TRAP@NCI

What is trade for Irish Tax purposes: an examination of case law.

Hennessy, Catherine (1999) What is trade for Irish Tax purposes: an examination of case law. Undergraduate thesis, Dublin, National College of Ireland.

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Abstract

Income tax was first introduced by William Pit in 1799 as a temporary measure to raise revenue. It was subsequently never abolished.

Until the passing of the Corporation Tax Act, 1976 Irish income tax was levied on the world-wide profits of both individuals and companies, resident in this country. This Corporation Tax Act provides for the taxing of profits of resident companies, while the Income Tax Act, 1967 provides for the taxing of resident individuals. Both these Acts were consolidated under The Taxes Consolidated Act. This Act and the Annual Finance Acts contain the legislation upon which income and corporation tax law is now based. In addition, regulations issued by the Revenue Commissioners, under powers conferred by the above legislation, set out certain detailed tax rules relating to this legislation.

Individuals and companies can make profits, from various commercial activities. One of these activities is 'trading'. Trading profits made by an individual, partnership or trust is assessed for income tax, while those of a company are assessed for corporation tax. However, before the issue of tax arises, it must be established whether the profits being assessed are genuinely
as a result of 'trading', as their treatment for tax purposes can be significantly affected.

The tax legislation passed regarding 'trade' seems, in parts, very inadequate and is challenged continuously in the courts. Because of this, the courts and case law play a very significant role in the definition of trade and it's treatment for tax purposes. However, like all case law, tax case law is dynamic and only remains part of tax law until it is overruled by the judgement of a higher court or by legislation.

Although the Irish Courts adopt English case law fairly readily there have been exceptions. These exceptions may be a sign of the Irish judiciary's increasing reluctance to act as legislators rather than its reluctance to adopt the judgements of it's English Counterparts. In this paper I have attempted to look at the treatment of 'trade' by legislation, some of the areas of 'trade' which have been challenged in the courts and the contribution of tax case law to Irish tax law.

Item Type: Thesis (Undergraduate)
Subjects: K Law > KDK Republic of Ireland > Irish Trade Tax
Divisions: School of Business > BA (Honours) Accounting and Human Resource Management
Depositing User: Aisling Gorby
Date Deposited: 26 Apr 2010 09:49
Last Modified: 26 Nov 2014 15:05
URI: http://trap.ncirl.ie/id/eprint/111

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