clr/1989/1989_3A_293.pdf

(2)— On the factsofihis casethe Commissioner rightlychargedinterest onapplicant's 293 Ioannou v.Republic &Another

(1989)income. Taxation — Income Tax — Assessment of— Assessment raised, but not finally disposed under the provisions of the Taxes (Quantifying and Recovery) Laws 1963 asamendedby Law61/69— Thefinalassessment 5 should be made under the repealing Law, i.e. the Assessment and Collectionof Taxes Laws 1978-1979(4/78. 23/78and41/79),section 59. Recourse dismissed. No order as to costs. 10 Casesreferredto: Hadjikyriacos &Sons Ltd5 R.S.C.C. 22, 15 Antoniades andOthers v.Republic

(1979)3C.L.R. 641, Matsis v.RepubUc

(1969)3C.L.R. 245, Ionioes v.Republic

(1980)3 C.L.R. 1, 20 Rainbow v.Republic

(1984)3C.L.R. 846, Tryfonos v.Republic

(1984)3C.LM..

1. 25 Recourse. Recourse against the income tax assessments raised on applicantsfortheyearsofassessment1977-
2. 30 C A. Hadjioannou,fortheApplicant. Y.Lazarou,CounseloftheRepublicB,fortheRespondent. Cur.adv. vult. 35 A.LOIZOU,P.readthefollowingjudgment.Bythepresent recoursetheapplicant challengesthevalidityoftheassessments fortheyearsofassessment 1977to 1979(yearsofincome1976 to 1979)which were raised and determinedby the respondent 40 CommissionerofIncomeTax,-hereinafter tobereferredtoas theCommissioner, -undersection20

(5)oftheAssessmentand 294 3 C.L.R. Ioannou v.Republic & Another A.Loizou. P. Collection ofTaxes Laws 197Sto 1979. Before proceeding any further I may say here that I took over on the25th May. 1988,thehearing ofthisrecoursefrom a 5 colleague whoretired. Theapplicantwhocomesfrom Akakivillage,derivesincome from farming, pig breeding and the running of a rural taxi service. 10 Asprovidedbysection 13

(2)(b)oftheTaxes(Quantifying and Recovery) Law 1963(LawNo.53of 1963)as amended by Law No.61of 1969nowrepealedandreplacedbytheAssessment and Collection of Taxes Laws 1978to 1979.the Commissioner did 15 not accept the return of income submitted by the applicant on the 6th June. 1977, for the year 1976 declaring an income of £1008,and on the23rdJune, 1977,raisedhimself an assessment on £1813.The applicant through his Taxation Consultant Mr. Phanos lonidesobjectedtothisassessmentinwritingonthe 13th 20 July, 1977ontheground that it wasexcessive. In October 1977, the Commissioner discovered that the applicant had acquired assets in 1976 which could not be justified compared with his financial position as at 31st 25 December 1972, which was submitted by his Taxation Consultant on the 11th April 1974,andwith other information existing in his income tax file. The Commissioner then discharged the above mentioned assessment under objection and raised an additional assessment on the 27th October 1977, 30 assessing the applicant with an income of £7000 before deduction of special contribution payable. Asagainstthisassessmenttheapplicantthrough hisTaxation Consultant objectedbyhisletterdatedthe 10thNovember 1977, 35 (Appendix"B"). Following this objection the Taxation Consultant of the applicant informed the Commissioner by letter dated the 15th November 1977 that the applicant had acquired assets to the 40 value of£7450andthat heclaimedcapital allowances. The applicant in his return of income for the year 1976had 295 A. Loizou, P. Ioannou v.Republic &Another (1989.) declared that no books of accounts for ascertaining his income were kept and the Commissioner by his letter dated the 27th April. 1978. requested the applicant to submit a Statement of Assets and Liabilities as at 31st December, 1976 so that he wouldbeenabletoexamineboththeapplicant'sobjection tothe 5 above assessment and his liability to tax for the period 1st January 1973to 31st December 1976. In reply to the aforesaid letter the applicant's Taxation Consultant by his letter of the 17th May 1978. forwarded 10 vouchers in respect of capital expenditure incurred during 1976 and informed the Commissioner that the applicant's Statement of Assets and Liabilities as at 31st December 1977 would be submitted assoon ascompleted. Theapplicant, however, failed to submit the required Statement of Assets and Liabilities as at 15 31st December 1976,or as at 31st December 1977. During the ensuing period, on various dates assessments under section 13

(2)(b) of the Assessment and Collection of Taxes Laws 1978to 1979were raisedbytheCommissioner for 20 the years 1978, 1979/78 and 1979 (years of income 1977, 1978 and 1979) against which the applicant objected on grounds that they were excessive and that a Statement of Assets and Liabilities wouldbe forwarded in thenear future. 25 TheTaxation Consultant of the applicant byhisletter of the 20th November 1978 (Appendix C), objecting against the assessment for the year of assessment 1978 (year of income 1977) informed the Commissioner that the preparation of the applicant's Statement of Assets and Liabilities as at 31st 30 December 1976, was towards the end and that it would be submitted very soon. However, such a statement was not submitted as promised, or at any subsequent date, and so the Commissioner by his letter of the 20th September 1980, required the applicant as provided by section 20

(3)of the 35 Assessment and Collection of Taxes Laws 1978 to 1979, to submit his Statement of Assets and Liabilities as at 31st December for each of theyears 1974to 1979within one month from the 20th September

1. The applicant again failed to comply with this demand within the stipulated time but such 40 Statements for the years ended 31st December, 1972, 1976, 1977,1978and 1979weresubmittedbytheapplicant onthe2nd 296 3C.L.R. loannou v.Republic &Another A.Loizou, P. March
2. The officer dealing with the income tax affairs of the applicant requested the applicant and his Taxation Consultant 5 to call at his office on the 21st September
3. to discuss the points arising out of the examination of the above submitted statements of Assets and Liabilities. In response to the aforesaid request the applicant's Taxation 10 Consultant informed him over the telephone that they would call at his office within theweek following the21st September, 1981 and produce a statement ofthe applicant's stocks in trade prepared upon information suppliedbytheapplicant andincase of their failure to reach an agreement in respect of the amount 15 of the applicant's liabilitytotax for the period 1stJanuary 1974 to 31st December 1979.then theIncomeTax Office couldcarry out its own on the spot stock taking. Both the applicant andhisTaxation Consultant failed to call 20 at the Income Tax Office as promised and after repeated telephone callsbythe examining officer thev called on the 13th October
4. An agreement on the estimated total assessable income 25 amounting to £23,900 for the period 1st January 1973 to 31st December 1979,wasreached,butno agreement wasreachedon their claim for capital allowances on the ground that proper accounts to the satisfaction of the Commissioner and a computation showing the assessable object of the tax was not 30 produced as provided by section 51 of the Assessment and Collection ofTaxes Laws 1978to
5. The Commissioner decided then to raise additional assessments in accordance with the total assessable income as 35 computed andagreedbetween andheinformed the applicantof his decision by letter dated the 24th November, 1982 together with the relevant Notices of Assessment (Exhibit 10). The applicant's Taxation Consultant by his letter of the 8th December 1982,(Exhibit 11),objected to the said assessments, 40 claiming inter alia, that no capital allowances were granted to the applicant in respect of assets acquiredbyhim. 297 A. Loizou, P. loannou v.Republic & Another

(1989)On this point thefollowing is stated in paragraph 13ofthe opposition: "TheCommissioner after consideringthecontents ofthe letter (Exhibit 11), and taking into consideration the 5 following facts and reasons, decided to offer applicant concessionally to reduce thesaidtotal assessable incomeof applicant amounting to £23,900bya deduction of £4000in lieuof capital allowancessoastorelievetheapplicant from "harshtreatment"astheapplicantconsideredit:10 (a) As provided under section 51 of the Assessment and Collection ofTaxes Laws 1978to 1979properaccounts to Respondent's Commissioner's satisfaction and computation showing the assessable object of the tax 15 werenotproducedtohim. (b)Applicant had failed to produce to the Respondent Commissioner returns of income and the required Capital Statement as at 31.12.1976 in the appropriate 20 time which would inevitably contain points that would havebeenwithinhisimmediateandexclusiveknowledge which could be duly investigated by the Respondent Commissioner. Such points were the valuation and physical stock takings,living expenses, salaries paid or 25 payable to Applicant's wife for her alleged services rendered in Applicant's business and certain capital or revenue expenditure which were not supported by documentary evidence. Had Applicant produced the requiredCapitalStatementintheappropriatetimei.e.in 30 1977/78 and the question of capital allowances was discussed Applicant could have decided to keep proper accounts so as to quality for the grant of capital allowancesfor years thereafter. 35 The figures stated inthe Capital Statement submitted were estimated and this is evidenced owing to the fact that:(i)Applicant agreed to increase his valuation of the 40 stock in trade as at 31.12.79 from £8034 to £11,030.298 3C.L.R. loannou v.Republic & Another A.Loizou,P. (ii)The amount of£4070claimed assalariespayable to hiswifewasagreedtobereducedto £2800and 5 (iii) Forlivingexpensesfortheperiod 1.1.73to31.12.

1. Applicant reluctantly agreed to a sum of £9.500 alwaysclaimingthat hislivingexpenseswerelow." During a meeting between the applicant and his Taxation Consultant on the one part and the Officers examining the 10 applicant's liabilityto tax for thesaidperiod, on the other part, thedecisionto reducethetotal assessableincome of£23,900by £4.000 was communicated to them and the whole case was discussed at length but no agreement was reached. 15 The effect of this reduction of £4000, would reduce the applicant's liabilityto incometax andspecial contribution from £4356 to £
2. The applicant's Taxation Consultant by his letter dated the 31st March, 1983 (Exhibit 12),offered to pay £1500 in full and final settlement of the applicant's liability to 20 income tax and special contribution for the years under examination. This offer was not accepted by the Commissioner and he decidedto determine thesub-judice assessments (Exhibit 10)as 25 raised and communicated to the applicant on the 24th November
3. This decision was communicated to the applicant by letter dated the 13th July 1983, (Exhibit 13), together with the relevant Notices of Assessment. In fact they were those contained in his previous letter of the 24th 30 November
4. Before proceeding anyfurther itmaybe statedherethat the Commissioner abandoned and withdrew his preliminary objection to the effect that the letter of the 13th July 1983was 35 of a confirmatory nature of an earlier decision and that as a resulttherecoursewasout oftime. Section 2 of the Income Tax (Amendment) Law of 1979 (Law No.40of 1979)has repealed andsubstituted Section 6of 40 the Income Tax Laws 1961-1979 (Law No. 58 of 1961 as amended upto andincluding LawNo8of 1979)sothatthenew section 6provided asfollows:299 A. Loizou,P. loannou v.Republic &Another

(1989)"

1. Subject to the provisions of section
2. for the year of assessment 1979 and for every subsequent year of assessment, tax shall be charged,levied andcollectedupon thechargeable incomeof anyperson derived inthatyearof assessment." TheGreektext reads as follows: "6.Τηρουμένωντωνδιατάξεωντουάρθρου54διά τοφορολογικόν έτος 1979 καιδι' έκαστονεπόμενονφορολογι- 10 κόν έτος επιβάλλεται καιεισπράττεταιφόροςεπίτου φο­ ρολογητέου εισοδήματος παντός προσώπου όπερεκτήθη κατά τοφορολογικόντούτο έτος." Section 54 of the IncomeTax Laws as amendedby section 15 15of theaforesaid Law No.40of 1979reads asfollows:"
3. Notwithstandingtheprovisions of section 6 (a)the income of any person derived in 1978 other than 20 from emolumentsshallbesubject toseparate assessment for theyear of assessment 1979,which shall bebasedon such income for the year
4. In such cases however. the provision of section 41 of the Assessment and Collection ofTaxes Laws,regarding the collection of tax 25 shall notapply andthetax shall be payable by notmore than five equal annual instalments the first instalment being payable onthe 1st December,1979; (b)an individual who in 1978 derives income other than 30 from emoluments and in 1979 derives income from emoluments,shall be subject toseparate assessment for the year of assessment 1979 based on such incomes of 1978 and 1979,butthetax payable by suchperson shall consist of the part of the amount of tax which is in the 35 same ratio to thetotal amount of tax as the incomeof such person from sources otherthan emoluments is to thetotal amountof his income: Provided that the provisions of paragraph (a) shall not 40 apply where any person proves totheentiresatisfaction of the Commissioner that he has paid tax regularly since the 300 5 3 C.L.R. loannou v. Republic & Another A. Loizou. P. year of assessment 1941 andthereafter. In such a caseand provided thatthatperson derivesin 1978 incomegrater than the income of 1977,such person shallbe subject to separate assessment for the year of assessment 1979 based on such income oftheyear 1978,butthetax paidsuch person for the year of assessment 1978 shall be allowedas acredit against thetax so payable.'' The Greek text reads asfollows:10 "
5. Ανεξαρτήτως των διατάξεωντουάρθρου6 - 15 20 25 30 35 (α)το κατά το έτος 1978 κτηθέν άλλο ή εξ αποδοχών ει­ σόδημα προσώπου τινός υπόκειται εις κεχωρισμένην φορολογίαν δια το φορολογικόν έτος 1979 βασιίίομένηνεπίτουτοιούτουεισοδήματοςτουέτους
6. Εις τοιαύτας περιπτώσεις όμως ηπρόνοιατουάρθρου41 τωνπερί Βεβαιώσεως καιΕισπράξεως Φόρων Νόμων. ηαφορώσαεις τηνείσπραξιντουφόρου,δενθα εφαρμόζηται.ο δε φόρος θα είναι πληρωτέος εις ουχί περισσοτέρας των πέντε ίσων ετησίων δόσεων της πρώ­ της δόσεως ούσης πληρωτέας την Ιην Δεκεμβρίου.
7. (β) φυσικόν πρόσωπον το οποίον κτάται κατά το έτος 1978 εισόδημα άλλο ή εξ αποδοχών,κατά δε το έτος 1979 κτάται εισόδημαεξ αποδοχών,υπόκειται εις κε­ χωρισμένην φορολογίαν δια το φορολογικόν έτος 1979 βασιζομένην επίτων τοιούτων εισοδημάτων του 1978 και 1979 αλλ' ουπότουπροσώπουτούτουκατα­ βλητέος φόρος θασυνίσταται εις το μέρος του ποσού του φόρου το οποίον έχει τον αυτόν λόγον προς το ολικόν ποσόν του φόρουοίον καιτο ποσόν του εισο­ δήματος του προσώπου τούτου το προερχόμενον εκ πηγών άλλων ή εξ αποδοχών προς το ολικόν ποσόν του εισοδήματος αυτού: Νοείται ότι εις περίπτωσιν καθ' ην πρόσωπον τι ήθελεν αποδείξειπροςπλήρηικανοποίησιντουΕφόρουότικατέβα40 λεν ανελλιπώς φόρον απότου φορολογικού έτους 1941 και εντεύθεν,αιδιατάξειςτωνπαραγράφων(α) και(β) δενεφαρ­ μόζονται. Εντοιαύτηπεριπτώσει καιεφόσον τοπρόσωπον 301 A. Loizou, P. loannou v.Republic &Another

(1989)τούτοκέκτηταικατάτοέτος 1978 εισόδημαμεγαλύτερον του εισοδήματος του έτους 1977,το πρόσωποντούτο υπόκειται ειςκεχωρίσμένην φορολογίανδιάτοφορολογικόνέτος 1979 βασιζομένην επί του τοιούτουεισοδήματοςτου έτους 1978, αλλ' ουπότουπροσώπουτούτουκαταβληθείςφόροςδιάτο 5 φορολογικόν έτος 1978 εκπίπτεται υπό μορφήνπιστώσεων έναντιτουούτωπληρωτέου φόρου.'' Theeffect oftheabove amendmentswas tochangethebasis of assessment from thepreceding year basistothecurrentyear 10 basis. Untilthe enactment of Law No.40 of 1979 on the 11th May 1979,income,otherthanincomefrom emoluments,was assessed on the preceding year basis and income from emoluments was assessedonthecurrentvear basis. 15 The constitutionality of this method of differentiation of assessment was considered in the case of Hadjikyriacos & Sons Ltd 5 R.S.C.C. 22 and it was found that such differentiation was not arbitrary but based on reasonable considerations inview oftheintrinsicnatureofthetwosources 20 of income. Later,however, itwas thoughtthatanothermethod of computing incomeshouldbefollowed andin 1979 Law. No. 40 of 1979 was enacted,whereby it amended section 6 of the then existing Law so that all incomes whether derived from emoluments or otherwise should be assessed on the current 25 year basis. This,aswe have seen above,was doneby section2 of Law No.40 of 1979 which in the absence of section 15of Law No.40 of 1979 clearly would notgiveriseto question of unconstitutionality. The Problem, as it appears from the written address of learned counsel for the applicant is created 30 by section 15of Law No.40of 1979whichamendedsection54 of theincomeTax Laws. Thereason why theprovisions of section 15of Law No.40 of 1979 were introduced, which provisions are merely 35 transitional,was tocover cases sothatnoincomewould beleft untaxed because otherwise incomes which were derived from sources other than emoluments would be left untaxed for the year

1. 40 Learned counsel for the Commissioner hasgiven anumber of examples inordertomakehispointdear,which Ifind useful 302 3 C.L.R. loannou v. Republic &Another A. Loizou. P. to set out in this judgment. Suppose, he said, a person commenced business or started hisprofession in
2. In 197S he earns income but he does not pay tax despite the existence oftheobligation to paytax according tothe IncomeTax Laws. 5 because until then histax wascomputed on the preceding year basis. In 1979 had it not been for this amendment, he would have paid tax in 1979 on the basis of the income of 1978.but because of the enactment of this Law the basis of assessment changed and he would pay tax in 1979 on the basis of his 10 income in 1979.thus leaving the 1978 income untaxed, but in view of section 54 the 1978 income was covered, otherwise it would not have been covered and this would actually create a discrimination between persons deriving income from the same sources. 15 These two incomes up to 1979 could be treated separately because of the intrinsic nature of the two sources. It seems therefore that in order to avoid discrimination between people deriving income from the same sources, this section 54 was 20 enacted. And. it can be seen from the proviso to section 54, that if a person commenced business in 1974 and paid tax all along until 1978 then a different method again is used in computing hisincome. 25 In any event, by the aforesaid provisions there are not two assessments in respect of the same year for this person who startedbusiness asearlyas 1941.Another examplegiven isthat of somebody who commences his business or profession in
3. In 1971he pays tax for 1970,"in 1972 for 1971 and we 30 come to 1978 when he pays for
4. In 1979 normally he shouldhave paidfor 1978butbecause oftheamendment of the Lawbysection 2of LawNo.40of 1979hedoesnot payfor the income of
5. 35 It is because of section 54 that such a tax payer pays tax in respect of
6. So,itwouldhavebeen discriminatory between persons deriving incomefrom thesame sourcehaditnot been for section
7. A further example as to the taxability of two personshasbeengiven.A,whogetsemployment in 1978inthe 40 Government service,andB,whocommences business or starts a profession in
8. A, who gets employment in the Government Service pays tax immediately, i.e. in 1978 and in 303 A. Loizou, P. loannou v.Republic &Another

(1989)1979.B.whostarted businessin 197S doesnot paytax in197S for 1978andpaysin 1979for 1979.sohepaysonlyonceunless the provision of section 54.asamended bysection 15ofLaw No.40of 1979comesintoplay. Withtheaboveinminditcan safelybeconcludedthatsection54isawellbalancedsection to 5 cover all these cases and it isfurther clear that section 15of Law No. 40 of 1979 does not offend Article 28 of the Constitution. On the contrary such contravention possibly would arise 10 hadthissectionnotbeenenactedinthatitwouldleadtoleaving out from taxation theincomeof 1978forpersonswhoderived income otherwisethan from employment. Moreover I cannot agree with the submission of learned 15 counsel for theapplicant,thatbythisamendment ineffect one is askedto paytax twice in contravention of Article 24ofthe Constitution asbythisenactment apersonisonlyaskedtopay in the same year the taxes for two different years, i.e.for the year ofincome 1978andyearof income 1979.andbecause of 20 thatafacilityforthepaymentofthetaxesinquestionuptofive annualinstalmentsfrom the 1stDecember 1979isprovidedby section 54(a)of theLaw. From the very provisions of section 54 as amended by 25 section 15,itisclearthatthedifferentiation isbetween sources of income and not persons which differentiation has already been decidedthatisnotarbitrary.Hadjikyriacos (supra). (See also the case of Antoniades and Others v. TheRepublic

(1979)3C.L.R.641 at p.655.) 30 Inviewofthepresumptionofconstitutionalityofstatutesthe provisions of sections 2 and 15 of Law No. 40 of 1979 are presumed to be constitutional unless the applicant proves the contran'andthestandardofproof isthatofbeyondreasonable 35 doubt. See Matsis v. The Republic

(1969)3 C.L.R. 245; Antoniades andOthers v.TheRepublic

(1979)3C.L.R. 641 at p.655,andIonidesv.TheRepublic

(1980)3C.L.R. 1 atp. 8. 40 The provisions of section 51 of the Assessment and Collection of Taxes Laws 1978-1979 (4/78,23/78 and 41/79) 304 3 C.L.R. loannou A.Republic &Another A. Loizou, P. were explainedintworecent decisionsofthisCourt. (SeefSina Rainbow v.TheRepublic

(1984)3C.L.R. 846atpp.850. 851: Tryfonos v. The Republic

(1984)3 C.L.R. SS4 at pp. SS

1. SS7.) In these cases it was held that the Commissioner in 5 exercising his discretion under section 51 of the Law can have regard to the conduct of the tax-payer generally in connection with the discharge of his obligations under the Tax Laws and that ataxpayer who islessthan forthcoming in the declaration of his income and fails to keep records to substantiate 10 deductions from his taxable income can hardly expect the Commissioner to exercise his discretion under the aforesaid section in his favour. In our case it is an admitted fact that the applicant derived 15 income from three sources, i.e. farming, pig breeding and running of arural taxi service,and that hedidnot keep proper accounts. Whentheapplicant submitted areturn for theyearof assessment 1977 (year of income 1976) on the 6th June
2. he declared only an income of £1.008.-without disclosing that 20 he acquired assets in 1976 to the value of £7,450.-which fact was discovered by the Commissioner. Then we see that for three years the applicant was delaying to submit his statement of Assets and Liabilities despite repeated requests on behalf of the Commissioner andrepeated promises by the applicant and 25 his Taxation Consultant. But he raised the question of capital allowances after the Commissioner discovered the aforesaid acquisition of assets of £7.450.-which the applicant had a duty to disclose from the very beginning. 30 From the facts of the present case as outlined above, it can safely beconcludedthat thedelayinraisinganddetermining the sub judice assessments was due to the applicant's unreasonable default. Consequently the demand of interest under section 42

(2)oftheAssessment ofCollection ofTaxes Laws 1978-1979 35 was also reasonably open to the Commissioner. Although the assessment for the year of assessment 1977 was made when,the provisions ofTheTaxes (Quantifying and Recovery) Laws 1963asamendedby LawNo.61of 1969,were 40 in force, yet it wasnot finally disposed of till the datewhen the aforesaid Laws were repealed and replaced by the Assessment and Collection of Taxes Laws 1978 to 1979. Therefore, in 305 A. Loizou. P. loannou v.Republic & Another

(1989)accordancewiththeprovisionsofsection59oftheAssessment and Collection of Taxes Laws 197S to 1979, particularly subsections

(3)and

(4)thereof,anyfurther action in disposing finally the said assessment and collection of the tax thereon would be taken under the provisions of the Assessment and 5 Collection of Taxes Laws, 1978 to 1979. Thus the Commissioner in accordance with the provisions of section 42

(2)oftheAssessment andCollection ofTaxesLaws 1978to 1979and owing to the applicant's unreasonable default inthe delay in making theassessments for thesaidyears,demanded, 10 andrightlyso, the payment of interest at the rate of 6% per centum per annum from 1st December 1977, for the tax payableinrespect oftheassessmentfortheyearofassessment 1977 and at the rate of 9%per centum per annum from 1st December 197S and from 1st December 1979 for the tax 15 payablein respectoftheyearsofassessment 1978and1979/78 respectively and at 9% per centum per annum from 1stJuly 1980for tax payable in respect of theassessment for the year ofassessment 1979(vearofincome1979). 20 TheCommissioner'sdemandforinterestundersection42

(2)of theAssessment andCollection ofTaxesLaws 1978to 1979 doesnotleadtoretrospectivetaxationastheapplicanthadthe use of the money payable in respect of the taxes due for the years of assessment under recourse at their respective due 25 dates. Before concluding it may be repeated here what is saidin paragraph 22oftheOpposition: 30 "The 10%percentum increaseofthetaxassessedonthe incomeoftheyear 1979wasmadeinadvertentlybymistake and as a temporary assessment was not raised on the applicantinaccordancewiththeprovisionsofPartIVofthe Assessment and Collection of Taxes Laws 1978 to 1979 35 therefore the provisions of section 28

(1)of the aforesaid part cannot beinvoked in final ascertainment of the object of the tax. in the applicant's assessment for the year 1979 willbeamended accordingly." 40 In view of all the above the recourse fails subject to the undertaking contained in the paragraph just quoted, and is 306 3 C.L.R. loannou v.Republic & Another A.Loizou, P. hereby dismissed. Thesubjudicedecisionsareconfirmed butin the circumstances there willbeno order asto costs. 5 Recourse dismissed. No orderas tocosts. 307