Income Tax Comptroller v Romeril [1966] JJ 711 (23 December 1966)

Income Tax Comptroller v Romeril [1966] JJ 711 (23 December 1966)

If property is acquired for resale, it becomes part of profit-making stock, and any profit realized on disposal or withdrawal from stock is taxable as income.

Citation
[1966] JJ 711
Parties
Applicant: Income Tax Comptroller; Respondent: Romeril
Jurisdiction
Jersey
Judgment Date
23 December 1966
Procedural Posture
Tax Appeal / Judgment
Outcome
appeal allowed
Legal Topics
Income Tax, Profits From Trade, Property Development, Taxation of Notional Profits
Tax Law Income Tax Profits From Trade Property Development Taxation of Notional Profits

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Parties

Income Tax Comptroller

Applicant

Romeril

Respondent

Procedural Posture

Tax Appeal / Judgment

Legal Issues

  1. 1 Whether property acquired for resale becomes part of profit-making stock for tax purposes
  2. 2 Whether profit on disposal or withdrawal of such property is taxable

Ratio Decidendi

If property is acquired for resale, it becomes part of profit-making stock, and any profit realized on disposal or withdrawal from stock is taxable as income.

Court Disposition

appeal allowed

Orders

  • Profit on withdrawal of property from stock is taxable