Tonnage tax eligibility for jointly owned ships upheld where co-owner operation was not required under the scheme.

A jointly owned vessel that had already received approval under the tonnage tax regime continued to qualify for the scheme. The Revenue argued that fractional ownership and operation of the ship by another co-owner disqualified the assessee, but the governing provisions on ownership, qualifying ships, and the tonnage tax scheme did not require each co-owner to personally operate the vessel. The earlier assessment year decision treating the same vessel as a qualifying ship also supported the claim, and no material distinction was shown for the year in question. The assessee therefore remained eligible for tonnage tax treatment, and the Revenue's objection failed.

---

---

Issues: Whether the assessee was entitled to the benefit of the tonnage tax scheme in respect of a jointly owned ship, and whether operation of the vessel by another co-owner disentitled the assessee from such benefit.

Analysis: The disputed ship was jointly owned, and the approval under the tonnage tax regime had been granted. The Revenue's objection was that the assessee was only a fractional owner and that the ship was operated by another co-owner. The governing provisions on ownership, qualifying ships, and the tonnage tax scheme did not require each co-owner to individually operate the vessel in order to claim the benefit. The earlier decision in the assessee's own matter for a subsequent year had already treated the same vessel as a qualifying ship, and no material distinction was shown for the year in question.

Conclusion: The assessee remained eligible for the tonnage tax scheme, and the Revenue's challenge failed.

---