| 6/1/2009 |
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| Board of Special Commissioners - Cases |
| Case No. 5a/61 |
Decided: 8 November, 1961 |
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Commissioner's powers to raise additional assessments - article 53, Income Tax Act, now article 31, Income Tax Management Act
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Appellant was a shareholder in a limited liability company. Under the Malta full imputation system of corporate taxation, the appropriate part of the tax payable by the company on the profits out of which the dividends were distributed was set off as a credit against the taxpayer's own liability. It later emerged that the company had not paid its own tax and the credit given to the taxpayer was claimed back by way of additional assessments. Appellant claimed that no such additional assessments could be raised, as his full income had been charged to tax in the original assessments.
Basing its decision on that of the Court of Appeal (case no. 37), the Board held that the Commissioner's powers to raise additional assessments were extensive. Basically the only restrictions referred to the re-opening of matters that had been decided on appeal and to the rights given by statute barring. The right to raise additional assessments clearly covered also cases where the tax claimed would have been computed erroneously.
An appeal was entered before the Court from this decision (see case no. 46).
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