| 9/9/2010 |
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| Board of Special Commissioners - Cases |
| Case No. 17/51 |
Decided: 20 October, 1951 |
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A deduction in respect of dependent relatives - article 22(1)(c), now repealed, Income Tax Act
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Appellant claimed a deduction of Lm260 in respect of dependent relatives. The Commissioner maintained that only Lm80 of the deduction claimed was due as appellant had been compensated, albeit in kind, through the services rendered by the said relatives who resided in his house.
The Board held that in establishing the amount which, according to article 22, was due to a taxpayer, no consideration was to be taken of any compensation in kind which the taxpayer may have received from his dependent relatives. The Board also noted that the said relatives had been maintained not by appellant alone but also, although in a lesser extent, by two brothers (one of whom contributed Lm52; the other contributed Lm39)
The total deduction which was due in respect of the dependent relatives in question amounted to Lm240 (Lm60 x 4 persons). This stood to be reduced by the income of one of the relatives (Lm4) resulting in Lm236. Therefore the deduction of Lm236 was to be apportioned between the three brothers according to the amount expended.
This Board decision was appealed. The Court (case no. 6), although for different reasons, confirmed the decision.
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