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Court of Appeal dismisses appeal from High Court, and affirms ruling - by way of case stated from the Tax Appeals Commission - that: (a) the statutory 'domicile levy' of €200,000 per annum which applied to a person domiciled in the State with a worldwide income of over €1 million and property in the State of over €5 million but low income tax liability applied to the taxpayer in question in 2010 and 2011, notwithstanding that certain expenses brought his income below €1 million, on the grounds that the legislation expressly disallowed such deductions; and (b) the Universal Social Charge (USC) did not come within the definition of 'income tax' for the purposes of computing the levy, on the grounds that the USC arose under a different statutory provision.
Costello J (nem diss): Tax - case stated to High Court by Appeal Commissioner - whether taxpayer liable to 'annual domicile levy' of €200K for years 2010 and 2011 - Part 18C of the Taxes Consolidation Act 1997 - owner of hotels - resident and domiciled in Ireland - capital expenditure of €25 million on construction of hotel and €14 million on plant and machinery - income from other sources - income tax refunds granted in 2010 and 2011 - retention of €200K for each year in respect of domicile levy - whether income had exceeded €1 million when reduced by losses - s. 531AA(1) - definition of 'world-wide income' - whether losses were an 'amount deductible' from world wide income - whether universal social charge (USC) was an 'income tax' - construction of tax statutes - burden of proof on taxpayer.
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