Toufic Simon Karam V. Commissioner Of Income Tax (1948)

LawGlobal Hub Judgment Report – West African Court of Appeal

Income Tax—Income Tax Ordinance, section 7 (a)—” Accruing in” or” derived from”.

Facts

The appellant’s firm had goods delivered to its agent in Nigeria and sold them, the profits of the sale of £4,101 10s. 8d. remaining in Barclays Bank, Lagos. The appellant was assessed to income tax in respect of this sum.
The appellant appealed to the Supreme Court which confirmed the assessment.

Held

On appeal to the West African Court of Appeal (Lucie-Smith, C.J., dissenting), that statutes imposing pecuniary burdens must be construed strictly and therefore the profits having neither accrued in, been derived from, or been received in the Gold Coast within the meaning of section 7 (a) of the Income Tax Ordinance, they were not liable to Income Tax.

Appeal allowed.