Former Managing Director Loses Appeal Over €317,312 Tax Bill

A former managing director has lost an appeal regarding a €317,312 Capital Acquisitions Tax (CAT) bill linked to an inheritance from his late aunt. The man, who has reportedly faced emotional challenges, inherited a house from his aunt following her death in 2017. Last year, the Revenue Commissioners assessed him for an underpayment of €288,465 in CAT, along with a surcharge of €28,846 for late submission of the tax return.

The Revenue Commissioners determined that the inherited property was not the primary residence of his aunt. Additionally, they cited that the man had received both accommodation and cash gifts from her estate. Contesting this assessment, he argued for exemptions from the CAT, claiming he was a dependent relative of his aunt and had been rendered permanently incapacitated due to mental health issues.

In a submission made to the Tax Appeals Commission, it was stated that he is nearing the end of his working life and is unable to financially support himself. The submission noted, “He is very vulnerable and emotionally struggling to survive, which his medical reports have clearly stated.”

Despite these claims, Clare O’Driscoll, the appeals commissioner, concluded that the evidence did not support the assertion of total incapacity. According to her findings, based on medical documentation, the man was not permanently incapacitated at the time of his aunt’s passing in 2017. O’Driscoll pointed out that a LinkedIn profile from August 2022 indicated the man was employed as a managing director since July 1988.

A letter submitted on his behalf in April 2024 by a medical professional described his condition as “extremely disabling” over the past 25 years. The doctor emphasized that the anxiety linked to his condition was among the highest for any mental health issue. He stated, “Resolution to this condition has been impossible to general adult psychiatry to date,” and suggested that the High Court might consider designating the man as a vulnerable adult to protect his welfare. However, the doctor did not testify in person during the appeal.

The Revenue Commissioners maintained that the man was not incapacitated at the time of his aunt’s death. O’Driscoll acknowledged that he had struggled with mental health issues since at least 2008. Yet, she found no records indicating that he had ever been totally incapacitated, nor was there any documentation concerning his health status in 2017. Consequently, she ruled that he did not qualify as a dependent relative and was therefore ineligible for an exemption from the CAT.

This ruling brings finality to a case that highlights the complexities of tax obligations following inheritances and raises questions about the support systems available for individuals facing mental health challenges.