Property Transactions
03/09/1985
Query
Does a Reverse Premium - an amount paid by a landlord to a tenant as an inducement to take up a lease - attract VAT?
Decision
No, as a supply is deemed not to have been made.
Value Added Tax
Section 5 (1), Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/74 (D)
07/04/1988
Query
Lease documents held in escrow pending tenant fitting out unit to landlord's satisfaction/ specification.
Decision
The date of supply of taxable leases is the date the signed lease documents are released from escrow.
Value Added Tax
Section 19 (1), Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/74 (E)
07/07/1989
Query
A bakery transferred its trade to a wholly owned subsidiary and allowed the subsidiary to use the bakery premises and equipment without a lease. The parent company later sold the freehold interest in the premises, together with the equipment to the subsidiary, who in turn sold them to a third party who went on to carry on the bakery trade.
Decision
In the circumstances of this case, while technically the initial surrender of possession would have given rise to a self-supply, given that all parties concerned were fully taxable, Revenue accepted that the provisions of Section 3(5)(b)(iii) could apply.
Value Added Tax
Section 4 (3), Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/74
05/02/1990
Query
The case of a company with two subsidiaries, one held the freehold reversion while the second held a long leasehold interest. The latter created long leases to a third party whilst the former carried out the redevelopment work and sold the freehold interest to a pension fund. The company which held the freehold reversion was treated as a taxable person as regards the disposal of the freehold interest.
Decision
In the circumstances of this particular case, a joint venture registration was allowed between the holder of the leasehold interest and the developer who held the freehold reversion.
Value Added Tax
Section 4 (1)(b) and 8 (8), Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/74 (H)
11/01/1995
Query
In a sale and leaseback situation the lessor was allowed deductibility on post-lease development expenditure as the latter related directly to the completion of the development of the property.
Decision
Deductibility allowed subject to usual criteria and to the fact that the enhanced value of the property was reflected in the value of the interest disposed of.
Value Added Tax
Section 12, Value Added Tax Act, 1972
Origin: Indirect Taxes Policy and Legislation
File ref:A/74