CPDStore Ireland

There are over 60 specific provisions in the Tax Acts to challenge a ‘primarily tax motivated, non bona fide commercial transaction’. The omnipresent threat of the general anti-avoidance provision, TCA, section 811C, also lurks in the undergrowth to catch any other perceived abuse of the tax system. Other provisions such as TCA, sections 806 and 817 could apply where there has been any tax motivation.

The specific anti-avoidance measures cover transactions such as retirements, company reconstructions, amalgamations, share disposals, company groups, transfer pricing, interest deductions, company share buybacks and an assortment of investment opportunities. These provisions entitle Revenue to modify or deny the tax benefits.

Although the Irish Courts have considered the general anti-avoidance provision, there has been no corresponding deliberations on the meaning of the concept of a ‘primarily tax motivated non bona fide commercial transaction’. However, there have been some recent Court of Appeal decisions in England and Wales that have provided judicial clarification. Though not binding, such authorities are persuasive in this jurisdiction specifically where similar statutory wording is under consideration.

While there is no widespread paranoia, there are concerns among practitioners of the possibility that Revenue may challenge any transaction benefiting from a tax allowance, relief, or deduction. The seminar considers the Court of Appeal decisions and the steps that practitioners should take to satisfy Revenue of the commercial legitimacy of any impugned transactions where tax avoidance is not the primary motivation.

Conor Kennedy covers the following topics during this course:

• A review of the assortment of specific tax avoidance provisions
• Case law that considers non contentious tax planning
• Legal analysis
• Type of transactions that would not be primarily tax motivated
• Steps to be followed when advising clients