ECC 437/1999

This case involved a dispute by a taxpayer on the tax assessment levied by the authorities. After an initial ruling that a tax form was invalid another assessment was issued by the tax authorities and the taxpayer tried to argue this was outside the statute of limitations. A key issue was whether interest on a bank loan should have been deducted from the assessment.

Background

The tax authority estimated the net profits of a pharmacy owned by the claimants but the claimants objected to the estimation. The case was referred the commission of tax appeal which decided to decrease the estimation. The claimants filed a case claiming that the two No. 19 forms were invalid.

The court ruled that the decision made by the commission of tax appeal should be dismissed and forms No. 19 were invalid.

The tax authority informed the claimants again with tax form No. 19 including an element of tax assessment. The claimants objected to the form and the commission of tax appeal decreased the estimation.

The claimants filed a new case before the tax court claiming that the tax authority had no right to claim the tax due to the statute of limitation.