Visit UKSCJCPC/2023/0096
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TAX
Marie Henri Dominique Galea (Appellant) v The Assessment Review Committee and another (Respondents) (Mauritius)
Case summary
Case ID
JCPC/2023/0096
Jurisdiction
Mauritius
Parties
Appellant(s)
Marie Henri Dominique Galea
Respondent(s)
(1) Assessment Review Committee
(2) Director-General, Mauritius Revenue Authority
Issue
Was a Société, in which the appellant was a partner, engaged in a business within the meaning of the Income Tax Act 1995?
Facts
The appellant was a partner (associé) in Société Agricole de Mont Sur Mont (“SAMM”). SAMM was formed on 18 January 1993 and owned 2 plots of land in Mauritius at Baie du Cap. The land was used for breeding deer and monkeys and was a hunting ground during the deer hunting season. SAMM had 3 sources of income, being (i) contributions by paying hunters (this was not open to the public); (ii) sale of venison; and (iii) sale of live monkeys. SAMM had expenses such as salaries of employees and maintenance costs. It employed people to do maintenance works. SAMM had constantly been making losses from 1996/97 to 2006/07. Each associé bore the losses on a pro rata basis. In his income tax returns, the appellant treated income from SAMM as business income and its expenses as business expenses. He sought to deduct his share of the SAMM losses from his gross income. The second respondent, the Director General of the Mauritius Revenue Authority, conducted a review of the appellant’s tax affairs and concluded that SAMM was not carrying on a "business" within the meaning of the Income Tax Act 1995, but a hobby without a view to making a profit. Accordingly, the appellant was not entitled to deduct his share of the losses incurred by SAMM in his income tax returns. This decision was upheld by the first respondent, the Assessment Review Committee (the “Committee”). The appellant appealed to the Supreme Court of Mauritius, which dismissed his appeal. The appellant now appeals to the Judicial Committee of the Privy Council.
Date of issue
20 November 2023
Appeal
Justices
Hearing dates
Start date
26 February 2025
End date
26 February 2025
Watch hearings
26 February 2025 - Morning session
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Last updated 20 December 2024