue.

It follows yesterday’s ruling, by the European Court of Justice, that business transactions which are “an abusive practice”, designed to avoid paying Vat under EU case law, are prohibited, even in the absence of national legislation.

The judgement means the three men — Edward Cussens, John Jennings, and Vincent Kingston — will be liable for the full Vat bill issued by Revenue on the sale of 15 holiday homes, which they had developed on land they owned in Baltimore, Co Cork.