Irish Revenue Commission Loses Tax Residency Case

by Jason Gorringe, Tax-News.com, London

14 October 2003

Irish businessman Mr Denis O'Brien has successfully appealed against the Revenue Commission concerning his residency status for tax purposes, the Irish Times reported at the weekend.

The case concerns Mr O'Brien's sale of his stake in Esat Telecom to British Telecom for IRP230 million in 2000 whilst he was resident in Portugal. At the time, capital gains tax was levied at 0% on Portugal compared to 20% in Ireland.

At the same time as ruling in favour of O'Brien, the Supreme Court refused his application that his hearing be made in private to bar a Sunday newspaper reporting on the case, in which it was alleged he owed the Revenue 55 million euros from his time in residency in Portugal. The Court however ruled that there were no grounds for allegations that O'Brien had acted dishonestly in his dealings with the Revenue Commission and said any suggestion otherwise would represent a "grave breach of the law".

The Revenue Commission is said to be considering a review of the Revenue Appeal Commission's decision in the High Court, according to the Irish Times.

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