| 9/9/2010 |
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| Court of Appeal - Decisions in Income Tax Cases |
| Case No: 59 |
Decided on 8 March 1965 |
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Exemption Of Scholarship Income
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This was the second of three cases relating to scholarships before the law was changed to its present form. It was held that a scholarship need not be described as such when granted, nor need it arise from any fund, foundation, bursary or similar sources. When a Government employee was sent on a full time course of study his income from Government sources (in the present case a variety of allowances, some having relation to his normal salary others not) became income from a scholarship and hence exempt. The Court also held that the rule of 'ejusdem generis' could not be used to render it necessary that a scholarship had to be from an educational endownment within the context of an exemption granted to any income 'arising from a scholarship, exhibition, bursary or any similar educational endownment'. The law has since been changed to ensure that in cases where a scholarship is granted to an employee who remains in employment during the course of the scholarship, the funds really emanating from his employment would still be liable to tax, despite any description that may be given to them.
BSC Case No: 9/64
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