Law 5110 Study Guide - Quiz Guide: Capital Asset, Capital Gain, Ordinary Income
Document Summary
Therefore, some countries exclude capital gains (isolated transactions) from business income. How capital gains are taxed: taxing capital gains, erosion of tax base, administrative considerations for movable assets (shares). Especially if non-residents: solution: exchange of information / exit taxes. What is presumptive income: applicable to certain groups of taxpayers, presumption: rebuttable or irrebuttable, minimum tax or exclusive, mechanical vs. discretionary, administrative convenience; taxpayer compliance reduction; prevention of tax evasion. Taxation of business income and the methods of profit determination: business income. Business income is any income realized as a result of business activity. Gains from one-off or isolated transactions such as immovable property sales are particularly difficult to include in the business income: some countries exclude capital gains (isolated transactions) from business income. Other countries have by means of case law included these gains on the basic income tax system (aus/can) or adopted a separate capital gain tax (uk). It depends but certain rules may be applicable:
