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Annualization of income for newly registered couple

ATA/242/1997Court of Justice / Administrative ChamberApr 15, 1997Confirmed

Open source

Extracted by Omnilex

Omnilex summary

A couple entered in the inhabitants' register in June 1993 challenged the tax authority's method of annualizing their income to the end of the year. The court held that this approach was lawful under LCP 12(1), because it matches the statutory purpose and does not offend equality of treatment: it only raises the applicable tax rate and does not attribute unrealized income.

Omnilex headnote

LCP 12 al. 1; annualization of income for a taxpayer or couple entering tax liability during the year; the authority may extrapolate the income realized during the taxable period to year-end where the method serves the statute's purpose. Such annualization does not breach equality of treatment if it merely determines the tax rate and does not treat unrealized income as earned.

Full text

Descripteurs

ANNUALISATION; REVENU; ASSUJETTISSEMENT(IMPOT); CALCUL; DOMICILE; CONJOINT; IMPOSITION DANS LE TEMPS; CALCUL DE L'IMPOT; EGALITE DE TRAITEMENT; FIN

Normes

LCP.12 al.1

Résumé

S'agissant d'un couple annoncé au contrôle de l'habitant en juin 1993, l'administration fiscale a justement annualisé le revenu réalisé de cette période à la fin de l'année. Cette méthode correspond au but de la loi et n'est en rien contraire au principe de l'égalité de traitement, dans la mesure où elle ne conduit qu'à une élévation du taux d'imposition et non à la prise en considération d'un revenu non réalisé.

Keywords

annualizationincome taxtax assessmentdomicileequality of treatmenttax ratejoint taxation

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

Whether income for a couple newly registered during the year may be annualized until year-end for tax calculation, consistently with equality of treatment.

Extracted holding

Yes. The administration correctly annualized the income earned during the period up to the end of the year; this merely affects the tax rate and does not tax unrealized income.

Extracted reasoning

The method follows the purpose of the statute and does not violate equality, because it only extrapolates the realized income over the period and does not include fictitious income.

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