City of Dublin Steam Packet Company v Revenue Commissioners

• Jurisdiction: Ireland
• Judgment Date: 30 March 1926
• Date: 30 March 1926
• Court: High Court (Irish Free State)

H. C.,

City of Dublin Steam Packet Company

and

Commissioners of Inland Revenue

"British company carrying on any trade or business, or any undertaking of a similar character, including holding of investments" - Shipping company ceasing to carry on any shipping - Continuing to carry on various operations for profit or towards distribution of profits among its shareholders -Finance Act, 1920 (10 11 Geo. V., c. 18), s. 52 (2) (a).

The Finance Act, 1920, by s. 52, imposes a duty called Corporation Profits Tax on (inter alia) "the profits of a British company carrying on any trade or business or any undertaking of a similar character, including the holding of investments." By a deed of settlement a company was formed for the purpose (inter alia) of trading by means of steam vessels between the ports of Dublin and Liverpool and other places. Several Acts of Parliament were passed in relation to the company, including one which incorporated the company as from July, 1833, with perpetual succession. The company was contractor for the carriage of mails from Kingstown to Holyhead for many years up to 1920. Prior to the two "accounting periods" (i.e., the twelve months ending on February 28th, 1922, and February 28th, 1923) during which it was sought to assess the company to Corporation Profits Tax, two of the company's mail boats had been sunk by enemy action during the war, and their cargo steamers had been commandeered by the British Government. In 1920 the company discontinued the mail and passenger service and offered its two remaining mail boats for sale. During the two accounting periods the property of the company consisted of the two mail boats, certain stores required for the steamers, a leasehold interest in its offices in Dublin, a small property in Limerick, formerly used in connection with its trading, and Government and other stocks and securities. These securities amounted to about £1,500,000. Since 1920 the company did not...