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\rsid2564687\rsid3636562\rsid3810409\rsid4740475\rsid5795855\rsid6716315\rsid6890230\rsid8654874\rsid8862297\rsid10175753\rsid10289190}{\*\generator Microsoft Word 11.0.5604;}{\info{\author blake_r}{\operator hamilton_l} {\creatim\yr2010\mo6\dy1\hr14\min58}{\revtim\yr2011\mo9\dy29\hr13\min16}{\version9}{\edmins194}{\nofpages4}{\nofwords1480}{\nofchars8438}{\*\company scims}{\nofcharsws9899}{\vern24689}}\paperw11906\paperh16838\margl1440\margr1440 \widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\subfontbysize\hyphcaps0\formshade\horzdoc\dghspace120\dgvspace120\dghorigin1701\dgvorigin1984\dghshow0\dgvshow3 \jcompress\viewkind4\viewscale150\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\rsidroot10289190 \fet0\sectd \linex0\sectdefaultcl\sftnbj {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}} {\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}}{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (} {\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 IN THE SUPREME COURT OF FIJI \par }{\b\caps\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid3810409 Court of Review \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Review}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 No.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 6 .of}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 1986 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Between: \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 RAMESH SAMJI \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Appellant \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid8862297\charrsid6890230 A}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 nd}{ \fs24\lang2057\langfe1033\langnp2057\insrsid8862297 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 COMMISSIONER OF INLAND}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 }{ \b\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 REVENUE \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Respondent \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par Mr. F.G. Keil for the Appellant. \par Mr. M.J. Scott & Mrs. Sharma for the Respondent. \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid8862297 JUDGMENT \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par Ramesh Samji is the son of Samji Jadavji some time storekeeper of Nadi town. He was born in 1944 and went to India with his parents in 1948. There his father established a small clothing shop at Rajkot Bombay. He returned in 1965 and his uncle Manji as hi s father's attorney transferred to him his father's two lots of Vadawa subdivision, then contained in one Native Lease No. 7190, although he was as yet not quite 21 years of age}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 .}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 There is no evidence as to how he came, but when he got to}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Fiji he had himself issued with a Fiji passport. He left}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Fiji in March 1966, and ret}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 urned to Bombay in that same month.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 He came again to Fiji in August, 1978 by which time he}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 had}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 a}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 new}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Fiji }{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 passport. He}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 was accompanied}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 this}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 time by his wife and daughter, both of whom were born in India}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 , }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 but}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 had}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 } {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Fiji}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 passports,}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 but}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 he}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 did}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 not} {\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 bring his son.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 He said that the son had examinations in}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 June in India an}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 d}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 was to follow later. }{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 In the event he stayed in India.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 He also had a Fiji passport. \par \par The taxpayer said in evidence that he came to Fiji to start his own business in the premises which he had bought from his father and which were occupied by his uncle}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Manji. I would mention here that when he bought the lease there were two buildings upon it, one a concrete building occupied for both bu siness and private purposes by his uncle Manji who was conducting business as Samji Jadavji & Co., and one a wood and iron building. The taxpayer told the Court that he replaced the wood and iron building in 1972 with a concrete building containing four s hops and offices: when he got here}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 in 1978 he found that Manji refused to}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 vacate the premises he occupied, and had further, used the taxpayer's powers of attorney granted to him in 1965 and 1973 to grant himself and his firm a ten year tenancy from 1976 wit h a right of renewal for a further ten years. The taxpayer said that he took counsel with his other relatives in Nadi and as a result in April 1979 advertised the whole property for sale, intending however, to sell only the building occupied by Manji. Thi s would necessitate a further subdivision of the land. He accepted an offer from Karsanji, who also gave evidence, who agreed to give $200,000 for}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 that part of the property occupied by Manji. The agreement between the taxpayer and Karsanji was at this stage oral only, and nothing was put on paper until 1981 when Karsanji came}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 to India and was given an option in writing to buy the}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 property. The taxpayer had returned to India in August 1979, and has not been to Fiji since until he came t}{\fs24\lang2057\langfe1033\langnp2057\insrsid1966711 o give evidence in this appeal.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 \par Am}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 ong the terms upon which Karsanji bought the property were tha}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 t taxpayer was to subdivide the}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 lease, and also to get Manji}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 and his }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 family out and give}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 h}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 im vacant}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 possession of the building.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 The taxpayer was }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 not able to do this}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 until}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 he had engaged}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 in}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 costly litigation; and it was not until March 1985 that the transfer to Kars}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 anji's company was executed. A }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 deposit of $20,000 had been paid in 1981}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 when the option agreement was signed, and the balance of $180,000 in 1985. The Commissione r of Inland Revenue took}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 the view that at that time the taxpayer was normally residing out of Fiji and he wished to tax him under section 11(e) of the Income Tax Act. Section 11 starts off by a quite ample definition of 'total income' and then goes on with a proviso, wh}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 ich begins 'Provided that, with}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 out in any way affecting the generality of this section total income for the purpose of this act shall include: (and there follow twenty eight specific matters) of which (e) is as follows:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 "In the case of a per son residing or having his head office or principal place of business outside Fiji but carrying on business in Fiji, either directly or through or in the name of any other person, the net profit or gain arising from the business of such person in Fiji." \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 There is nothing abnormal in that. But now}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 comes the sting. \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4740475 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 "Provided that any person normally residing outside Fiji who engages in the sale or other disposition either directly or by the sale of options to purchase or by any other means whatsoever of any land in Fiji or any estate or interest in any such land shall be deemed to be carrying on business in Fiji,}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 and any profit or gain derived from the carry}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 i}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 ng on or carrying out of any undertaking or scheme connected with the disposition either directly or indirectly of any land in Fiji}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 or any estate or interest in any such land, including schemes involving the interposition of a company, entered into or devised for the purpose of making a profit shall be deemed to be total income for the purpose of this Act." \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par The taxpayer contends that he is normally residing in Fiji. There is authority to shew that persons sometimes absent from Britain and even residing out of}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Britain have been held for the purposes of taxation to be 'ordinarily resident' in England. Here the converse is t}{\fs24\lang2057\langfe1033\langnp2057\insrsid2390710 o}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 be shewn. The word 'normally' in the Fiji Act has been held to correspond with the term 'ordinarily' used in the English legislation see }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 Weller v. Commissioner of Inland}{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid2564687 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 Revenue }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 (1981) in the Fiji Court of Appeal. I am indebted to counsel for the citation of all the cases bearing in the matter, viz. }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 Levene v. I.R.C.}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 (1928) A.C. 217:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 97 LJKB 377}{ \fs24\lang2057\langfe1033\langnp2057\insrsid2564687 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 I.R.C. v. Lysaght }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 (1928) A.C. 234: 97 LJKB 385}{\fs24\lang2057\langfe1033\langnp2057\insrsid2564687 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 Nilish Shah v. Barnet London B.C.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 and other appeals }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 (1983) 2 A.C. 309: 2 W.L.R. 16: 1 A.E.R. 226}{\fs24\lang2057\langfe1033\langnp2057\insrsid2564687 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 Eastleigh B.C. v. Betts }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 (1983) }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid5795855 2 A.E.R. 1111:}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 2 A.C. 613}{\fs24\lang2057\langfe1033\langnp2057\insrsid2564687 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 }{ \fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 Reed v. Clark }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 (1985) 3 W.L.R. 142: }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 F.C.T. v. Pechey}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 (1975) 5 A.T.R. 322: }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid2564687 Weller v. Commissioner of Inland Revenue}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 No. 75 of 1981 in the Fiji Court of Appeal.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 From these it seems clear that the English term 'ordinarily resident' is not a term of art and that the two words must be construed as bearing their normal meaning.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 In }{\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid10175753 Levenes' }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 case Viscount Cave L.C. said}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 :-}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4740475 {\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 I think that [ordinary residence] connotes residence in a place with some degree of continuity and apart from accidental or temporary absences.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 In }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid10175753 Lysaght's}{\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid4740475 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 case Viscount Sumner said: \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4740475 {\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 I think the converse to 'ordinarily' is 'extraordinarily' and that part of the regular order of a man's life, adopted voluntarily and for settled purposes, is not extraordinary.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4740475 {\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 In }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid10175753 Nilish Shah's}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 case Lord}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Scarman, delivering the judgment of the House of Lords adopted the words of Lord Denning M.R. in the Court of Appeal (1962) 1 A.E.R. 698, 704; 2 Q.B. 720}{\fs24\lang2057\langfe1033\langnp2057\insrsid10175753 :}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 2 W.L.R. 474, 482.}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4740475 {\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 The words 'ordinarily resident' means that a 'person must be habitually and normally resident here' (that is, in England) 'apart from temporary or occasional absences of long or short duration.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par So that if }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 I}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 apply this to section 11(e) the taxpayer, to be normally residing outside Fiji, would be habitually and}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 normally residing in Rajkot. Here we have a taxpayer who derived all his income from Fiji and has done since 1965. He was born in Fiji and he and all his family hold Fiji pass ports. In 1965 he was resident in Fiji for the best part of at least seven months. In 1978 he came}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 t}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 o Fiji}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 with his wife and daughter intending to remain here and commence business. After a year's s}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4740475 tay he returned to India. Durin}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 g his stay he arranged to s ell part of his property. He has remained resident in India ever since. In my view, although it seems rather hard, he is habitually and normally resident outside Fiji and if he engages in business, becomes subject to the provisions of section 11(e).}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 The question is, can it be said that the taxpayer has engaged in the sale of land in Fiji. In }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid10175753 Weller's }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 case the Fiji Court}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 of Appeal held that although Weller sold his house he had not 'engaged' in the sale of land, but the Court was careful to say that it should not require a plurality of dealings to constitute 'engaging'. The Court said:}{ \fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 -}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 \par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid4740475 {\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 As has been so often said, a word must be construed in the context in which it is used. To engage in the selling of land means more than to decide to sell and thereafter co mplete the transaction in a straightforward way. It could mean devoting some substantial time to achieving and perfecting a sale.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 "}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 Now the transaction in which the taxpayer took part involved first an application for subdivision of lease 7190 into two lot s, then advertising for sale in two daily newspapers, then consideration of several replies and determination to accept Karsanji's offer. Taxpayer advertised both lots comprised in Native Lease No. 7190 and since Karsanji was interested only in the main s hop,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 a subdivision was necessary. A subdivision had already been applied for in February, although the advertisements did not appear until April. By February 1981 the sub}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230\charrsid6890230 -}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 division had proceeded }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 sufficiently to warrant Karsanj}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 i}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 having his solicitors,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6890230 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 who were also the taxpayer's solicitors, prepare an option to sell and taking it with him to India where he and the taxpayer executed it. It was provided that it could be exercised by 30th October 1982 and was subject to the vendor giving vacant-possessio n \par \par Karsanji duly exercised his option as provided on 28th October 1982, but took care to reserve the necessity for payment until he was given}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 vacant possession. In the }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 event that necessity did not }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 arise until the taxpayer had}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 taken unsuccessful actions in }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 the Supreme Court and Court}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 of Appeal, and had later been}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 able to get an order for}{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 possession. That was the end }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 of 1984 and the property}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{ \fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 was eventually transferred to}{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid6890230 Karsanji in March 1985.}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4740475 }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 All this must be considered to be engaging in sale, and it seems to me that the requirements of the section are complied with. Hence the taxpayer is deemed to be carrying on business in Fiji, and the taxpayer's appeal must be dismissed. He will have to pay the costs of the appeal}{ \fs24\lang2057\langfe1033\langnp2057\insrsid4740475 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 \par \par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid4740475 {\b\caps\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid4740475 (K.A. Stuart)}{\b\caps\fs24\lang2057\langfe1033\langnp2057\insrsid4740475\charrsid4740475 \par }{\b\caps\fs24\ul\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid10175753 Court of Review \par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6890230 {\fs24\lang2057\langfe1033\langnp2057\insrsid4740475 \par }{\fs24\lang2057\langfe1033\langnp2057\insrsid3810409\charrsid6890230 6th November, 1987. \par }}