Robert "Pino" Harris has won an interim victory in his legal confrontation with the Revenue over €9.14 million in tax relief on his investment in the Christina O, the luxury yacht named after the only daughter of Greek shipping tycoon Aristotle Onassis.
The multi-millionaire truck dealer is still facing a High Court challenge from Revenue over the tax relief he claimed in respect of his involvement in a Cook Islands partnership that owns the yacht.Other Irish residents are involved in the partnership, although Mr Harris is the only one to have been named so far.
However, business figures connected with the yacht include solicitor Ivor Fitzpatrick, who is also an Aer Lingus director, and developer Paddy McKillen.
Mr Harris went to the Appeal Commissioner when Revenue originally tried to disallow the rebate he claimed for the tax year that ended in April 2001.
When the Appeals Commissioner found in his favour, Revenue said it would go to the High Court for a ruling on a point of law. Revenue did not want to give Mr Harris his refund while that case was outstanding, a stance that Mr Harris challenged in the High Court. The Supreme Court ruled yesterday he was entitled to the money while that case was pending.
Mr Harris is best known as the owner of the Irish distribution rights for the Japanese truck brand Hino and marques such as Isuzu and Iveco. He is known also as a savvy property investor.
His case turns on a legal interpretation of part of the Taxes Consolidation Act of 1997. Mr Harris says he was entitled under Section 1013 of that Act to claim tax back from Revenue for his share of the capital expenditure and interest payments on the yacht that were made by Cook Islands partnership. He also claimed relief for his share of the trading losses incurred by the partnership.
Revenue's interpretation of the Act is that Mr Harris is not entitled to the relief. In the Finance Act this year, the Government amended Section 1013 to prevent other Irish residents from relying on a similar interpretation of the Act to reduce their tax bill by involvement in similar foreign limited partnerships.
Described as the most luxurious yacht in the world, the Christina O was bought by the Cook Islands partnership some years ago and refurbished at a cost of €50 million. It can host events for up to 350 guests and can be hired for €110,000 per week.
While records in the Companies Office indicate that two Dublin-registered entities had an investment in the yacht, it is not clear whether these companies are involved in the Cook Islands partnership per se.
The first is Sandyway Investments, whose directors are Mr Fitzpatrick and solicitor Cormac Gordon. In 2000, the Irish Nationwide Building Society extended a mortgage for €2 million to Sandyway, secured against the Christina O. Sandyway's majority owner is a company called Idyll Investments, whose directors include Mr McKillen. The other directors are Jennifer Jackson and Anita Newton-Smyth.
