As income tax deals primarily with income, it would be reasonable to expect a clear definition of income in the Income Tax Act (ITA) 2007. However, the ITA 2007 does not comprehensively define ‘income’. Instead, it lists general categories of income. Hence, the courts have identified several criteria that are considered to be the hallmarks of receipts that are of an ‘income’ nature.

REQUIRED:
Write on what constitutes ‘income’ in taxation law. In your essay include discussion on the concept of income in taxation law, and the income/capital distinction. Also include discussion on how some capital receipts may be captured under the income regime because of the bright-line test.n

Answer rating: 100% (QA)

Answer Income in taxation law is defined as any money or property that is received either in cash or ... View the full answer