166 / 328
the present proceedings claiming that the son was a
trustee of the 40 acres holding them on trust for
him.
Held—That the father was not entitled to a transfer
of the land from the son. He had of necessity to
disclose in the proceedings that he had practised a
deceit on the public administration (of which act the
courts were bound to take notice even though the
son had not pleaded it. (Scott
v.
Brown, Doering,
McNab & Co. (1892), 2 Q.B. 724; 8 T.L.R. 755,
C.A.) and he could not use the process of the courts
to get the best of both worlds—to achieve his
fraudulent purpose and also to get his property back.
(Palaniappa Chettiar
v.
Arunasalam Chettiar (1962)
Appeal Cases page 294)
Solicitor Guaranteeing Client's ovetdraft and being made
liable thereon: deducion against profits for Income Tax.
Following a message that a client for whom they
had acted for many years, particularly in transfers of
property, needed an overdraft to complete the lease
of new showrooms, to pay a deposit on a house he
was purchasing and to provide funds for carrying
on his business, solicitors signed a guarantee of an
overdraft by the client's bank of up to £500. The
client subsequently went bankrupt and the solicitors
were required to pay £412 under the guarantee.
They sought to deduct that sum as a necessary
expense of their profession for income tax purposes.
On the hearing of their appeal against their assess
ment they called evidence that it was the practice of
their firm and of other firms of solicitors to guarantee
loans to enable clients to complete transactions, and
the General Commissioners ot Income Tax found
that the guarantee was given and the loss of £412 was
incurred in connection with and arising out of the
solicitors' practice and for the purposes of their
profession as solicitors, that they " and some other
solicitors are accustomed
to give guarantees in
favour of clients in certain circumstances usually
when the guarantee is required for what appears a
temporary purpose ", and that the £412 " was wholly
and exclusively expended for the purposes of " their
practice as solicitors. There was no finding that the
solicitors received any consideration for giving the
guarantee. They allowed the deduction. On appeal.
Held—The payment under guarantee was a proper
deduction in computing the solicitors' profits for
income tax purposes under Case II of Sch. D, s. 123
of the Income Tax Act, 1952, as money " wholly and
exclusively expended for the purposes " of their
profession within 5.137 GO °f tne Act °f J 95 2 > since
on the evidence the giving of guarantees for deposits
on houses and leases was a general or ordinary
activity of solicitors, and in law it was not necessary
to establish that a solicitor could not successfully
carry on his profession without giving
such
guarantees.
(Jennings
(Inspector of Taxes)
v.
Barfield & Barfield, 1962, 2 All England Law
Reports, page 957.)
EXAMINATION RESULTS
At the Preliminary Examination for intending
apprentices to solicitors held on the 4th and 5th days
of September the following candidates passed :—
Andrew G. Ellerker, Brian J. Magee, Marguerite
Hogan Magee, James A. Rogan.
4 candidates attended ; 4 passed.
At examinations held on the i4th September under
the Solicitors Act, 1954, the following candidates
passed :—
First Examination in Irish :
Niall Patrick Connolly,
Felicity M. Foley, Michael Gleeson, Cormac Patrick
Glynn, Francis J. Hanna, Michael J. A. Kelly,
William J. Montgomery, Oliver C. Mullen, Patrick
Harmon Murtagh, Edward Patrick McCarthy, Ann
K. Neilan, James F. O'Higgins, Anne O'Toole,
Mary A. R. Tormey.
17 Candidates attended ;
14 passed.
The Sean O hUadhaigh Memorial Prize for 1962
was awarded to James F. O'Higgins.
SecondExamination in Irish :
One candidate attended
the examination and failed to satisfy the examiners.
At the Book-keeping Examination for apprentices
to solicitors held on the i3th September the following
candidates passed :—
Passed with Merit:
i. David W. Prentice (B.A.,
B.Comm.), 2. Neil Matthews, 3. Michael G. Dickson,
4. Garrett P. Lombard, 5. James Monahan (B.C.L.),
6. Sylvester W. Riordan (B.A.)
Passed:
Henry Owen Comerford, Malachy F.
Concannon (B.A., B.Comm.), Patrick J. Connellan,
Thomas A. Dillon-Leetch
(B.C.L.), Denis M.
Murnaghan, Brendan A. J. Murrin (B.C.L.) Brian M.
McMahon, Thomas J. M. O'Donoghue, James G.
Orange (B.C.L., LL.B.), Martin J. Ruane (B.C.L.),
Norman T. J. Spendlove (M.A., B.A.I., Dip.Geog.).
23 candidates attended ;
17 passed.
At the First Law Examination for apprentices to
solicitors held on the 3rd and 4th days of Sej emb^
the following candidates passed :—
Passed with Merit:
i. Brian A. Carroll, 2. Denis J.
Casey, 3. John E. Gore-Grimes.
48