THE STATE has denied claims by Dunnes Stores that a tax assessment of €36.4 million imposed on the supermarket chain arising out of the levy on plastic shopping bags is invalid. It has also dismissed the company’s claim the plastic bags at issue do not fall within the scope of the levy.
In proceedings before Mr Justice John Hedigan, Dunnes Stores disputes the Revenue’s tax assessments over four years to November 2008 on grounds including a claim that the definition of a plastic bag in the 2001 regulations is “so uncertain” as to render the regulations invalid.
The case arose after Dunnes received four assessments totalling €36.4 million from the Revenue in late 2009. The Revenue complained the levies due for plastic bags had not been collected.
The company did not accept the assessments and argued the plastic bags in relation to which those assessments were made were not subject to the levy. Those plastic bags were used in the company’s stores in Northern Ireland.
In its action against the Revenue Commissioners, the Minister for the Environment and Local Government, Ireland and the Attorney General, Dunnes claims the levy relates to larger bags given to customers at point of sale for their shopping but the assessments wrongly included other bags used for wrapping fruit and vegetables for hygiene purposes.
The respondents reject the claims.