Devine v McAteer [2008] NIQB 150 (18 December 2008)

Devine v McAteer [2008] NIQB 150 (18 December 2008)

The defendant, as the plaintiff's accountant and tax adviser, failed to take reasonable care to ensure that the plaintiff's investment qualified for EIS tax relief as she had been led to expect. The loss suffered was the amount of tax relief she could have claimed (£6,421). The defendant was not entitled to set off other successful transactions against this loss.

Citation
[2008] NIQB 150
Parties
Plaintiff: Mary Devine; Defendant: Daniel McAteer
Jurisdiction
Northern Ireland
Judgment Date
18 December 2008
Procedural Posture
Civil / Judgment After Trial
Outcome
Judgment for the plaintiff
Legal Topics
Enterprise Investment Scheme (eis), Accountant's Duty of Care, Damages for Loss of Tax Relief
Professional Negligence Tax Law Enterprise Investment Scheme (eis) Accountant's Duty of Care Damages for Loss of Tax Relief

Case Brief

Summary, issues, holding and outcome

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Parties

Mary Devine

Plaintiff

Daniel McAteer

Defendant

Procedural Posture

Civil / Judgment After Trial

Legal Issues

  1. 1 Whether the defendant, as the plaintiff's accountant and tax adviser, was negligent in failing to secure EIS tax relief for the plaintiff's investment.
  2. 2 Whether the plaintiff is entitled to damages for loss of tax relief and if so, the quantum of such damages.
  3. 3 Whether the defendant is entitled to set off other successful transactions against the plaintiff's loss.

Ratio Decidendi

The defendant, as the plaintiff's accountant and tax adviser, failed to take reasonable care to ensure that the plaintiff's investment qualified for EIS tax relief as she had been led to expect. The loss suffered was the amount of tax relief she could have claimed (£6,421). The defendant was not entitled to set off other successful transactions against this loss.

Court Disposition

Judgment for the plaintiff

Orders

  • Defendant to pay the plaintiff £6,421 for loss of tax relief.
  • Defendant to pay interest at 6% from 15 May 2003 to 18 December 2008, amounting to £4,623.12.