Case Law

This page shows a summary of relevant case law. To view the section of legislation to which the case law applies, click the link below:

Case Law

The distinction between a capital profit made on the disposal of an investment and a trading profit made as the result of a ‘deal’ was expressed in California Copper Syndicate v Harris 1904 5 TC 159.

Goods and services provided for consideration to non-members of a club, any surplus arising will be taxable. Carlisle & Silloth Golf Club v Smith 1913 6 TC 198

Compensation paid in respect of revenue expenditure will itself be revenue in nature. Alliance & Dublin Consumers Gas Co v McWilliams 1927 I ITR 207

The selling off of whiskey stocks over a period after the liquidator had ceased to trade was not trading. IRC v Old Bushmills Distillery Co Ltd 1928 12 TC 1148

In N Cohan’s Executors v IRC 12 TC 602, executors were held not to be trading when they completed the purchase of a contract to buy a ship entered into by the taxpayer before his death and when they resold the ship.

Income generated from the purchase of sweepstake tickets was trading income. HH v MJ Forbes (Inspector of Taxes) 1974 II ITR 614

Training grants and other contributions towards expenditure should normally be taxable. O’Cleirigh (Inspector of Taxes) v Jacobs International Ltd 1985 III ITR 165

In Tanfield v Carr 1999 STC (SCD) 213 exclusivity payment was held to be revenue and not capital.

Advance payments made to a company whose business consisted of the hiring of motor vehicles and related to periods after the sale of the company to a third party were part of the company’s profits in the accounting period in which the business was sold. Tapemaze Ltd v Melluish (HM Inspector of Taxes) 2000 STC 189

Able (UK) Ltd v Revenue & Customs Commissioners 2007 STC 1738 considered whether compensation received for losses and expenses arising out of the giving and withdrawal of a CPO notice to a taxpayer was income or capital in nature.

A Building Society lent money to borrowers who were not members of the company. It was held the company was liable to tax on its profi ts as it was not carrying on a building society business by lending exclusively to its members. Property Loan and Investment Company Ltd v Revenue Commissioners 1945 II ITR 25

The Tax Appeals Commissioner found that the VAT/PAYE write down in the course of an examinership process constituted a taxable receipt for corporation tax purposes. 14TACD2016

This appeal considered if prize money is taxable under Schedule D, Case II or Schedule D, Case III. 04TACD2020

This appeal considered whether a grant and/or the exercise of a right to subscribe for shares in a company gave rise to an income tax liability or was it a capital receipt outside the charge to income tax. 172TACD2020

Whether the receipt by the taxpayer of the Patronage Shares was a capital receipt and therefore outside the charge to income tax. Revenue v Henry Walsh [2022] IEHC 305