Revenue appeals €9m Harris tax-breaks decision

The Revenue Commissioners have appealed the Appeal Commissioner's decision that millionaire developer Robert "Pino" Harris is entitled to a payout of €9m in tax breaks as a result of his expenditure in a venture to operate luxury high-class yachts.

The case, before Ms Justice Mary Laffoy in the High Court today, arose after Mr Harris, in the income tax year to April 5, 2001, claimed certain income tax reliefs arising from his status as a member of a limited partnership registered under the law of the Cook Islands, the Christina O Limited Partnership.

Mr Harris is opposing Revenue's action.

Mr Harris claimed the tax relief arising from his expenditure in a venture to purchase the luxury yacht, the 'Christina O', which had previously been owned by Greek shipping magnate Aristotle Onassis in 2000, which he named after his only daughter.

Mr Harris claimed the partnership was established for the purpose of acquiring and operating high class luxury yachts and that, in the course of its business, the partnership acquired and refurbished the 'Christina O' for approximately €65m.

In his tax return filed in January 2002, Mr Harris claimed relief for trading losses, capital allowances and interest arising from the purchase and refurbishment of the 'Christina O' by the partnership.

In October 2004 the Appeal Commissioners decided Mr Harris was entitled to set off, against his entire income, capital allowances and interest payments arising from the partnership.

The Appeal Commission determined that Mr Harris was entitled to a payout of €9.12m.

The hearing continues.