Revenue is not appealing a High Court ruling relating to the tax treatment of Kerry Co-op patronage shares.
The board of the co-op has confirmed it’s been notified by the Revenue Commissioners of its decision.
In 2016, Revenue notified over 400 Kerry Co-op shareholders of a possible tax liability on patronage shares issued to them in the years 2011 to 2013.
Revenue concluded the shares were regarded as trading income and subject to income tax, USC, and PRSI.
Kerry Co-op contested this on behalf of its 3,500 milk suppliers to the Tax Appeals Commission, which in 2020 ruled against Revenue.
The decision was appealed by Revenue to the High Court which earlier this month upheld the decision of the Tax Appeals Commission.
Revenue has confirmed it won’t be appealing this decision, and will be dealing directly with the taxpayers involved regarding the implications.
Chairman of Kerry Co-op, Denis Carroll, says the board welcomes the decision, saying it’s hugely significant and very positive news for their 3,500 milk suppliers and all co-operatives across the country.
It added it finally closes a long and arduous chapter relating to the correct and appropriate tax treatment of patronage shares.
