| 17/5/2012 |
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| Board of Special Commissioners - Cases |
| Case No. 1/68 |
Decided: 8 January, 1969 |
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Incentives to new residents - strict interpretation of tax laws - article 22, Income Tax Act, since repealed
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In 1964 the Income Tax Act granted additional relief allowed to new residents consisting of a further personal deduction of 500 pounds and a flat tax rate of 6 penny in the pound.
The relief was subject to various conditions including "(c) that during that year he has received in the Island an amount of income of not less than 800 pounds". The words "received in the Island" were defined as meaning "the excess of the amount of income arising outside the Island and received in the Island over any sum transferred out of Malta." It resulted that appellant had received 961 pounds in income and 2500 pounds in capital. However, appellant had re-transferred the 2500 pounds to Jersey. According to Revenue she had, in the circumstances, lost her claim for the benefits because the income received did not exceed the sum re-transferred outside Malta.
The Board held that Income Tax laws are to be interpreted strictly to the letter, words being given their ordinary meaning; it does not make any difference that the sum remitted out of Malta was capital and not income, because the law refers to "any sum". The appeal was rejected.
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