INCOME
,Why is
income subject to tax?
Income is regarded as the best measure of
taxpayer’s’ ability to pay tax. It is an excellent
object of taxation in the allocation of government
costs.
, What is
income for taxation purposes?
A taxable item of income is referred to as an “item
of gross income” or “inclusion in gross income”.
Gross income is broadly defined as any inflow of
wealth to the taxpayer that increases net worth
from whatever source. It includes income from
employment, trade, business or exercise of
profession, income from properties and other
sources such as dealing in properties and other
regular transactions.
,Why is
income subject to tax?
Income is regarded as the best measure of
taxpayer’s’ ability to pay tax. It is an excellent
object of taxation in the allocation of government
costs.
, What is
income for taxation purposes?
A taxable item of income is referred to as an “item
of gross income” or “inclusion in gross income”.
Gross income is broadly defined as any inflow of
wealth to the taxpayer that increases net worth
from whatever source. It includes income from
employment, trade, business or exercise of
profession, income from properties and other
sources such as dealing in properties and other
regular transactions.
