Tara Mines claims it has overpaid tax by £14m

Tara Mines has claimed it has overpaid corporation tax by £14 million and the company has asked the Revenue Commissioners to …

Tara Mines has claimed it has overpaid corporation tax by £14 million and the company has asked the Revenue Commissioners to set off its £3 million bill for 1997 corporation tax against the overpayment which extended over several years.

In the High Court yesterday, Tara secured a temporary injunction, returnable to Monday next, preventing the Revenue from taking any steps to recover the £3 million. The figures involved were not revealed during the hearing before Ms Justice Laffoy and reference was made only to "the sums specified".

Mr Paul Gallagher SC, for Tara Mines, said the company was claiming the Revenue owed it approximately four times more than it owed the Revenue. The company operates a lead and zinc mine near Navan, Co Meath.

In an affidavit, Mr Tadhg Farrell, financial controller, Tara Mines, said Tara had claimed that it was entitled to export sales relief (ESR) in respect of its trading profits for all accounting periods to December 1990, when ESR had ceased.

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The company also claimed it was entitled to manufacturing relief for its trading profits for subsequent periods.

In July, 1995, the Appeals Commissioners had delivered an interim ruling to the effect that Tara was entitled to ESR in respect of its total income from the sale of lead and zinc concentrates.

In July, 1996, the Appeals Commissioners decided Tara was entitled to ESR for the periods from 1978 to 1988.

The Revenue was dissatisfied with the rulings and asked for the matter to be referred, by way of case stated, to be brought to the High Court. Mr Farrell said the company had been advised that it was entitled to the repayments. Any steps taken by the Revenue to recover Tara's 1997 corporation tax liability were likely to cause serious embarrassment to the company and damage its commercial reputation, he said.