Saatchi & Saatchi Advertising Ltd v McGarry

• Jurisdiction: Ireland
• Judge: Barron J.
• Judgment Date: 30 July 1996
• Neutral Citation: 1996 WJSC-HC 4584
• Docket Number: No. 127 R/1995
• Court: High Court
• Date: 30 July 1996

1996 WJSC-HC 4584

THE HIGH COURT

No. 127 R/1995

SAATCHI & SAATCHI ADVERTISING LTD v. MCGARRY

SAATCHI AND SAATCHI ADVERTISING LIMITED

APPLICANT

AND

KEVIN MC GARRY (INSPECTOR OF TAXES)

RESPONDENT

Citations:

FINANCE ACT 1980 CH VI

O CULACHAIN V HUNTER ADVERTISING LTD UNREP MURPHY 19.4.88 1990/4/1080

FINANCE ACT 1990 S41

FINANCE ACT 1980 S41(8)

REVENUE COMMISSIONERS V DOOLEY 1933 IR 750

FINANCE ACT 1980 S39

CAPE BRANDY SYNDICATE V IRC 1921 1 KB 64

TEXACO IRELAND LTD V MURPHY (INSPECTOR) OF TAXES 1991 2 IR 449

Synopsis:

REVENUE

Corporation tax

Relief - Goods - Manufacture - Films - Advertisements - Film production by applicant company - Decision of High Court - Film production ruled not to be manufacture of goods within terms of statutory relief - Subsequent amending legislation directed that film production be deemed the manufacture of goods - Amendment directed that it be deemed always to have applied for purposes of W such relief - Original relief provisions stipulated that claim to relief must be made before date on which assessment for relevant accounting period became final - Finality of relevant assessment preceded amendment creating right to extended relief - Applicant company not entitled to claim extended relief under amendment - Finance Act, 1980 (No. 14), ss. 39, 41 - Finance Act, 1990 (No. 10), s. 41 - (1995/127 R - Barron J. - 30/7/96)

|Saatchi & Saatchi Advertising Ltd. v. McGarry|

STATUTORY INTERPRETATION

Taxation

Relief - Right - Conferment - Extension - Right to relief extended by amending enactment - Time limit imposed by original enactment on application for relief - Amendment expressly stated that amendment be deemed always to have applied - Application for relief under amendment ruled to be out of time - (1995/127 R - Barron J. - 30/7/96)

|Saatchi & Saatchi Advertising Ltd. v. McGarry|

1 Judgment of Barron J.delivered on the 30th day of July. 1996

2 This case stated gives rise to a net question as to the proper construction of certain provisions of Chapter VI of Finance Act, 1980as amended.

3 This chapter deals with relief in relation to certain income of manufacturing companies. Relief is available to companies complying with the relevant provisions of that chapter in respect of certain goods manufactured by such companies within the State in the course of theirtrade.

4 In O'Culachaln -v- Hunter AdvertisingLimited, a claim for relief in respect of a film made by an advertising agency was rejected by the High Court. Subsequently, by virtue of the provisions of Section 41 ( 1CC5) of Finance Act, 1990 it was provided in effect that a film made in similar circumstances should be eligible for relief. The relevant provisions of Section 41 ( 1CC5) are as follows. Having defined film, it was provided -

5 ""(b) the following provisions shall apply, and shall be deemed always to have applied, for the purposes of relief and of this chapter in relationto a company carrying on a trade which consists of or includes the production of a film:"

6 (i) the production of the film by the company claiming the said relief shall be regarded as the manufacture within the State ofgoods."

7 By virtue of these provisions, the Applicant seeks relief in respect of films manufactured by it during several accounting years prior to 1990. This claim was rejected by the Revenue upon the basis of Section 41 (8) of Finance Act, 1980. That provision is as follows:

"(8) A company shall not be entitled to relief under this chapter in relation to a trade as respects a relevant accounting period unless it makes a claim for the relief under subsection (2) before the date on which the assessment for the accounting period which coincides with or includes that relevant accounting period becomes final andconclusive."

8 It is common case that the assessments of the Applicant had become final before the passing of the 1990 Act and the date of...