ECC 285/2000

This case involved whether it was possible for an optional sales tax registration to be dismissed.

Background

A claimant filed a case against the tax authority before the court requesting the dismissal of sales tax registration. The claimant said that the tax authority had registered him as a taxpayer for sales tax though the value of his transactions did not require registration.

The court ruled that the tax registration should be dismissed.

The tax authority appealed the ruling before the court of appeal. The court dismissed the appealed ruling and dismissed the case.

Decision

The tax authority appealed the ruling before the court of cassation and said in its grounds of appeal that the ruling had erred in the application of law because the court had established its ruling based on the argument that optional registration cannot be dismissed unless the commercial activity of the taxpayer has ceased although the relevant laws permitted the tax authority to dismiss the registration if it was either optional or obligatory.