The High Court ruled that a taxpayer cannot appeal an interim decision by the Appeal Commissioners before they determine the appeal against the tax assessment. Mr Justice John Hedigan refused Brendan O’Rourke’s request for relief, finding that the law provides one appeal to the Circuit Court after the commissioners complete their determination.
The Revenue Commissioners issued income tax assessments against Mr O’Rourke on 1 February 2006 for tax years 1985 to 2001, totalling €15 million. He appealed to the Appeal Commissioners on several grounds, including that some assessments had been made outside a statutory four-year time limit.
After hearing evidence and submissions, the Appeal Commissioners ruled that the inspector of taxes was not precluded from making the assessments for the years in question. Mr O’Rourke sought to appeal that ruling to the Circuit Court. But on 28 October 2009, the commissioners said their ruling was interim rather than a determination, so it did not carry a right of appeal at that stage. Other grounds of his appeals remained pending before them.
Mr O’Rourke argued in the High Court that the validity ruling was a distinct decision under section 955(3) of the Taxes Consolidation Act 1997 and could be appealed separately from any later dispute about the amounts assessed. The Appeal Commissioners argued that a Circuit Court appeal could arise only after they had determined the appeals against the assessments.
Justice Hedigan held that section 942 provides for an appeal against an assessment and that the legislation does not create a separate appeal for each ground. Section 955(3), he said, gives a taxpayer an express ground to challenge an assessment; it does not create a separate appeal on that issue. Where the commissioners find that an assessment was validly made, it stands except for amounts or matters subject to a valid appeal on other grounds.
The court concluded that there is one appeal for each assessment, determined by the Appeal Commissioners, and that a Circuit Court appeal can follow only after that determination. Allowing appeals on preliminary issues during the hearing could lead to multiple appeals and delay, the judge said. The decision addresses the timing of any appeal; it does not determine the remaining grounds concerning the assessments. The applicant was not entitled to the relief sought.