| 20/5/2012 |
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| Board of Special Commissioners - Cases |
| Case No. 1/65 |
Decided: 3 July, 1965 |
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Agreement reached between taxpayer and the Commissioner is strictly limited to matter under dispute - article 59, Income Tax Act, now article 38, Income Tax Management Act
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The Commissioner refused to entertain a request by appellant to reduce the amount of tax charged. He contended that the matter had been the subject of an agreement reached between the parties. The assessment was, therefore, final and binding in terms of article 59 of the Act and no appeal was possible from such agreed assessment.
The Board observed that appellant had originally objected to a source of income being considered to be chargeable to tax and had not contested the amount of tax charged. Indeed, in his correspondence, the Commissioner had informed appellant that he "cannot accept your contention that the payments made ... do not constitute taxable income." The Commissioner had proposed and appellant had solely accepted the reduction of the additional tax that had been charged in the light of taxpayer's omission to declare the income at the outset.
The Board ruled that the matter treated and agreed upon by the parties was the nature of and not the amount of tax charged. An agreement is entered into in good faith and it is an established fact that the extent of an agreement is limited to the offer made.
Upon giving this ruling the Board proceeded to consider the factual part of the merits of the case.
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