Supreme Court reserves judgment in tax relief case

THE Supreme Court has reserved judgment on an appeal by two directors of a construction company against a decision that a scheme under which they received £600,000 in tax-free dividends was a tax avoidance scheme involving a misuse of export sales tax reliefs.

The appeal by John O’Flynn and Michael O’Flynn, with addresses at Kilcrea, Ovens, Co Cork, and their company, O’Flynn Construction Co Ltd (OFC), involves the Supreme Court considering for the first time the meaning of section 811 of the Taxes Consolidation Act, the general anti-avoidance provision of that act.

The two-day appeal concluded yesterday before the five-judge court, presided over by Mr Justice Nial Fennelly, who said the court was reserving its decision.