| 6/1/2009 |
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| Board of Special Commissioners - Cases |
| Case no. 8/54 |
Decided: 28 July, 1954 |
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Appellant, who was a trader, was considered to be also a trader in immovable property - articles 5(1)(a), now 4(1)(a), Income Tax Act
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Appellant's trade consisted in the wholesale and retail of draperies. On several occasions, however, over a period of five years, he had also purchased and resold immovable property. One particular transaction concerned an immovable which, he said, had been purchased for his daughter. For a number of months appellant had leased it out but an opportunity arose to sell at a good price. The Commissioner considered the property to have been purchased with the intention of profit-making by re-sale, as appellant was a trader in immovables as well.
Appellant maintained that he was not a trader in immovable and had, on all occasions, been forced to sell.
The Board held that since appellant was a trader it is presumed that purchases are made with the intention of trading; appellant had not proved the contrary. Although his main trade consisted in the wholesale and retail of draperies, it was known that a trader in immovables could have other lines of business. The reasons brought forward by appellant for re-selling his immovables over those five years were not convincing: in fact he had always sold at a profit. The main purpose of appellant, when he had purchased the immovable property in question, does not seem to have been the provision of a future residence for his daughter.
Appellant appealed from this decision before the Court. The Court (case no. 12) confirmed the Board's decision.
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