Court of Appeal Overturns High Court Ruling, Denies Covidien €45.9M VAT Refund

• The Court of Appeal overturned a High Court decision favoring Covidien, impacting a potential VAT refund of €45.9 million.
• The case involves VAT recovery on services related to managing subsidiaries and corporate transactions.
• The High Court initially supported VAT deductibility for such services, aligning with EU VAT principles.
• The Court of Appeal found the Tax Appeals Commission’s conclusions legally flawed, requiring further examination.
• The decision creates uncertainty for corporate groups in Ireland regarding VAT recovery on similar costs.
• The case is remitted to the Tax Appeals Commission for reconsideration under the correct legal framework.

Source: grantthornton.ie

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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