| 21/5/2012 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 165 |
Decided: 20th May, 1992 |
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ESTMATED ASSESSMENTS. TRADE RECORDS TO BE KEPT. DISCRETIONERY POWERS REGARDING ADDITIONAL TAX.
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The taxpayer was a company running a small laundry business. Trade records kept were not entirely satisfactory, and the auditors brought in when the tax legislation regarding company financial statements was changed, could not give a clear audit certificate for the years under appeal.
The Board nonetheless felt that the estimated assessments raised should be reduced and, crucially, reduced the additional tax payable to an amount which it fixed. Both parties appealed to the Court, the
Revenue particularly stressing that on matters concerning penal additional tax, the Commissioner had discretionary powers, although subject to the principles laid down in Case No: 57.
The Court rejected outright the appeals in so far as they concerned the quantum of the assessments. This was a point of fact to be determined solely by the Board, but it issued a warning that the law's requirements regarding trade books applied to all businesses irrespective of size. The facts of life, however, had always to be borne in mind.
As regards the penal additional tax, the Court ruled, for the first time but later followed in VAT appeals, that additional tax was tax like all other taxes raised in an assessment and subject to appeal in the same way. The Board had considered the facts of the case, and the Court was not prepared to question its appreciation thereof.
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