| 4/2/2012 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 37 |
Decided on 9 November 1960 |
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Raising Of Additional Assessments By The Revenue
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The taxpayer had been assessed as a "non resident" in the original assessments. The Commissioner however later raised additional assessments taxing him as a resident (thus bringing to tax income which had previously not been assessed, but granting personal deductions). Taxpayer claimed that the Revenue could only raise assessments when a person has either not been assessed or assessed at a lesser amount than that which ought to have been charged. The contention was that the residence status of a taxpayer could not be changed once an assessment had been raised.
Both the Board and the Court disagreed with the taxpayer. The law empowered the Commissioner to raise assessments and additional assessments when, for whatever reason, he believes that a taxpayer has not been assessed or has not assessed at the correct amount due by him. The only limiting factor was possible statute barring, which was not the case here. The Court gave various examples as to when an additional assessment could be raised, and included with the examples the present issue, namely where a change was deemed necessary in the residence status of the taxpayer.
BSC Case No: 2/60
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