The Revenue Commissioners’ powers to tackle “aggressive” tax avoidance schemes put in place by “certain categories of taxpayers” is at the centre of an appeal by a Dublin businessman and has implications for many similar cases, the Revenue has told the Supreme Court.
Denis McDonald SC, for the Revenue, said it was very anxious for a priority hearing of the appeal by businessman Ronan McNamee, Temple Road, Dartry, against the High Court’s rejection of his challenge to a Revenue opinion notice that certain transactions in which he and his wife engaged in 2007 were tax avoidance transactions.
The tax advantage for the McNamees of the “straddle” transaction, involving Irish Government gilts and foreign exchange finance instruments, meant they avoided paying some €5.12 million in Capital Gains Tax, plus a €1.12 million surcharge. The High Court decision has implications for 26 people involved in similar straddles, with the total amount of recoverable tax estimated at up to €110 million.
'Straddle transactions' The Revenue is investigating other similar cases and Mr McNamee's action raised issues that "go to the heart" of the way the Revene operates, Mr McDonald said.
Michael Collins SC, for Mr McNamee, said he did not consider the appeal required to be prioritised.
The Chief Justice, Ms Justice Susan Denham, said the sides should prepare the appeal for hearing after which the court would consider the position. The appeal would not be heard before the end of this legal year on July 31st, she indicated.
The Revenue told the High Court it had identified about 26 cases where arrangements like that of the McNamees were concluded via a London-based merchant bank, Schroders & Co Ltd.
In November 2012, Mr Justice Brian McGovern dismissed Mr McNamee's challenge to the Revenue opinion notice. Three other challenges over similar transactions are affected by the outcome of Mr McNamee's Supreme Court appeal. Those are by Derek Whelan, a company director, Foxrock Manor, Foxrock, Dublin; John Punch, The Park, Cobh, Co Cork; and Martin Punch, a company director, The Fountain, Glanmire, Co Cork.
