| 21/8/2008 |
Bil-Malti
HOME
SERVICES
HELP
SEARCH
|
| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 98 |
Decided: 28 October, 1974 |
   |
|
Salary Earned By Professed Religious, Members Of Orders Whose Rules Required That All Earnings By Members Had To Be Passed To The Order
|
Most members of the religious orders of the Catholic Church are bound by the rule of Canon Law that any personal earnings made by them have to be passed automatically to the respective order.
Taxpayer was a member of an order and was bound by this rule to pass his salary from Government to his order. He claimed not to be taxable thereon. Since church institutions were at that time not subject to tax, the result would have been that the income would not be taxed at all. The Revenue raised an assessment on the employee directly, and this was confirmed by both the Board of Special Commissioners and the Court of Appeal.
The individual concerned had been employed personally by the Government in view of his academic qualifications. His consent did not come into the picture: it had not been contacted to provide the services. The income had been earned personally by the taxpayer concerned and his obligations under the internal conventual rules constituted an application of income after it had been received. An Irish tax case on the same subject was quoted with approval. The Civil Code provision, to the effect that an individual's succession opened when he joined a religious order, was held to be irrelevant.
BSC Case No: 26/72
|
|
|
|
|