22/8/2008

Court of Appeal - Decisions in Income Tax Cases

Case No: 41   Decided on 29 November 1961 previndexnext


Personal Deductions And Submission Of Returns

The taxpayer had failed to file his tax returns. As personal deductions had to be claimed on the appropriate form, no deductions were allowed when estimated assessments were raised. The returns were eventually filed after the Commissioner of Inland Revenue had issued a notice of refusal in respect of the relative objection, and during the course of the consequential appeal to the Board of Special Commissioners.

The Board agreed with the Revenue that no personal deductions could be allowed once the returns had not been submitted at the appropriate time. In the Board's opinion, the returns were to be considered as never having been submitted.

The Court disagreed. There were other punitive steps which the authorities could have taken when the returns had not been filed, but the fact was that the assessments had not yet become final and conclusive, and since the returns had finally been submitted, the deductions should be allowed.

This case, and the following case no 42, were concerned with personal deductions which are no longer available, but they may have significance in applying the "single" or "married" rates of tax.

BSC Case No: 22/60

 

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