The Gazette 1961 - 64

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 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 Hogan Magee, James A. Rogan. 4 candidates attended ; 4 passed.