| 17/5/2012 |
HOME
FSS
Downloads
|
| Board of Special Commissioners - Cases |
| Case No. 45/69 |
Decided: 2 June, 1972 |
|
|
Expenses may only be deducted against the income which they help to produce and not other sources of income
|
Appellant claimed that Revenue ought to have allowed a deduction in respect of interests paid on a loan entered into with a view to satisfying a condition of employment. It resulted that, in order to qualify for employment, appellant had to take out a loan and invest it by way of capital in the employing company which required financing.
The Board established that the company had never registered a profit and paid any dividends and, therefore, the loan interests were definitely not incurred in the production of income but definitely on the acquisition of capital. They could not be deducted from income earned from other sources nor considered as a business loss.
It has been consistently held, both by the Board and the Court of Appeal, that although income from all sources is grouped together for tax purposes, income from each source has to be computed separately, and the law is clear that expenses can only be deducted against the income which they help to produce.
|
|
|
|
|