Joseph Elain Chinapoo et Al v The Board of Inland Revenue

• Jurisdiction: Trinidad & Tobago
• Judge: Barnes, C.,Burke, M.,Seemungal, M.
• Judgment Date: 17 December 1985
• Court: Tax Appeal Board (Trinidad and Tobago)
• Docket Number: E 1/1985
• Date: 17 December 1985

Tax Appeal Board

Barnes, C.; Burke, M.; Seemungal, M.

E 1/1985

Joseph Elain Chinapoo et al

and

The Board of Inland Revenue

Appearances:

George Tsoi-a-Sue for the appellants.

I Ramoo-Haynes for the respondent.

No case referred to.

Appeal against refusal to waiver a portion of interest payable on estate duties.

Revenue Law - Assessment of Taxes — Interest — Appeal against decision not to waive a portion of the interest payable under the Estate and Succession Duties Act — Delay in making assessment — Whether the accrued interest should have been waived where there was a delay in filing and submitting the Estate Duty affidavit — Whether the payment of duty was dependent on the Board of Inland Revenue or whether the procedure was for a self assessment procedure — Simple interest — Appeal dismissed — Finding that the accrued interest should not be waived — Finding that the payment of duty was not dependent on the Board of Inland Revenue — Sections 30 and 34(3) of the Estate and Succession Duties Act.

The appellants appealed against the decision of the respondent not to waive a portion of the interest payable under the Estate and Succession Duties Act, Chap.76:02. The appellants argued that by reason of the six year delay of the respondent in making the assessment, the respondent ought to waive a portion of the interest. The appellants contended that duty could only be paid from the date of ascertainment of duty and he relied on section 35 of the Act. They further argued that there was a departmental directive that in cases where there had been inordinate delay on the part of the respondent in making assessments that a portion of the interest should be waived and that this directive should be applied to this case.

The respondent argued that interest became payable within six months from the date of death and not from the date of assessment. Payment was not dependent upon an assessment of the respondent. Counsel for the respondent opined that the Act contemplated a self-assessment. It was further argued that there was not provision in law for the waiver of interest by reason of inordinate delay by the respondent in making an assessment. In any event the delay in assessing the estate duties was due in part by the failure of the appellants to furnish documents that they were requested to furnish.

Held:

• (i) the Ordinance contemplates a self-assessment and section 35 of the Ordinance relates to circumstances where the assessment by the respondent is different from the self-assessment; based on the provisions of the Ordinance payment of interest becomes due 6 months from the date of death and not on the date of assessment of duty;

• (ii) the law makes no provision for the waiver of interest in cases like this and the record revealed no departmental directive providing for the waiver of interest in cases where there is a delay in making an assessment.

Appeal dismissed and it is determined that the amount of duty and interest to be paid are in amounts of $6,198.73 and $3,011.02 respectively pursuant to s. 40(1) of the Estate and Succession Duties Act, Chap. 76:02

1 This is an appeal pursuant to section 40(1) of the Estate and Succession Duties Act, Chap. 76:02, hereinafter referred to as “the Act”

2 By notice of appeal filed on 6th March, 1981 the appellants appealed against a decision whereby the respondent refused to waive a portion of the interest payable on the Estate and Succession Duties assessed in the Estate of John Sylvester Chinapoo, Assessment No. 1254 of 1977.

3 The grounds of appeal were –

• (a) The Estate Duty affidavit and Account for the Commissioner in the above estate were filed before the 9th August, 1977, but the Estate and Succession Duties herein were not assessed until the 22nd September, 1983;

• (b) That by letter to the board dated the 22nd May, 1984, the appellants, who arc the persons named of beneficiaries under the will of the above-named Deceased, paid to the Board the sum of $6,198.73 (the amount of the said Estate and succession Duties) together with the further sum of $247.94 representing interest thereon for the period 22nd September, 1983 to the said 22nd May, 1984, with a request that the Board be good enough to waive the additional interest herein, having regard to the very long time this matter had been pending in the Estate Duty Department of the Board,

• (c) By letter dated the 11th February, 1985, the Board stated that it was unable to waive any portion of the interest due, but gave no reasons for the said refusal.

• (d) The appellants state that the Board took an inordinately long time to assess the above Estate and Succession Duties herein and that they should not in such circumstances be made to pay any additional interest herein.

4 Relevant facts leading up to the appeal are recorded in paragraphs 2 to 10 of the respondent's statement of case filed on 22nd October, 1981 as under –

2

On the 25th day of May 1977, the appellants filed an Estate Duty Affidavit and Account, with the respondent, with respect to the estate of the said Deceased John Sylvester Chinapoo. The value at the date of death was declared as $77,484.17. 3. By letter dated the 9th day of August, 1977 the respondent wrote to the appellants' Solicitor, requiring the appellants to submit documentary evidence in support of – (a) the application by Lillian Chinapoo, (b) the date of death of the said Deceased's father John Chinapoo Snr., and (c) the details of the said Deceased's share in the said estate. 4. By letter dated the 19th day of August, 1977 the appellants replied to the said letter of the 9th August, 1977 but failed to provide all the information requested. 5. By letter dated 2nd September, 1977, the respondent replied to the appellants' letter of the 19th August 1977 repeating its request for the following – (a) the death certificate of the deceased's father, the late John Chinapoo Snr. And (b) the statement showing the extent of the deceased's share in the estate of the said deceased's father John Chinapoo Snr. 6. The appellants refused to reply to the respondent's letter of 2nd September, 1977 and by letter dated the 19th day of October, 1978 some fourteen months later, the respondent wrote once more asking the appellants for information with a view to ascertaining what shares the deceased got from his parents, to which there was no reply. 7. Eventually, as no further information was forthcoming the respondent valued the Estate at $77,484.17 and assessed the estate to Estate Duty in the sum of $6,198.73 with interest at 6% from the 2nd May 1976 in the sum of $2,748.20 and notice to that effect was issued on the 22nd September, 1983. 8. By letter dated the 22nd day of May, 1984, and received on 6th June, 1984, the appellant paid the Estate Duty in the sum of $6,198.73 and interest in the sum of $247.94. He also asked that additional interest which became due six months after the death of the Deceased to the date of issue of the assessment notice, in the sum of $2,748.20 be waived on the ground that the matter had been pending a long time on account of the respondent's alleged tardiness. 9. In the said letter dated 22nd May, 1984 the appellants failed to acknowledge (a) that the Estate Duty Affidavit was filed some nineteen months after the date of the death of the Deceased and (b) that additional interest in the sum of $2,748.20 became due six months after the death of the Deceased and continued to run until the date of payment. 10. By...