| 22/5/2012 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 109 |
Decided: 05 March, 1984 |
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Participation In The Special Concession Exercise Of 1972. Liability Of The Heirs Of A Deceased Person To Do What He Should Have Done Under The Income Tax Act
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The taxpayer in this case died tragically a few months before the lapse of the time limit for participation in the Special Concession. As he had omitted to declare income in the past, he could have participated in the Concession. His heirs knew nothing about the matter, which only came to light when they later filed his Notice of Succession.
An assessment was raised upon them at the higher (Special Concession) rate. This was annulled by the Board of Special Commissioners but confirmed by the Court of Appeal. Though acknowledging that this created hardship, the Court held that the heirs of the deceased were fully responsible since they were "assumable for doing all such acts, matters and things as such person, if he were alive, would be liable to do under this Act." It did not matter that the heirs were actually completely in the dark. Clear fiscal legislation had to be applied irrespectively.
(Note: The decision repeatedly mentions that the law has been changed in this respect. Actually, however, the only change was to extend the relative provisions to cases where an additional assessment was necessary).
BSC Case No: 16/76
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