LOLC Finance PLC vs The Commissioner General of Inland Revenue – CA TAX/0018/2019-2023

In the case between LOLC Finance PLC (Plaintiff) and The Commissioner General of Inland Revenue (Defendant), the court addressed whether gains derived from the sale of the pawning business (including brand and goodwill), gold investment, and treasury bonds should be assessed as capital gains not subject to tax or as trading profits/income taxable under section 3(a) of the Inland Revenue Act, No. 10 of 2006. It was held that the abolition of capital gains tax does not automatically render all gains non-taxable; instead, the nature and circumstances surrounding each transaction must be examined to determine their true character. The holding reaffirmed the established principle that the distinction between capital and trading income requires a facts-and-circumstances analysis, referencing bot