Land Rover is a car for the BIK tax, the Appeals Committee rules

A company has to pay a controversial €31,680 tax bill after the Tax Appeals Commission (TAC) failed to convince a Land Rover Discovery 4 is not a car.

The company provided two Land Rover Discovery 4 vehicles to two company executives for their personal use and paid a five per cent benefit in kind tax after the Land Rover models were classified as vans for tax purposes

However, the Revenue Commissioners disputed this and issued a valuation of €31,680 for 2015, 2016 and 2017 after determining that the Land Rovers were cars for which the higher in-kind benefit rate of 30% of the land’s original market value Rover applies.

The company appealed the tax complaint and has now ruled in favor of the tax authority in the decision.

Tax Appeals Commissioner, Conor O’Higgins, has determined that the two Land Rover Discovery 4 cars are cars within the meaning of the Tax Consolidation Act 1997 and that the tax assessment of €31,680 must stand.

In his statement, Mr. O’Higgins stated that the variety of facts and statistics highlighted in the written submission and during the Company’s hearing “does not take a Land Rover Discovery 4 outside the definition of a car.”

Mr O’Higgins explained that “it would take an extraordinary leap for the commissioner” to conclude that the Land Rover Discovery 4 was not designed to carry both driver and passengers and therefore met the basic definition of a car .

At the hearing, the company argued that a Land Rover Discovery 4 could not be considered a ‘road vehicle’ or car, so no tax was due.

The company said that despite having previously paid taxes to the IRS for a monetary benefit for personal use of two vans, the Land Rover Discovery 4 now claimed to be neither a van nor a car, the Land Rover Discovery 4 falls outside the legal framework for taxation of vehicles being granted as a valuable benefit and therefore could not become taxable.

The company argued that in order to be defined as such, a vehicle must be one whose use is “restricted to … the road”.

Mr O’Higgins stated in his statement that it is undoubtedly true that the Land Rover Discovery 4 “is more robust and has more options than, say, your average sedan or hatchback”. Land Rover is a car for the BIK tax, the Appeals Committee rules

Fry Electronics Team

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