Financial securities trading group seeks High Court ruling over tax relief

Company wants to claim mitigation on €46.m of losses

Mr Justice David Barniville set two days for the hearing of the case in November. Photograph: Bryan O’Brien

Mr Justice David Barniville set two days for the hearing of the case in November. Photograph: Bryan O’Brien

 

An international financial securities trading group employing more than 500 in Dublin’s IFSC has asked the Commercial Court to resolve a row over its claim for tax relief on €46.6 million losses against profits within the Irish members of the group.

Susquehanna International Holdings (SIH), which has more than 1,850 employees worldwide, has three Irish sub group members trading in marketable securities in the European markets.

The three, Susquehanna International Group (SIG), Susquehanna Atlantic (SA) and Susquehanna International Securities (SIC), were established in 1999 in the IFSC For the three tax years 2010 to 2012, SIG surrendered losses to the SIS company in which SIS sought to set those losses against profits for tax purposes.

The total loss involved was €46.6 million.

In April last year, a Tax Appeal Commissioner determined that SIH, the Delaware US-based holding company, was tax resident in the US for the purposive interpretation of the relevant double taxation treaty with America.

The Irish companies were therefore entitled to avail of group relief under our taxation law, the commissioner said.

Revenue appealed that determination to the High Court which on Monday admitted the matter to the fast track Commercial Court at the request of the Irish firms.

Paul Sreenan SC, for the Irish companies, said there was consent to admission to the commercial list from Revenue. Mr Justice David Barniville set two days for the hearing of the case in November.

Francis Woods, chief financial officer for each of the three Irish companies, said in an affidavit the underlying value of the tax claims to the SA and SIC companies, on the basis of a 12.5 per cent corporate tax rate for trading companies, is €5.8 million.

While this claim only relates to the 2010-12 years, the ability of the Irish group to avail of group reliefs affects subsequent years and is an ongoing issue for them, Mr Woods said.