Commentary on Sections Relevance of “earned income” Overview Section 844: Letters patent etc: exempting provisions
2543.This section voids the impact of exempting provisions in letters patent. It is based on section 829(4) of ICTA.
2544.The words “to be granted” in the source legislation have been omitted as it is not possible for an exemption to be in point until the letters patent are actually granted.
2545.Subsection (3) is drafted on the basis that purported exemptions in all letters patent etc are void.
2546.Section 829(4) of ICTA also contains the rule that any statute which purports to confer income tax exemptions on a particular person or class of persons is void. It is not considered that “statute” can have its modern meaning of “Act of Parliament”, since it is always open to Parliament to enact specific tax exemptions if it chooses to do so. It is instead aimed at provisions of a quasi-legislative nature such as bye-laws. But the idea of a local rule overriding an Act of Parliament by providing an income tax exemption is no longer tenable. So this part of section 829(4) is repealed as obsolete.