| 8/2/2012 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 29 |
Decided on 5th December 1959. |
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Procedure To Be Followed By The Commissioner Of Inland Revenue On The Receipt Of A Valid Notice Of Objection
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The appellant had filed a notice of objection against estimated assessments and the question was to what extent the taxpayer had the right to insist upon direct negotiations with the Commissioner Of Inland Revenue in order to attempt to reach an agreement.
The Court held that the law only required the Commissioner to review the assessment when an objection has been filed. Moreover, the objection must state the precise grounds of the objection to the assessment. In actual fact, the taxpayer had spoken to the Commissioner during the objection stage. The Commissioner had then charged another officer (not the original assessor) to review matters, mostly because the department had been of the opinion that the taxpayer's books were unsatisfactory. No fresh correspondence had been sent to the taxpayer, nor had the second officer asked the taxpayer to call upon him or the Commissioner. During the hearing of the case before the Court, yet a third departmental officer had been asked to review the books without letting himself be influenced by what had went on previously. This had been done, and the taxpayer had discussed the matter with the third officer. But obviously no satisfactory conclusion had been reached.
The Court held that it was abundantly clear that the taxpayer had had more than enough chance to put his point of view before the department and that it would be sheer waste of time to require the whole process to be gone over again. The Commissioner had carried out the obligations imposed upon him by the Act during the objection stage, and the taxpayer had no right to require how and to what extent these obligations were to be met.
The appeal was therefore rejected.
BSC Case No: 42/58.
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