| 9/9/2010 |
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| Board of Special Commissioners - Cases |
| Case No. 1/50 |
Decided: 17 May, 1950 |
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Income earned during the year 1948 - article 2 and article 6 (now 10), Income Tax Act
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For about three years appellant had been receiving Lm1 from his brothers for ceding to them the operation of a pharmacy. In November 1948 he definitively transferred the goodwill of the pharmacy and all pertaining rights at a consideration. The Commissioner had charged him tax on the Lm320 (Lm1 daily up to November) to which he objected.
Appellant admitted that the said Lm320 were part of his income but these had been received during 1948 while the Income Tax Act came into force on 1 January 1949. He also referred to certain declarations made by the Minister of Finance which, according to him, meant that the 1948 income would serve only as a basis for calculating the income for 1949 but the income earned during the year 1948 itself would not be taxed.
The Board held that income for the year 1948 was taxable according to the express provisions of the law. Although tax is assessed during the year of assessment, the same tax is charged, levied and collected on the income for the year immediately preceding the year of assessment.
It is not necessary for the purposes of the law that income is earned again during the subsequent year.
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