17/5/2012

Board of Special Commissioners - Cases

Case No. 2/69   Decided: 11 August, 1969 previndexnext


Expenses in transporting tools of the trade are considered to be domestic in nature and not deductible. - article 11 now 26, Income Tax Act

Whereas article 10 provides that deductions are to be "wholly and exclusively incurred in the production of the income" article 11 provides such deductions are not allowable if they are "domestic or private expenses". As held by the Court of Appeal in case No. 24, these two articles are complementary to each other; an expense may be deducted solely if it is allowed by article 10 but not prohibited by article 11. It has invariably been held that transport expenses incurred in travelling from one's residence to the place of work and back are not deductible. There are various instances where, in order to earn a living, one has to incur expenses pertaining to his particular circumstances; such expenses have always been considered to be private and domestic in nature and, therefore, not deductible.



 

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