{\rtf1\ansi\ansicpg1252\uc1\deff0\stshfdbch0\stshfloch0\stshfhich0\stshfbi0\deflang1033\deflangfe1033{\fonttbl{\f0\froman\fcharset0\fprq2{\*\panose 02020603050405020304}Times New Roman{\*\falt Times New Roman};}
{\f39\froman\fcharset238\fprq2 Times New Roman CE{\*\falt Times New Roman};}{\f40\froman\fcharset204\fprq2 Times New Roman Cyr{\*\falt Times New Roman};}{\f42\froman\fcharset161\fprq2 Times New Roman Greek{\*\falt Times New Roman};}
{\f43\froman\fcharset162\fprq2 Times New Roman Tur{\*\falt Times New Roman};}{\f44\froman\fcharset177\fprq2 Times New Roman (Hebrew){\*\falt Times New Roman};}{\f45\froman\fcharset178\fprq2 Times New Roman (Arabic){\*\falt Times New Roman};}
{\f46\froman\fcharset186\fprq2 Times New Roman Baltic{\*\falt Times New Roman};}{\f47\froman\fcharset163\fprq2 Times New Roman (Vietnamese){\*\falt Times New Roman};}}{\colortbl;\red0\green0\blue0;\red0\green0\blue255;\red0\green255\blue255;
\red0\green255\blue0;\red255\green0\blue255;\red255\green0\blue0;\red255\green255\blue0;\red255\green255\blue255;\red0\green0\blue128;\red0\green128\blue128;\red0\green128\blue0;\red128\green0\blue128;\red128\green0\blue0;\red128\green128\blue0;
\red128\green128\blue128;\red192\green192\blue192;}{\stylesheet{\ql \li0\ri0\widctlpar\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 \snext0 Normal;}{\*\cs10 \additive \ssemihidden Default Paragraph Font;}{\*
\ts11\tsrowd\trftsWidthB3\trpaddl108\trpaddr108\trpaddfl3\trpaddft3\trpaddfb3\trpaddfr3\tscellwidthfts0\tsvertalt\tsbrdrt\tsbrdrl\tsbrdrb\tsbrdrr\tsbrdrdgl\tsbrdrdgr\tsbrdrh\tsbrdrv 
\ql \li0\ri0\widctlpar\aspalpha\aspnum\faauto\adjustright\rin0\lin0\itap0 \fs20\lang1024\langfe1024\cgrid\langnp1024\langfenp1024 \snext11 \ssemihidden Normal Table;}}{\*\latentstyles\lsdstimax156\lsdlockeddef0}{\*\rsidtbl \rsid6676\rsid4464486
\rsid7618084\rsid8654874\rsid9731089\rsid13721235\rsid15220864\rsid15223734}{\*\generator Microsoft Word 11.0.5604;}{\info{\author blake_r}{\operator sam_f}{\creatim\yr2010\mo6\dy1\hr15\min46}{\revtim\yr2011\mo9\dy13\hr11\min45}{\version7}{\edmins22}
{\nofpages2}{\nofwords632}{\nofchars2900}{\*\company scims}{\nofcharsws3508}{\vern24689}}\paperw11906\paperh16838\margl1440\margr1440 
\widowctrl\ftnbj\aenddoc\noxlattoyen\expshrtn\noultrlspc\dntblnsbdb\nospaceforul\subfontbysize\hyphcaps0\formshade\horzdoc\dghspace120\dgvspace120\dghorigin1701\dgvorigin1984\dghshow0\dgvshow3
\jcompress\viewkind4\viewscale100\pgbrdrhead\pgbrdrfoot\nolnhtadjtbl\rsidroot9731089 \fet0\sectd \linex0\sectdefaultcl\sftnbj {\*\pnseclvl1\pnucrm\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl2\pnucltr\pnstart1\pnindent720\pnhang {\pntxta .}}
{\*\pnseclvl3\pndec\pnstart1\pnindent720\pnhang {\pntxta .}}{\*\pnseclvl4\pnlcltr\pnstart1\pnindent720\pnhang {\pntxta )}}{\*\pnseclvl5\pndec\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl6\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}
{\pntxta )}}{\*\pnseclvl7\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl8\pnlcltr\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}{\*\pnseclvl9\pnlcrm\pnstart1\pnindent720\pnhang {\pntxtb (}{\pntxta )}}\pard\plain 
\qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 \fs20\lang1033\langfe1033\cgrid\langnp1033\langfenp1033 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 IN THE SUPREME COURT OF FIJI}{
\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
\par }{\b\fs24\lang2057\langfe1033\langnp2057\insrsid4464486 Court o}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7618084\charrsid4464486 f Review}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid4464486 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 Action No. 17 of 1985
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 Between:
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 H.M ADAM
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 Appellant
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid7618084\charrsid6676 A}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 nd}{
\fs24\lang2057\langfe1033\langnp2057\insrsid7618084 :}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 C.I.R.
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 Respondent}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 Before the Hon. Mr Justice}{\fs24\lang2057\langfe1033\langnp2057\insrsid15220864  Stuart}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par 
\par Friday the 27th day of March, 1987 at 9.30 a.m.
\par 
\par Appellant in person
\par Mr S M Shah for the Respondent
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\b\fs24\ul\lang2057\langfe1033\langnp2057\insrsid6676\charrsid7618084 JUDGMENT
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par Mr Hazrat Mohammed Adam, the appellant, divorced his wife in 1980, at which time he was paying her maintenance at the rate of $10.00 a week. In 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 8}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 3 his wife'}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 s circumstances had changed for}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676  the better, and the appe
llant sought to have the maintenance order discharged.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 The Magistrates Court was unwilling}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 to }{\fs24\lang2057\langfe1033\langnp2057\insrsid7618084 completely }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
discharge the order}{\fs24\lang2057\langfe1033\langnp2057\insrsid7618084 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676  and suggested that the parties might compromise on a lump sum pay}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
ment. In December, 198}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 4, therefore, the parties agreed upo}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 n payment of a lump sum of $4,0}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 00 to the}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
former wife and the maintenance order was completely discharged. Up to the time of the discharge the appellant had continued to pay maintenance at the rate of $10.00 a week.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 In his}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{\fs24\lang2057\langfe1033\langnp2057\insrsid7618084 1984 }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
income tax return he claimed a deduction of $4,470. The}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 respondent allowed him $470 but disallowed $4,000.}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 The appellant therefore lodged this appeal. He relies on Section 19(k) of the Income Tax Act, Cap 201 Which reads}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676 :
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \ql \li720\ri0\nowidctlpar\faauto\adjustright\rin0\lin720\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 "In determining total income no deductions shall be}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 allowed in respect of:}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  \'85\'85}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
\par }\pard \ql \li1440\ri0\nowidctlpar\faauto\adjustright\rin0\lin1440\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
(k) alimony or maintenance, other than sums payable under any enforceable agreement or an order of a court of competent jurisdiction which a person can establish is paid from income which has borne or is liable to tax in Fiji."
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 It should perhaps be explained that th}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 is sub-section was originally (l}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
) and became (k) under amendment No. 21 of 19}{\fs24\lang2057\langfe1033\langnp2057\insrsid7618084 8}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 0.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 The appellant gave evidence on}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676  his own behalf, but called no witnesses.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 The respondent did not call evidence.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 n his evidence the appell
ant, in answer to the Court, said that he had paid the amount of $4,000 out of his savings. He submitted that his payment was to be taken as pre-payment of maintenance for eight years. Mr Shah on the other hand submitted that the lump sum was payment to e
xone}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 r}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 ate or discharge appellant from payment of maintenance for the future.
\par 
\par The section is couched in a negative form, and permits the deduction only of sums paid under an enforceable legal agreement or an orde}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 r of the Court, and then the ta}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 xpayer has to show that any such money is paid from income which has borne or is liable to tax in Fiji.}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 It is this la}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 s}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
t mentioned requirement which is the appellant's difficulty, for }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 h}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 e told t}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 h}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 e Court that }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 the sum of $4,000 was paid out o}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 f his savings, and there is no ev
idence that his savings have borne tax in Fiji.
\par 
\par A further difficulty arises from the fact that this sum of $4,000 is probably capital in the appellant's wife's hands: see }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid7618084 Hawley v. I.R.C}{
\b\i\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 .}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676  (1925) 9 T.C. 331. Many years ago Lord Dunedin as Lord President of
 the Court of Session in Scotland expressed the opinion in }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid7618084 Vallambrosa Rubber Co v. I.R.C. }{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 (1910) S.C. 519}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
 5 T.C. 525 that "in a rough way" it was not a bad criterion of what is capital expenditure - as against what is income expenditure - to say that capital expenditure is a thing that is going to be spent once and for all, and income expenditu}{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676 r}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 e is a thing that is going to recur}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 every year. So the payments of $10.00 a week were an income expenditure, and properly to be charged against and deducted from i
ncome, whereas the payment of $4,000 is properly to be regarded as capital expenditure and not deducted from income at all}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 . I}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
 accept Mr Shah's submissions}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676 ,}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676  and the appeal will be}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676  }{
\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 dismissed. There will be no order as to costs.
\par 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 K}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid7618084  }{
\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 A Stuart}{\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7618084 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid7618084\charrsid6676 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\b\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 COURT OF REVIEW
\par }\pard \ql \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid6676 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676 
\par }\pard \qc \li0\ri0\nowidctlpar\faauto\adjustright\rin0\lin0\itap0\pararsid7618084 {\fs24\lang2057\langfe1033\langnp2057\insrsid6676 14 May 1987}{\fs24\lang2057\langfe1033\langnp2057\insrsid6676\charrsid6676 
\par }}