Young Men’s Buddhist Association vs Commissioner General of Inland Revenue – sllr 2019 volume 3 page 204

In the case between Young Men’s Buddhist Association and the Commissioner General of Inland Revenue, the court addressed whether the appellant association, incorporated under a specific ordinance, qualifies as a “company” for purposes of Inland Revenue statutes and whether rental income received is exempt from tax or qualifies as business income. It was held that the appellant does not come within the statutory definition of a “company” as set out in sections 186 of the Inland Revenue Act, No. 38 of 2000 (as amended) and section 217 of Act No. 10 of 2006. The principle reaffirmed is that not all corporations meet the legislative definition of a company for tax purposes, and that rental income in these circumstances does not constitute business income. The decision relied on statutory inter