O'Laoghaire v Avonree Buildings Ltd

• Jurisdiction: Ireland
• Judge: Mr. Justice O'Hanlon
• Judgment Date: 24 February 1983
• Neutral Citation: 1983 WJSC-HC 3359
• Court: High Court
• Date: 24 February 1983

1983 WJSC-HC 3359

THE HIGH COURT

(CIRCUIT COURT APPEAL)

O'LAOGHAIRE v. AVONREE BUILDINGS LTD.

BETWEEN:

P. C. O LAOGHAIR, INSPECTOR OF TAXES

-and-

AVONREE BUILDINGS LIMITED

Subject Headings:

REVENUE: income tax

Mr. Justice O'Hanlon

1 I have come to a different conclusion from that of the learned Circuit Court Judge as to the manner in-which the question of law referred to in the Case Stated should be answered.

2 Sec. 31 of the Finance Act1975provided for relief against liability to income tax for certain trading companies where the value of the company's trading stock at the end of the accounting period exceeded the value of its trading stock at the beginning of the accounting period.

3 The Section also provides, however, that for the purpose of computing the value of a company's trading stock, there should be deducted therefrom "any payments on account…received by the company in respect of any trading stock."

4 The question arising for decision in this case is whether in the case of the Respondent Company, Avonree Buildings Limited, who were engaged in the sale and erection of prefabricated houses and buildings, advance payments of deposits by clients should be regarded as "payments on account...