An appeal by a tax inspector against a High Court decision that a Dunnes Stores company was entitled to deduct some £400,000 interest on a £6 million bank loan from profits liable to tax was dismissed by the Supreme Court yesterday.
The inspector brought the appeal against a ruling of the High Court in November 1999 on a case brought from the Circuit Court. A Circuit Court judge sought the opinion of the High Court on whether he was correct in holding that the Ringmahon Company was entitled to a deduction of £435,764. The High Court found he was correct.
Ringmahon, an unlimited company, was a wholly owned subsidiary of Ringmahon Holdings Ltd, the ordinary shares of which were held by members of the Dunne family.