21/11/2008

Board of Special Commissioners - Cases

Case No. 12/63   Decided: 23 November, 1963 previndexnext


Alimony received by a legally separated wife does not constitute income in her hands when the community of acquests is not dissolved - article 5, now 4, Income Tax Act

Appellant, a legally separated person, contested the Commissioner's decision to consider the alimony she received as chargeable income in her hands even though the community of acquests had not been dissolved.

The Board viewed the point at issue in the light of the provisions of the Civil Code (before it was extensively amended through the introduction of the Family Law).

It was held that all the family income formed part of the community of acquests and the husband was the head of the community obliged to maintain his wife out of such income. As administrator he was, therefore, merely allocating a part of the community income to his wife as agreed to by means of the deed of separation. Appellant was, therefore, correct in maintaining that the alimony paid to her could not constitute a separate source of income chargeable to tax.


An appeal was entered before the Court from this decision (see case no. 55).

 

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