| 22/8/2008 |
Bil-Malti
HOME
SERVICES
HELP
SEARCH
|
| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 80 |
Decided on 26 May 1972 |
   |
|
Premium On Bonds Coming Into Existence When The Bonds Were Held In Usufruct
|
The taxpayer held in usufruct U.K. Defence Bonds which on their maturity yielded a premium. The question at issue was not, strictly speaking, whether the premiums were income or capital, but whether they belonged to the taxpayer as usufructuary of the Bonds, or whether they should have been considered as an accretion to capital and hence belonging to the bare owner, who was another person.
The Board of Special Commissioners and the Court relied on a declaration by the U.K. Director of Savings to the effect that the premiums stood to be considered an accretion to capital. As such, they could not be held to be 'Civil Fruits' for the purposes of Maltese Law, and therefore they did not belong to the usufructuary, who was the appellant taxpayer. If the premiums were at all taxable, they were taxable in the hands of the bare owner to whom they would actually belong.
BSC Case No: 6/69
|
|
|
|
|