If an amount is ordinary income to a recipient: O it must also be a capital gain O It may also be included in the recipient's assessable income via a statutory income provision but the rules about ordinary income will prevail. O It may also be included in the recipient's assessable income via a statutory income provision. O Ifitis also included in the recipient's assessable income via a statutory income provision then usually the statutory income provision will prevail.
If an amount is ordinary income to a recipient: O it must also be a capital gain O It may also be included in the recipient's assessable income via a statutory income provision but the rules about ordinary income will prevail. O It may also be included in the recipient's assessable income via a statutory income provision. O Ifitis also included in the recipient's assessable income via a statutory income provision then usually the statutory income provision will prevail.
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:If an amount is ordinary income to a recipient:
O it must also be a capital gain
O It may also be included in the recipient's assessable income via a statutory income provision but
the rules about ordinary income will prevail.
O It may also be included in the recipient's assessable income via a statutory income provision.
O fit is also included in the recipient's assessable income via a statutory income provision then
usually the statutory income provision will prevail.
A tax differs from a user charge in a user pays system in that:
A user charge is applied arbitrarily in cases of emergency whereas a tax is applied systematically and according
to predetermined principles.
The government is obliged to repay the monies that it raises through a tax.
A user charge is applied to a particular good or service supplied by the government.
The government is obliged to pay interest on monies that it raises through borrowings.
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