The recently published annual report of the Tax Appeals Commission ("TAC") for 2022 demonstrates the continued impressive performance of TAC as a forum for resolving Irish tax disputes, with TAC closing its highest number of appeals to date in 2022.
2022 Statistics
The key statistics for 2022 are as follow:
- 2,661 appeals, valued at €605 million, were closed in 2022. This represents a 49% increase from the number of appeals closed in 2021 and is the highest number of appeals closed by TAC to date.
- 1,454 appeals were received by TAC in 2022, valued at €208 million. This is consistent with 2021, when 1,476 appeals valued at €275 million were received.
- 553 hearings were scheduled in 2022 (270 of which were held remotely), which represents a significant increase on the 188 hearings scheduled in 2021.
- 190 determinations were issued in 2022 (affecting 237 appeals valued at €292 million), up from 130 in 2021.
- Corporation tax appeals were significantly the highest value appeals determined during 2022, with 18 appeals determined in respect of corporation tax totalling €195.7 million.
Resolving Disputes
TAC's efficiency in resolving tax disputes is clear from the statistics above, not only in the number of determinations issued but also in the number of tax appeals closed during the year. Interestingly, 1,652 of the 2,661 appeals closed during 2022 (ie, 62%) were resolved by way of settlement. This corroborates practical experience of the TAC process, which seeks to facilitate resolution of the dispute at all stages.
TAC also offers considerable procedural flexibility. In 2022, almost 50%of appeals were scheduled remotely. In addition, TAC scheduled 91 case management conferences in 2022 to assist in clarifying relevant issues and identifying areas where agreement could be reached in advance of an appeal hearing.
Advice for Clients
TAC remains an effective option for taxpayers to resolve high-value complex tax cases in an efficient and confidential manner. The high number of appeals resolved by settlement in 2022 shows that the TAC process itself often provides the impetus for parties to resolve issues in dispute, without the need for a full appeal hearing or determination.
TAC should therefore be considered as an option by taxpayers in respect of all relevant disputes with Irish Revenue.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.