The Concept of Income

Fülszöveg

What is 'income'? This treatise examines income as a surrogate for the underlying features of an individuars well-being, for the purpose of achieving horizontal equity in taxation. Part I analyses the development of a variety of income concepts. The foundation concept of income, based on the Schanz-Haig-Simons wealth accrual and consumption models, is found to be the most appropriate measure of income that might be used in tax practice to achieve the equity objective. Other economic concepts of income and accounting and legal concepts of income are tested against the foundation concept as a benchmark to identify their congruence with, and divergence from, that standard. The objective is to seek a route towards the practical application of the foundation concept of income, which improves the existing notion of taxable income. Drawing extensively on case law, particularly from the United Kingdom, Australia, New Zealand and the United States of America. Part II of the book investigates... Tovább

Fülszöveg

What is 'income'? This treatise examines income as a surrogate for the underlying features of an individuars well-being, for the purpose of achieving horizontal equity in taxation. Part I analyses the development of a variety of income concepts. The foundation concept of income, based on the Schanz-Haig-Simons wealth accrual and consumption models, is found to be the most appropriate measure of income that might be used in tax practice to achieve the equity objective. Other economic concepts of income and accounting and legal concepts of income are tested against the foundation concept as a benchmark to identify their congruence with, and divergence from, that standard. The objective is to seek a route towards the practical application of the foundation concept of income, which improves the existing notion of taxable income. Drawing extensively on case law, particularly from the United Kingdom, Australia, New Zealand and the United States of America. Part II of the book investigates discrepancies between the ways that net receipts and economic gains from selected economic events (business transactions, capital gain transactions, gifting, provision of benefits in kind, and generation of imputed income from owner-use of assets, self performed services and leisure) are included in or excluded from taxable income. The aim is to determine whether the differences are logical and equitable. To enhance tax equity, the thesis advocates the adoption of a comprehensive concept of income, which is closely aligned to the foundation concept of income, for practical taxation purposes. Kevin Holmes Dr Kevin Holmes is a Principal Research Associate at the International Bureau ofFiscal Documentation in Amsterdam. He was formeríy Head of the IBFD's Government Consultancy Department, a university academic and a New Zealand tax partner of an international accountancy firm. Vissza