D BANK LTD v ZIMBABWE REVENUE AUTHORITY 2015 (1) ZLR 176 (H)

2015 (1) ZLR p176

Flynote

Revenue and public finance – income tax – assessment – previous ruling on similar subject – when revenue authority bound by such ruling – ruling based on error of law – authority not bound

Revenue and public finance – income tax – gross income – deductions – expenditure for purpose of trade or production of income – distinction from capital expenditure – expenditure with enduring benefit – acquisition of computer software to run bank's accounts – expectation that system would be in use for some years – such expenditure constituting capital expenditure and not deductible from gross income

Revenue and public finance – income tax – gross income – gain arising from use of capital – distinction between fixed and floating capital – gain arising from floating capital constituting gain of revenue nature, not capital nature

Revenue and public finance – income tax – gross income – grant – distinction from loan – whether monies received by taxpayer constitute grant or loan – ostensible loan agreement – when can be treated as simulation