Marie Henri Dominique Galea (Appellant) v The Assessment Review Committee and another (Respondents) (Mauritius)

Hearing listed

Case summary
Appeal
Change log

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.