A recent Irish case, Hibernian Insurance Co Ltd v MacUimis, involved a claim by an investment company for abortive acquisition costs to be relieved as management expenses. The Irish Supreme Court has now (January 2000) upheld the decision of the High Court against the taxpayer.
A decision of an Irish court does not constitute a binding authority in the UK even where (as in this case) the relevant legislation is the same in all material respects. It may, however, be cited as a persuasive authority, in the same way as Commonwealth cases.
In practice, occasions have already arisen where Inspectors of Taxes have invoked the High Court decision to support their refusal of claims for management expenses. Presumably this will now become more common.
