| 4/2/2012 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 8 |
Decided on 9th February 1954. |
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Deductibility Of Expenses That Had Been Subject Of An Unsuccessful Claim To The War Damage Commission.
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In terms of now long obsolete provisions, no deduction for repairs could be allowed for "...the cost of repair of any property which has been subject of a claim under the War Damage Ordinance, 1943".
Appellant had made such a claim, but this was not considered by the War Damage Commission because of a procedural defect. The Court was of the opinion that, in the circumstances, appellant could hardly be said to have filed a claim with the W.D.C. In any case, to make sense, the prohibition could only apply where a successful claim had been made, so that the appellant would not actually have disbursed expenses that he could then claim as a deduction for tax purposes. This seemed to be the line taken by text books on very similar U.K. legislation, while a general rule of interpretation of tax law in U.K. regarding imprecise drafting of legislation was: "...to find out what the legislature must be taken to have really meant by the expression which it has used, without necessarily attributing to it a precise appreciation of the technical appropriateness of its language".
BSC Case No: 2/53
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