Analysing the Judicial Definition of Income in Light of Folk Justice

Fairness is integral to the effective operation of a tax system. However, Australia’s judicial interpretation of income has been criticised for departing from the measure of accrued income and, thus, lacking fairness. This article revisits the judicial meaning of “income”, assuming that judges re...

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Main Author: Allen, Christina
Format: Journal Article
Published: Thomson Reuters 2022
Online Access:http://hdl.handle.net/20.500.11937/87067
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author Allen, Christina
author_facet Allen, Christina
author_sort Allen, Christina
building Curtin Institutional Repository
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description Fairness is integral to the effective operation of a tax system. However, Australia’s judicial interpretation of income has been criticised for departing from the measure of accrued income and, thus, lacking fairness. This article revisits the judicial meaning of “income”, assuming that judges reflect a social justice mentality. It examines cases dealing with bonus shares, which can be viewed as having applied the concept of “flows”, as well as cases that deal with welfare payments, income from hobbies, windfalls, gifts and business income. The article finds that the court has confined the definition of income to what people expect to receive and depend on to live; however, business income is examined to identify actual profit. It concludes that accrued income need not be the only way for income tax to appeal to fairness.
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spelling curtin-20.500.11937-870672022-01-10T01:41:35Z Analysing the Judicial Definition of Income in Light of Folk Justice Allen, Christina Fairness is integral to the effective operation of a tax system. However, Australia’s judicial interpretation of income has been criticised for departing from the measure of accrued income and, thus, lacking fairness. This article revisits the judicial meaning of “income”, assuming that judges reflect a social justice mentality. It examines cases dealing with bonus shares, which can be viewed as having applied the concept of “flows”, as well as cases that deal with welfare payments, income from hobbies, windfalls, gifts and business income. The article finds that the court has confined the definition of income to what people expect to receive and depend on to live; however, business income is examined to identify actual profit. It concludes that accrued income need not be the only way for income tax to appeal to fairness. 2022 Journal Article http://hdl.handle.net/20.500.11937/87067 Thomson Reuters restricted
spellingShingle Allen, Christina
Analysing the Judicial Definition of Income in Light of Folk Justice
title Analysing the Judicial Definition of Income in Light of Folk Justice
title_full Analysing the Judicial Definition of Income in Light of Folk Justice
title_fullStr Analysing the Judicial Definition of Income in Light of Folk Justice
title_full_unstemmed Analysing the Judicial Definition of Income in Light of Folk Justice
title_short Analysing the Judicial Definition of Income in Light of Folk Justice
title_sort analysing the judicial definition of income in light of folk justice
url http://hdl.handle.net/20.500.11937/87067