K V COMMISSIONER OF TAXES 1993 (1) ZLR 142 (S)

Flynote

Appeal — income tax — appeal involving questions of fact — approach by court in such cases

Revenue and public finance — income tax — gross income — source of income — employee of Zimbabwe firm being seconded to organization outside Zimbabwe but being paid an allowance by Zimbabwean firm — such allowance deemed to have been accrued from source in Zimbabwe and as such taxable

Headnote

Where an appeal from the Special Court for Income Tax Appeals or from the High Court on an income tax matter involves questions of fact, the Supreme Court will approach such matters in the normal way. While paying due regard to the findings of the Special Court on the facts and the credibility of witnesses, it is not necessarily bound by them.

The appellant, a chartered accountant, was employed by a firm in Zimbabwe. He and his wife were allowed by their firm to take part in a programme under which they would work for firms outside Zimbabwe for a period in order to gain experience which would, on his return, benefit both him and his Zimbabwean employer. While abroad he was paid by the firms he worked for but he was also paid his normal salary by his Zimbabwean employer. In addition, the Zimbabwean firm continued to pay his medical aid and pension contributions. His leave continued to accumulate while he was away.

Held, that the facts showed that he remained an employee of the firm in Zimbabwe. The money he was paid by the Zimbabwean firm was therefore deemed to have accrued to him from a source within Zimbabwe and had to be included in his gross income.

Judgment of SMITH J in K v Commissioner of Taxes 1990 (1) ZLR 191 (H) upheld.