Louis Fitzgerald loses bid to avoid €400,000 in back taxes

The owner of some of Ireland’s best-known pubs, including Kehoe’s and The Stag’s Head in Dublin, has lost a seven-year €400,000 tax battle with the Revenue Commissioners.

The Court of Appeal has ruled that Louis Fitzgerald must pay a total of €400,000 in domiciliary levy for 2011 and 2010, upholding a High Court judgment of 2021.

Mr Fitzgerald is the owner of one of the largest hospitality groups in the country and some of the other Louis Fitzgerald Group companies include Bruxelles, The Gin Palace, Grand Central and The Quays as well as An Poitín Stil, The Arlington Hotel and The Louis Fitzgerald-Hotel.

The case first came to the High Court after Mr Fitzgerald appealed a 2020 decision by the Tax Appeals Commission that allowed a €400,000 tax assessment by the tax authority to stand in 2015.

Domicile Tax of €200,000 is payable by any Irish resident whose worldwide income exceeds €1m where their Irish property is worth more than €5m and their income tax liability for the year is less than is €200,000.

Mr Fitzgerald stated that he had invested €25.2 million in the construction of the Louis Fitzgerald Hotel at Newlands Cross and €14.6 million in plant and machinery and that the hotel made losses in both 2010 and 2011 have made.

Mr. Fitzgerald applied the losses to his hospitality business and claimed nearly $1.5 million in income tax refunds for 2010 and 2011.

He argued that he was not liable for the domiciliary tax since his worldwide income was zero and the losses he suffered in his hotel business reduced the amount of income from any of his other sources of income.

Mr. Fitzgerald also argued that since he paid €209,281 to the Universal Social Charge (USC) for 2011, he would not be bound by the residence tax for that year.

Ms. Judge Caroline Costello found that Mr. Fitzgerald was “a relevant person” for the full domiciliary duty for each of the years and that trading losses are not deductible in calculating worldwide income for domiciliary duty purposes. She also dismissed Mr. Fitzgerald’s argument that USC is an income tax.

“The mere fact that income tax and USC are each taxed Income doesn’t make USC an ‘income tax,'” she said.

https://www.independent.ie/business/irish/louis-fitzgerald-loses-bid-to-avoid-400000-tax-bill-42128396.html Louis Fitzgerald loses bid to avoid €400,000 in back taxes

Fry Electronics Team

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