| 29/8/2008 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 46 |
Decided on 9 February 1962 |
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Commissioner's Powers To Raise Additional Assessments
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Taxpayer was a shareholder in a company from which he received dividends. Under Malta's 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.
The taxpayer contended that no such additional assessments could be raised, as his full income had been charged in the original assessments. Both the Board and the Court disagreed. The Revenue's power of raising additional assessments were ample: basically the only prohibitions made were to prevent the re-opening of matters which had been decided on appeal and to protect the rights given by statute barring.
The right of raising additional assessments clearly covered also cases where the tax claimed had been erroneously computed. The Court confirmed its decision in cases nos 14 and 37 regarding the Commissioner's powers of raising additional assessments in all cases where assessments already raised did not levy the taxpayer's full liability.
BSC Case No: 5/61
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