Guidelines for Transcript Admission in Case Stated Applications: Glynn & Ors v Revenue Commissioners [2021] IEHC 780

Introduction

The case of Glynn & Ors v Revenue Commissioners ([2021] IEHC 780) addresses a pivotal procedural issue in Irish tax law concerning the admissibility of transcripts in judicial reviews known as "cases stated." This High Court decision scrutinizes whether the Revenue Commissioners (hereafter referred to as "Revenue") could introduce transcripts of evidence when appealing a determination made by the Appeal Commissioners. The appellants, Niall Glynn, Colm McDonnell, and Kevin Sheehan—partners in Deloitte—challenged the Revenue's stance on the deductibility of voluntary partner retirement payments ("VPR payments"). The crux of the dispute centers on whether these VPR payments qualify as deductible business expenses under section 81(2) of the Taxes Consolidation Act (TCA) 1997, as amended.

Summary of the Judgment

In this judgment, Ms. Justice Stack considered Revenue’s application to admit the transcript of evidence presented before the Appeal Commissioners into the High Court hearing. Deloitte objected to this inclusion, arguing that the case stated should be a self-contained document outlining material facts, arguments, applicable case law, and legal questions without external evidence. After thorough analysis, the High Court refused Revenue's application, emphasizing that transcripts should only be included if there's a substantial challenge to primary findings of fact unsupported by evidence. Since Revenue's appeal primarily contested inferences drawn from those facts rather than the facts themselves, the transcript was deemed unnecessary.

Analysis

Precedents Cited

Justice Stack anchored her decision on several key precedents that define the scope and structure of a case stated:

• Mitchelstown Co-Op Society v. Comr. for Valuation [1989]: Established that a case stated should comprehensively present all necessary facts and determinations without relying on external documents.
• Emerson v. Hearty and Morgan [1946]: emphasized that evidence should not be included in the case stated unless essential to understanding primary facts.
• McGinley v. Criminal Assets Bureau [2001] and Dublin City Council v. Williams [2010]: Further clarified the boundaries regarding transcript inclusion, asserting they should not generally be part of the case stated.
• McNamara v. Revenue Commissioners [2021]: Highlighted that supporting documents must form part of the case stated when challenging primary findings of fact.
• Byrne v. Revenue Commissioners [2021]: Addressed scenarios where transcripts might be necessary, although Justice Stack found it did not constitute a broad authority for admitting transcripts.

Legal Reasoning

The High Court’s legal reasoning focused on the statutory framework established by section 949AP and newly inserted section 949AQ of the TCA 1997. It was determined that:

• A case stated must include the Appeal Commissioners' material findings of fact, arguments, case law, determination, reasons, and specific legal questions for the High Court's opinion.
• Transcripts of evidence are not inherently required unless the appeal challenges the primary findings of fact as being devoid of evidential support.
• Revenue's application was ambiguous in specifying whether it sought to challenge primary findings of fact or merely the inferences drawn from them.
• Given the lack of clear indication that primary facts were unsupported, the inclusion of transcripts was unwarranted.

Justice Stack underscored that for transcripts to be admitted, the appellant must clearly articulate that certain findings of fact were made without supporting evidence. Without such specificity, as in Revenue's case, the transcript should not be admitted.

Impact

This judgment clarifies the procedural boundaries for appeals by way of case stated, particularly regarding the inclusion of transcripts. Future appellants must ensure that any challenge to primary findings of fact is explicitly grounded in the absence of supporting evidence to warrant transcript admission. This decision reinforces the principle that case stated documents should be concise and focused on presenting the legal issues without extraneous evidence, thereby streamlining judicial reviews and preventing unnecessary procedural complications.

Complex Concepts Simplified

Case Stated

A "case stated" is a legal procedure where one court refers a specific legal question to a higher court for determination. It focuses narrowly on points of law rather than re-examining factual determinations.

Primary Findings of Fact

These are the fundamental factual conclusions drawn by a lower tribunal or commissioner based on evidence presented. They are distinguished from inferences or conclusions drawn from these facts.

VPR Payments

Voluntary Partner Retirement (VPR) payments are sums paid by a partnership to retiring partners. The legal contention is whether these payments are deductible as business expenses.

Section 81(2) TCA 1997

This section pertains to allowable business deductions, stipulating that expenses must be incurred wholly and exclusively for business purposes to be deductible.

Conclusion