| 7/2/2012 |
HOME
FSS
Downloads
|
| Board of Special Commissioners - Cases |
| Case no. 21/53 |
Decided: 16 December, 1954 |
   |
|
Powers of the Board to fix profits at its discretion whilst ignoring the taxpayer's trade books
|
Appellant did not keep trade records of his business: he kept no details of his stock, of his daily sales, or any other record or ledger, except an incomplete cash book. The Board held that it was not possible to rely on the profit margins as declared by appellant.
The Board therefore had to establish appellant's appropriate gross profit itself. It considered that it was not always possible to realize the full profit because of stiff competition and other circumstances and, therefore, reduced the profit by a number of percentage points. The Board also noted an exceptional loss made on a certain consignment and a further reduction was made to cater for this.
The Board decision was appealed before the Court. The Court (case no. 13) confirmed the Board decision.
|
|
|
|
|