Case Law

Saatchi & Saatchi Advertising Ltd v McGarry (Inspector of Taxes) 1998 V ITR 376 raised the question of a proper construction of section 41 FA 1990 which extended manufacturing relief to film production. Prior to the Finance Act 1990 a claim for manufacturing relief in respect of a film made by an advertising agency was refused by the High Court in O’Culachain v Hunter Advertising Ltd IV ITR 35. The applicant felt it would be absurd to disallow his claim as he felt the Finance Act reversed the decision in O’Culachain case. The taxpayer’s appeal was disallowed.