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Obsah (4)Article 188Article 78Article 24Article 78w

1965 Jan.12 April20 (ZEKIA, P., VASSILIADES, TRIANTAFYLLIDES, MUNIR, DEMETRB PETROUCHRISTOU IN T H E M A T T E R O F ARTICLE 146 O F T H E CONSTITUTION, and THE REPUBLIC

CYPRUS THROUGHTHE COMMISSIONER

INCOME TAX JOSEPHIDES, JJ.] ' D E M E T R I S PETROU CHRISTOU, Applicant, and T H E REPUBLIC

CYPRUS, T H R O U G H T H E COMMISSIONER

INCOME TAX, Responden t. (Case No. 212/63). Administrative Law—Income Tax—The Taxes (Quantifying and Recovery) Law, 1963, (Law 53

1963J and the Constitution

Cyprus, Article 24.3—Provisions

Law 53

1963 do not amount to retrospective taxation nor is law contrary to Article 24.3

the Constitution—Income Tax Assessment made on Applicant under such Law in October, 1963, in respectofyear

assessment1958, validly made. Income Tax—The Income Tax Law Cap. 323, and the Coustitution

the Republic, Article 188.2—Law ceased to be in force by virtue

Article 188

.2—Liability to pay income tax already accrued under the Law not extinguished when such Law ceased to be in force, Constitutional Law—Constitution

The Republic, Articles, 24.3 and 188.2—Provisions

the Taxes (Quantifying and Recovery) Law, 1963 (Law 53

1963J do not amount to retrospective taxation—Income tax liability accrued under Cap. 323 not extinguished when such Law ceased to be in force. Construction

Statutes—Temporary Statutes—The Duties and Taxes (Continuation

Provisions) Law, i960, (Law 23

i960) and the Constitution

Cyprus, Article 188.2— Duration

the provisions

temporary statutes a matter

construction regard being had to the particular statute and the intention

legislature The Applicant was assessed by a notice

assessment dated the 7th October, 1963, to pay the sum

£591.750 as income tax in respect

the year

assessment 1958, 214 being the year

income 1957. The Income Tax Law (Cap. 323) which was in force in 1957 and 1958, having ceased to be in force by October, 1963, the assessment in question was made under the provisions

the Taxes (Quantifying and Recovery) Law, 1963, No. 53

1963 which came into operation on the 18th July, 1963. The three principal issues dealt with in this case are:

(1)Whether or not any liability

the Applicant-to pay income tax in respect

the year

assessment 1958 had accrued and was in existence at the time when the assessment, which is the subject-matter

this recourse, was made upon him on the 7th October, 1963; and

(2)If such a liability had in fact accrued and was still in existence on the 7th October, 1963, whether or not the provisions

Law 53/63 authorizes the making

the assessment the subject-matter

this recourse; and

(3)If such an assessment could have been made under Law 53/63, whether or not such assessment was validly made under the provisions

the said Law. Held, I. With regard to issue

(1). (a) In the case'

Vasos Constantinou Kyriakides and The Republic, 4 R.S.C.C. p. 109, the Supreme Constitutional Court held (at p. 115), inter alia, "that a proper interpretation and application

paragraph

(2)

Article 188

can only lead to the result that whatever liability to pay income tax may have accrued under Cap. 323 until the prescribed relevant date has not been extinguished". The Court has given careful consideration to the reasons for which the Supreme Constitutional Court came to that conclusion and to the submissions made by learned counsel on this point, and has come to the conclusion that it sees no reason for differing from the conclusions reached on this issue by the Supreme Constitutional Court in the Kyriakides Case. Vasos Constantinou Kyriakides and The Republic, 4 R.S. C.C. p. 109, followed: II. With regard to issue

(2): (a) Law 53/1963 contained valid statutory provision for assessing and recovering the income tax in question, 215 1965 Jan.12 April20 DEMETRIS PETROU CHRISTOU and THE REPUBLICOF CYPRUS THROUGHTHE COMMISSIONER

INCOME TAX 1965 Jan.12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBLIC

CYPRUS THROUGH THE COMMISSIONER

INCOME TAX which had already been imposed on the Applicant in re­ spect

the year

assessment 1958 by the relevant pro­ visions

Cap. 323, and in particular Part II thereof, and with which too the Applicant had already been charged under the said relevant provisions

Cap. 323 and which liability had already accrued upon the ceasing to be in force

Cap. 323. III. With regard to issue (τ,): The assessment in question was validly made in accor­ dance with the relevant provisions

Law 53/1963 and the Court sees no grounds for holding otherwise. / V. As regards costs : We award part

the Respondent's costs against the Ap­ plicant, which we fix at £10.Order: The assessment made on the Applicant in respect

the year 1958 has been validly made under the provisions

Law 53/63 and that this application cannot therefore succeed and is dismissed accordingly. Per JOSUPHIDES, J.: (In giving additional reasons for Judgment) I. The duration

the provisions

a temporary sta­ tute is a matter

construction, having regard to the parti­ cular statute and the intention

the legislature. //. The liability to pay tax under Cap. 323 accrued in the year when the income was earned irrespective

whe­ ther the Commissioner

Income Tax has served a notice

assessment on the tax-payer or not. III. T h e liability for the payment

income tax in res­ pect

the applicant accrued in the year when the income was earned, which was prior to the date when Cap. 323 ceased to be in force; and once the liability accrued, it was not extinguished when Cap. 323 ceased to be in force, by virtue

the provisions

Article 188

the Constitu­ tion, as I hold that, as a matter

construction, it was not the intention

the legislature to extinguish such liabilities as had already accrued in the past; but sim­ ply to clear the legislative field in those respects in whiqh the provisions

Article 78, paragraph 2, were designed to apply, viz.

the majority vote required in the passing

216 taxation and other laws by the House

Representatives. IV. The Income Tax Law, Cap. 323, having ceased to be in force as a whole on the 31st March, 1961, there was no legislation in force after that date authorizing the making

any assessment until the 18th July, 1963, when the Taxes (Quantifying and Recovery) Law, 1963 (Law 53

1963), came into operation. Reading that Law as a whole I am

the view that, once it is held that under the legislation then in force, the tax was imposed and the liability accrued prior to i960, as in the applicant's case, and that the liability has not been extinguished, the provisions

Law 53

1963 do not amount to retrospective taxation nor is that Law contrary to the provisions

Article 24

, paragraph 3,

the Constitution and I agree with the reasons given in the judgment

the Court delivered by my brother Munir J. V. The provisions

Law 53

1963 were a sufficient authority for the Commissioner to make the assessment complained

, and I would dismiss the application. Application dismissed. Cases referred to: Vasos Constantinou Kyriakides and The Republic, (4 R.S.C. C , p. 109 and p. 115). R.v. Wicks [1946] 2 All E.R. 529, at p. 532, per Lord Goddard, C.J. Steavenson v. Oliver

(1841), 8 M. &\V. 234; Stylianou v. Police (1962 C.L.R. p. 152); Miller's case
(1764), 1 Wm. BI. 451; Rex v. Elizabeth M' Kenzie and Another
(1820)Russ. & Ry 429; Spencer v. Hooton
(1920), 37 T.L.R. 280, Roche J.; Bennett v. Tatton
(1919)88 L.J.K.B. 313 at p. 314. Recourse. Recourse against the income tax assessment made on applicant imposing an amount

£591.750 mils income tax for the year

assessment 1958. 217 1965 Jan.12 April20 DEMETRIS PETROUCHRISTOU and THE REPUBLIC

CYPRUS THROUGHTHE COMMISSIONER

INCOME TAX 1965 Jan. 12 April 20 A. Triantafyllides for the applicant. M. Spanos, Counsel

the Republic, for the respondent. DEMETRIS PETROU CHRISTOU Cur. adv. vult. and T H E REPUBLIC

CYPRUS THROUGH T H E COMMISSIONER

INCOME TAX ZEKIA, P.: Thejudgment

the Court will be delivered by Mr. Justice Munir, and Mr. Justice Josephides will give additional reasons for judgment. MUNIR, J.: By this recourse, made under Article 146

the Constitution, the Applicant seeks a declaration "that assessment No. 96/AD/63 and/or the decision

Respondent to impose on Applicant the amount

£591.750 as income tax for the year

assessment 1958 is null and voidand

no effect whatsoever". It is common ground that the Applicant was assessed, by a notice

assessment dated the 7th October, 1963, to pay the sum

£591.750 as income tax in respect

the year

assessment 1958,being the year

income 1957. The Income Tax Law (Cap. 323) which was in force in 1957 and 1958, having ceased to bein force by October, 1963,the assessment in question was made under the provisions

the Taxes (Quantifying and Recovery) Law, 1963, Law No. 53

1963 (hereinafter referred to as "Law 53/63"), which came into operation on the 18th July, 1963. The three principal issues which call for a decision in this case are—

(1)whether or not any liability

the Applicant to pay income tax in respect

the year

assessment 1958 had accrued and was in existence at the time when the assessment, which is the subject-matter

this recourse, was made upon him on the 7th October, 1963; and

(2)if such a liability had in fact accrued and was still in existence on the 7th October, 1963, whether or not the provisions

Law 53/63 authorize the making

the assessment which is the subject-matter

this recourse; and

(3)if such an assessment could have been made under Law 53/63, whether or not such assessment was validly made under the provisions

the said Law. 218 With regard to issue

(1)above, counsel for Applicant submitted that no such liability

the Applicant to pay income tax in respect

the year

assessment 1958 had accrued after Cap. 323had ceased to be in force by virtue

the provisions

paragraph

(2)

Article 188

the Constitution. He invited the Court to reconsider the Interim Decision

the Supreme Constitutional Court

the 8th February, 1963, in the case

VasosConstantinou Kyriakidesandthe Republic, 4 R.S.C.C, p. 109 (hereinafter referred to as "the Kyriakides Case"). In the Kyriakides Case the Supreme Constitutional Court held (at p. 115), inter alia, "that a proper interpretation and application

paragraph

(2)

Article 188

can only lead to the result that whatever liability to pay income-tax may have accrued under Cap. 323 until the prescribed relevant date has not been extinguished". The Court has given careful consideration to the reasons for which the Supreme Constitutional Court came to that conclusion and to the submissions made by learned counsel on this point, and has come to the conclusion that it sees no reason for differing from the conclusions reached on this issue by the Supreme Constitutional Court in the Kyriakides Case. With regard to issue

(2)above, counsel for Applicant submitted that Law 53/1963 did not contain any charging provision corresponding to sections 5and 6of Cap. 323and drew the Court's attention to the difference in wording between section 13

Law 53/1963 and the corresponding section 37

Cap. 323. He pointed out that whereas section 37

(1)

Cap. 323 states that the "Commissioner shall proceed to assess every person chargeable with the tax ", section 13

(1)

Law 53/1963 states that the "Director shall proceed to assess every person on whose object

the tax has been imposed ". Counsel for Applicant submitted that the omission

any charging provision in Law 53/1963, chargingthe Applicant with the tax in question has resulted in a lacuna with the consequence that the assessment in question on the Applicant is invalid. The Court is

the opinion that once the liability to pay the tax in question has already accrued in accordance with the principle laid down in Kyriakides Case, then it must follow, for the very reason why such liability has accrued (namely, the existence in force at the time

such accruing 219 1965 Jan. 12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBLIC

CYPRUS THROUGH THE COMMISSIONER

INCOME TAX Munir, J. 1965 Jan. 12 April 20 DtMETRlS PETROU CHRISTOU and T H E REPUBLIC

CYPRUS THROUGH THF. COMMISSIONER

INCOME TAX Munir, J.

the relevant provisions

Cap. 323) that such tax had already been imposed and charged under the relevant provisions

Cap.323 at the time such liability accrued. It seems to the Court that the reason why provisions corresponding to sections 5 and 6

Cap.323 and indeed to the whole

part II

Cap. 323(which isentitled "IMPOSITION

TAX" and which also includes the said sections 5 and 6) have been omitted from Law 53/1963 is no doubt because Law 53/1963 does not purport to impose or charge a person with the liability to pay any tax but is merely intended and designed, as its title clearly indicates, to quantify an existing liability, already imposed and charged by some other law, by proceeding to assess the amount

the tax in question and to take steps for its recovery. The Court is, therefore,

the opinion that Law 53/1963 contained valid statutory provision for assessing and recovering the income tax in question, which had already been imposed on the Applicant in respect

the year

assessment 1958 by the relevant provisions

Cap. 323,and in particular Part II thereof, and with which too the Applicant had already been charged under the said relevant provisions

Cap. 323 and which liability had already accrued upon the ceasing to be in force

Cap. 323. With regard to issue

(3)above, the Court is satisfied that the assessment in question was validly made in accordance with the relevant provisions

Law 53/1963 and sees no grounds for holding otherwise. For all the reasons given above the Court is

the opinion that the assessment in question made on the Applicant in respect

the year 1958 has been validly made under the provisions

Law 53/63 and that this application cannot therefore succeed and is dismissed accordingly. The Court has not considered it necessary to deal with the merits

the assessment in question in view

the declaration made by counsel for Applicant on the 15th September, 1964, that the merits

the assessment are not disputed. Taking into account the circumstances

this Case, including the fact that one

the grounds on which the Application was based had already been decided, we award part

the Respondent's costs against the AppUcant, which we fix at £10.— 220 JOSEPHIDES, J.: This is a recourse against the income tax assessment made on the applicant on the 7th October, 1963 in respect

the year

assessment 1958 (year

income 1957) under the Taxes (Quantifying and Recovery) Law, 1963(No. 53

1963). The amount

income tax assessed on the applicant is £591.750 mils, and it is not in dispute. The applicant had in the past submitted completed returns for the year

assessment 1955, 1956 and 1957 but he failed to do so for the year 1958. The Commissioner

Income Tax proceeded to assess the applicant's chargeable income for the year

assessment 1958 on the 28th September, 1960, but that was subsequently discharged and eventually the assessment complained

was made on the 7th October, 1963. The main grounds on which the case was argued before us on behalf

the applicant were:

(1)that with the expiration

the Income Tax Law, Cap. 323, on the 31st December, 1960, all existing income tax liabilities under that Law were extinguished; and

(2)even if not extinguished, the Taxes (Quantifying and Recovery) Law, 1963, did not warrant or authorize the assessment complained

. On the first ground two questions fall for determination— (a) whether prior to the expiry

the Income Tax Law, Cap. 323, the liability for the payment

the income tax had accrued without service

notice

assessment; and ~(/r)~if-yes, was such liability extinguished with the expiry

that Law? These points were considered by the Supreme Constitutional Court in the case

Kyriakides and The Republic (Minister

Finance and Interior), 4 R.S:GG^109, in which it was held that by virtue

the provisions

the Income Tax Law, Cap. 323, which was in force at the material time, income tax must be deemed to have been imposed then, that the liability accrued and that it was not extinguished with the expiry

that Law. Applicant's counsel submitted that as the Income Tax 221 1965 Jan. 12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBLIC

CYPRUS THROUGH THE COMMISSIONER

INCOME TAX 1965 Jan.12 April 20 DEMETRIS PETROU CHRISTOU and T H E REPUBLIC

CYPRUS THROUGH THE COMMISSIONER

INCOME TAX Josephides, J. Law, Cap. 323, ceased to be in force on the 31st December, 1960, by virtue

the provisions

Article 188

, paragraph 2

the Constitution, all accrued liabilities have been extinguished, and that this is in accordance with the established principles governing the expiration

statutes as distinguished from the repeal

statutes. He accordingly submitted that the Supreme Constitutional Court in the Kyriakides'' case wrongly applied the principle

equality and equal contribution towards the public burdens safeguarded by Articles 24 and 28

the Constitution and that the Court erred in drawing a distinction between "expiration" and "not continue to be in force" appearing in Article 188

the Constitution. Article 188, paragraph 2

the Constitution, with which we are concerned reads as follows: "2. Save where otherwise provided in the Transitional Provisions

this Constitution no provision in any such law which is contrary to, or inconsistent with, any provision

this Constitution and no law which under Article 78 requires a separate majority shall so continue to be in force: "Provided that the laws relating to the municipalities may continue to be in force for a period

six months after the date

the coming into operation

this Constitution and any law imposing duties or taxes may continue to be in force until the 31st day

December, 1960". On the 31st December, 1960, the Duties or Taxes (Continuation

Provisions) Law, 1960 (No. 23

1960) was enacted, whereby the Income Tax Law, Cap. 323, continued to be in force until the 31st March, 1961. Applicant's counsel further submitted that as the Law was not repealed, the provisions

section 10

(2)

the Interpretation Law, did not apply to save any liability already accrued prior to the repeal

the Law. He conceded that the duration

the provisions

a law which has expired was a matter

construction and that the Court had to look to the intention

the legislature having regard to the enactment. As Law 23

1960was

a temporary nature, he said, it was a temporary statute and being a temporary statute the whole

the provisions

the Income Tax Law Cap. 323, expired 222 on the 31st March, 1961, at the latest. In support

his ^submissions counsel cited the case

R. v. Wicks 11946] 2 All E.R. 529. \ In the course

hisjudgment in that case Lord Goddard, C.J. said (at page 532): "This section, however, has no application to statutes which have expired, and the question must, therefore, remain one

construction whether the provisions as to expiry are such as to makeit impossible for a prosecution or other proceeding to be either instituted or brought to conviction, or whether, on a true construction

the Act, Parliament has provided that legal proceedings, whether

a civil or criminal character, can be prosecuted in relation to matters connected with the Act after it has expired". Lord Goddard in his judgment, inter alia, referred with approval to the leading authority

Steavenson v. Oliver

(1841), 8 M. & W. 234; L.J. Common Law, Volume 10, page 341, and quoted this extract (Wicks case, supra, at page 531): "There is a difference between temporary statutes and statutes which are repealed; the latter (except so far as they relate to transactions already completed under them) become as if they had never existed; but with respect to the former, the extent

the restrictions imposed, and the duration

the provisions, are matters

construction". "Temporary statutes" according to Craies on Statute Law (5th edition, page 61), "are those on the duration

which some limit is put by Parliament"; and (at page 376

the same book) "If an Act contains a proviso so that it is to continue in force only for a certain specified time, it is called a temporary act". What we have here to consider is the construction

the provisions

Article 188

, paragraph 2,

the Constitution and Law 23

1960. It is the duty

the Court to ascertain what was the intention

the framers

the Constitution and the legislature in enacting Law 23

1960. Was it the intention that income tax in respect

the years prior to 31st March, 1961, even if due, should not be collected from the persons concerned; or was it the intention

Article 188, 223 1965 Jan.

12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBLIC

CYPRUS THROUGH THE COMMISSIONER

INCOME TAX Josephides, J. 1965 Jan. 12 April 20 DEMETRIS PETROU CHRISTOU and T H E REPUBLIC

CYPRUS THROUGH T H E COMMISSIONER

INCOME TAX Josephides. J. paragraph 2, to clear the legislative field in those respects in whichtheprovisions

Article 78weredesigned to be applied; or was it both?

In considering this matter I think it would be useful to refer to English cases which may help us in reaching a conclusion one way or the other, though this would not necessarily mean that we are bound by such decisions. As we said in another case: "Undoubtedly decisions

the English, Scottish, and Irish Courts are not binding upon the Courts

the Republic

Cyprus, though entitled to the highest respect. 1am

the view that, as a general rule, our Court should as a matter

judicial comity follow decisions

the English Courts

Appeal on the construction

a statute, unless we are convinced that those decisions are wrong". (Stylianou v. Police 1962 C.L.R. 152). At Common Law and prior to the enactment

the Interpretation Act, 1889,section 38

(2),

fences committed against a statute while in force could not have been punished without a special clause to allow it: Miller's case

(1764), I Wm.BI. 451; English Reports, volume 96, page 259. In the case

Rex v. Elizabeth WKenzie and another

(1820)Russ. & Ry. 429; English Reports, volume 168,page 881, it was held that an

fence committed before the passing

a new Act but not tried till after, was not liable to be punished under either the former or the newAct. The prisoners in that case were tried in the year 1820 on an indictment charging them with feloniously stealing on the 11thJuly, 1820, twenty-three yards

lace, valued at £1.3.0., from a shop. The evidence in support

the indictment was clear, but the statute I Geo. IV c.117 which received the royal assent on the 25th July, 1820, having repealed the provisions

the Act which deprived persons convicted

stealing goods privately in a shop to the amount

five shillings in value,

the benefit

clergy, the learned Common Sergeant respited the judgment in order to take the opinion

the Judges, whether sentence

death could be passed on the prisoners by virtue

the previous statute which was in force at the date

the commission

the felony, or whether the prisoners should receive judgment as in cases

grand larceny, by virtue

the new Act. All Judges agreed that judgment could not be passed on the new Act which was prospective only, and that the prisoners must receive judgment as for a common larceny, 224 without reference to either statute. Next in chronological order comes the leading case

Steavenson v. Oliver (quoted above), decided in

  1. The case related to 6 Geo. IV c.133, section 4, which enacted that every person who held a commission as surgeon in the army should be entitled to practise as• an apothecary without having passed the usual examination. This Act was temporary, expiring on August 1, 1826; and it was contended that a person who under the Act was entitled to practise as an apothecary would lose his right after August 1,
  2. But tne Court held that such a person could not be so deprived

jhis right, and Lord Abinger, C.B. in givingjudgment said: \ '•'It is by no means a consequence

an Act

Parliament expiring that rights acquired under it should likewise expire. The Act provides that persons who hold such commissions should be entitled to practise as apothecaries, and we cannot engraft on the statute a new qualification limiting that enactment". Parke, B.in the course

hisjudgment said: "Then comes the question, whether the privilege given by the statute 6 Geo. 4, is one which continues, notwithstanding the expiration

the statute: that depends on the construction

the temporary enactment. There is a difference between temporary statutes and statutes which are repealed ; but with respect to the former, the extent

the restrictions imposed, and the duration

the provisions, are matters

construction". This is the passage referred to in the judgment

Lord Goddard, C.J. in the Wicks case

(1946), quoted above. In the case

Spencer v. Hooton

(1920), 37 T.L.R. 280, Roche J. held that he had no jurisdiction to hear appeals from Munition Tribunals in proceedings taken under the Wages (Temporary Regulation) Acts, 1918 and 1919, by reason

the Act giving him jurisdiction having expired in September, 1920, before the appeals came on for hearing. Roche, J. referred to thejudgment

Baron Parke, in Steavenson v. Oliver(supra)where he says that if an Act expires the duration

its provisions is a matter

construction.In Bennett v. Tatton

(1919)88 L.J.K.B. 313, at page 314, a statement in Maxwell on the Interpretation

Statutes, 225 1965 Jan. 12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBLIC

CYPRUS THROUGH T H E COMMISSIONER

INOCME TAX Josephides, J. 1965 Jan.12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBLIC

CYPRUS THROUGH THE COMMISSIONER

INCOME TAX Josephides, J. 5th edition, at page 671 to the following effect was approved: "where an Act expired or was repealed, it was formerly considered, in the absence

provision to the contrary, as if it had never existed, except as to matters and transactions past and closed. Where, therefore, a penal law was broken, the

fender could not be punished under it, if it expired before he was convicted, although the prosecution was begun while the Act was still in force". The cases

Steavenson

(1841)and Spencer
(1920)were considered and applied in the case

R. v. Wicks

(1946)quoted above. The net result

these authorities is that the duration

the provisions

a temporary statute is a matter

construction, having regard to the particular statute and the intention

the legislature. One thing is clear, that apart from statute, no

fence can be prosecuted or punished under a statute which has expired without any saving clause. But short

that, the authorities show that rights acquired under a statute are not lost or extinguished with the expiry

that statute. In the same way, considering the particular provisions

the Income Tax Law, Cap. 323, and the intention

the legislature having regard to Article 188, paragraph 2,

the Constitution, and the Income Tax Law itself, I take the view that—(a) it was not intended that liabilities already accrued would be extinguished at the end

December, 1960, or at the end

March, 1961,when laws imposing taxes ceased to "continue to be in force", if such liabilities had already accrued; and (b) that the intention was to clear the legislative field in respect

the majority vote required under Article 78, paragraph 2, in the passing

taxation and other laws by the House

Representatives. The next question which I have to consider is whether the income tax liability

the applicant had accrued prior to the time when the Income Tax Law, Cap. 323 ceased to be in force. Could such a liability accrue without any notice

assessment having been served on him prior to the expiration

the Law? Having given the matter my best consideration I have come to the conclusion that the income tax liability

applicant accrued before the expiry

the Law. I am confirmed in that opinion having regard to— 226 (ι) the express provisions

the Income Tax Law, Cap. 323; and * (ii) the language

another taxation law, that is to say, the Immovable Property Tax Law, Cap.322. As regards (/), in section 2

the Income Tax Law, Cap. 323 the expression "tax" is defined as "the income tax im­ posed by this Law". Part II

the Law is headed "Imposi­ tion

Tax", and section 5

(1)in that Part provides that "Tax (imposed by the Law) shall, subject to the provisions

this Law, be payable at the rate or rates specified hereafter for the year

assessment commencing on the first day

Janu­ ary, 1941, and for each subsequent year

assessment upon the income

any person accruing in, derived from, or received in the Colony ". Section 6 pro­ vides that tax shall be "charged, levied and collected for each year

assessment upon the chargeable income

any person for the year immediately preceding the year

assessment.. ..., 1 " . Section 23 provides: "There shall be levied and paid upon chargeable incomes tax at the rates and in accordance with the provisions set forth in the Second Schedule to this Law". Section 37 empowers the Commis­ sioner

Income Tax to assess every person chargeable with the tax as soon as may be after the expiration

the time allowed to such person for the delivery

his return; and subsection

(3)

section 37 provides that where a person has not delivered a return and the Commissioner is

the opi­ nion that such person is liable to pay tax, he may, "according to the best

his judgment, determine the amount

the chargeable incomeof such person and assess him accordingly" Finally, section 64 provides that notwithstanding anything contained in the Law (Cap. 323), tax "shall be assessed and chargedon all emoluments"

salaried persons for any year

assessment, and such tax shall, subject to Rules made under section 75, "be deducted by the person making the payment

the emoluments notwithstanding that when the payment is made no assessment has been made in respect

the emoluments ". The Rules made under section 75 provide, interalia, that in the case

an employee who is paid monthly the tax payable is deducted (by the employer) from his monthly emoluments in 12 equal monthly instalments, and in the case

an employee who is paid weekly the tax is deducted from his weekly emoluments in 227 1965 Jan.12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBUC

CYPRUS THROUGHTHE COMMISSIONER

INCOME TAX Josephides, J. 1965 Jan.12 April 20 DEMETRIS PETROU CHRISTOU and T H E REPUBLIC

CYPRUS THROUGH T H E COMMISSIONER

INCOME TAX Josephides, J. 52 equal weekly instalments, and paid by the employer to the Commissioner

Income Tax within 15days after theend

each month. Moreover, rule 11

(1)

the same Rules provides that "Income tax in respect

emoluments shall be assessed and charged by the Commissioner who shall serve a notice

assessment under section 41

the Law on every employee assessed by whom tax is payable or from whose emoluments any tax was deducted during the year

assess­ ment". If the tax payable under the assessment is less than the total tax deducted from the employee's emoluments in respect

the year the difference shall be repaid to (he employee; and if the tax payable under the assessment exceeds the total tax deducted from the employee's emolu­ ments in respect οΐ the year the Commissioner shall require the employee to pay the difference (rule 11

(2)and
(3)). To my mind, the combined effect

the aforesaid provi­ sions, including section 64, make it abundantly clear that the liability to pay tax under Cap. 323 accrued in the year when the income was earned irrespective

whether the Commis­ sioner

Income Tax has served a notice

assessment on the tax-payer or not. As regards (//"), a comparison

the provisions

the Income Tax Law, Cap. 323, with the provisions

the Im­ movable Property Tax Law, Cap. 322, likewise leads one to the conclusion, from the wording

the two statutes, that the income tax is deemed to have been imposed at the time when the income is earned and that the liability actually accrued. Section 3

the Immovable Property Tax Law provides that "on all immovable property there shall be raised, levied, collected and.paid annually a tax to be called the immovable property tax". Section 4 provides that immovable property tax shall be assessed upon the value

immovable property as registered or recorded in the books

the Land Registry, and that if such value is not so registered or recorded, the tax shall be assessed upon -the-value-

-such-property-as-determined-by-the Director-

Lands and Surveys. The provisions in this Law are almost identical with the provisions regarding the imposition, charging, levying, assessment and collection

income tax. In the result I come to the conclusion that the liability for the payment

income tax in respect

the applicant accrued in the year when the income was earned, v/hich was prior 228 to the date when Cap.323 ceased to be in force; and once the liability accrued, I am

the view that it was not extinguished when Cap. 323ceased to be in force, by virtue

the provisions

Article 188

the Constitution, as I hold that, as a matter

construction, it was not the intention

the legislature to extinguish such liabilities as had already accrued in the past; but simply to clear the legislative field in those respects in which the provisions

Article 78, paragraph 2, were designed to apply, viz.

the majority vote required in the passing

taxation and other laws by the House

Representatives. Needless to say that the provisions

Cap. 323 didlnot empower the imposition

income tax in respect

anylperiod after the 31st March, 1961. The Income Tax Law, Cap. 323, having ceased to be in force as a whole on the 31st March, 1961, there was no legislation in force after that date authorizing the making

any assessment until the 18th July, 1963, when the Taxes (Quantifying and Recovery) Law, 1963 (Law 53

1963), came into operation. Reading that Law as a whole I am

the view that, once it is held that under the legislation then in force, the tax was imposed and the liability accrued prior to 1960, as in the applicant's case, and that the liability has not been extinguished, the provisions

Law 53

1963 do not amount to retrospective taxation nor is that Law contrary to the provisions

Article 24

, paragraph 3,

the Constitution and I agree with the reasons given in the judgment

the Court delivered by my brother Munir J. I am, therefore,

the view that the provisions

Law 53

1963 were a sufficient authority for the Commissioner to make the assessment complained

, and 1 would dismiss the application. Application dismissed. Applicant to pay part

Respondent's costs whichare fixed at £10.— 229 1965 Jan.12 April 20 DEMETRIS PETROU CHRISTOU and THE REPUBLIC

CYPRUS THROUGH T H E COMMISSIONER

INCOME TAX Josephides, J.

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AI explanation based on the official legal text. Indicative, not a substitute for legal advice.