REPUBLIC
V.
COMMISSIONER OF INCOME TAX; EX PARTE NATIONAL EMPLOYERS MUTUAL GENERAL INSURANCE ASSOCIATION LIMITED

TAYLOR J.: In this motion, the National Employers Mutual General Insurance Association Ltd. (hereinafter referred to as the applicants), have applied for certiorari to quash the tax assessments for 1962-63 to 1970-71 accounting years levied on them on 23 April 1971 and notices of refusal to amend the said assessments dated 17 March 1972. The assessments and the notices of refusal to amend were all filed in these proceedings. The application is alleged to be founded on an error of law and the error of law was formulated as follows:

“(a) the Commissioner for Income Tax failed to give adequate consideration to the law and fact that the society was a guaranteed mutual and non-profit making insurance company, membership whereof comprised its policy holders only; it did not trade or do business. As such it was in law not liable to income tax because it did not earn income.

(b) The members were only contributors to a common fund in pursuance of a scheme for their mutual insurance, which exclu…