Case Law

In Patrick J O’Connell (Inspector of Taxes) v Fyffes Banana Processing Ltd 2000 VI ITR 131 the taxpayer claimed manufacturing relief under section 443(21) TCA 1997 for the ripening of bananas for other companies within the group. The Supreme Court held that a company involved in artificially ripening bananas for someone else was not allowed. However, in Charles McCann Ltd v S O’Culachain (Inspector of Taxes) 1986 ITR 304 the company’s trade involved importing unripe bananas from Ecuador and Colombia and artificially ripening them using ethylene gas is specially constructed and equipped ripening rooms. It was held in the Supreme Court that the process of artificially ripening bananas was manufacturing.

It was held in the High Court that the pasteurizing of milk was manufacturing. Cronin (Inspector of Taxes) v Strand Dairy Ltd 1985 III ITR 441

The company separated grass seeds from impurities found in the seed. It was held to be manufacturing as the product the company ended up with was a marketable commodity and commercially quite different from the original crop (end product rye grass seed at least 98% pure). McCausland v Ministry of Commerce 1956 NIRC 36

In McGurrin v The Champion Publications Ltd 1993 IV ITR 466 it was held that advertising revenue from the publication of newspapers could not arise without sales and the taxpayer was entitled to manufacturing relief in respect of the income from newspaper advertising.

The production of j cloths and nappy liners was manufacturing as the product they ended up with was totally different from the one they started out with. O’Laochdha v Johnson & Johnson Ireland Ltd 1991 IV ITR 361

In Hussey v M.J. Gleeson & Co Ltd 1993 IV ITR 533 it was held that the process of conditioning bottled Guinness was a manufacturing process. What was involved was putting Guinness into a different part of the warehouse that was heated at a constant temperature and the fact that the contents of the bottles changed chemically and irreversibly was held to be manufacturing.

Producing chrysanthemums was cultivation and not manufacturing. Brosnan v Leeside Nurseries Ltd 1997 V ITR 21

Producing day old chicks was manufacturing. Kelly (Inspector of Taxes) v Cobb Straffan Ireland Ltd 1993 IV ITR 526

In Irish Agricultural Machinery Ltd v S O’Culachain (Inspector of Taxes) 1989 III ITR 611 it was held the assembly of farm machinery was manufacturing as all the machines had a utility, a quality and a value entirely distinct from the component parts which comprised the whole.

The production for sale of advertising materials such as TV videos, master negatives and posters was not manufacturing. O’Culachain v Hunter Advertising Ltd 1988 ITR 35

There is a sufficient change in raw material to constitute manufacturing in recycling wastepaper. P O’Muircheasa v Bailey Wastepaper Ltd 2003 VI ITR 579

It was held in Sugar Distributors Ltd 1996 ILRM 339 that the Court would not make an order under section 89 Companies Act 1963 to perfect an invalid issue of shares to enable the company to claim retrospectively manufacturing relief.