Capital and income under the income tax acts - Meaning of capital and income in these acts

Sep 21, 2026

Scholarly legal analysis of how “capital” and “income” are understood under the Income Tax Acts, focusing on the interpretation of capital as property and the dual legal meaning of “property” in both concrete and abstract senses. Explains the taxation at the source principle through judicial and official commentary, describing how income is charged at its source and later distributed among recipients, with attention to real property and profit streams across different interests.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages14

Reading Time35 min

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Capital and income under the income tax acts

Meaning of ‘capital’ and ‘income’ in these acts

(a) ‘Capital’ in relation to the Income Tax Acts

97-84123-1 # Capital and income underthe income tax acts [S.I.] [191-?] ## COLUMBIA UNIVERSITY LIBRARIESPRESERVATION DIVISION BIBLIOGRAPHIC MICROFORM TARGET ORIGINAL MATERIAL AS FILMED- EXISTING BIBLIOGRAPHIC RECORD RESTRICTIONS ON USE: Reproduchons may not be made without permission from Columbia University Libraries. ## TECHNICAL MICROFORM DATA FILM SIZE: 35mmREDUCTION BATIO: 1/:/ MAGE PLACEMENT:IA ⑭ DATE FILMED: // INITIALS: I/ 96 22936 ### TRACKING\#: FILMED BY PRESERVATION RESOURCES,BETHLEHEM,PA. ## BIBLIOGRAPHIC IRREGULARITIES MAIN ENTRY: ……………………… ………………………………………………………………………………- …-……… ………………………………… …………………… … …… ……………… Capital and income under the income tax act …… rm - ## Bibliographic Irreqularities in the Original Document: List allvolumes and pages affected;include name of institution if filming borrowed text. Page(s)missing/not available: Volume(s)missing/not available:_ XIllegible and/or damaged page(s):_p.15,16 Page(s)or volume(s)misnumbered:_ ## Bound out of sequence: Page(s)or volume(s)filmed from copy borrowed from:_ ## Other: ### Inserted material: 150 mm CE r r! u | B | | | --- | --- | | | | | 1.0 mm
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1234567890 | | PRECISIONewRESOLUTION TARGETS METRIC GENRALPURPOSE TARGET ## A&P International PHOTOGRAPHIC PM-MGP ABCDEFGHIJKLMNOPQRSTUVWXYZ o abcdefghijklmnopgrstuvwxyz 2.5 mm 1234567890 √ ## CAPITAL AND INCOME UNDER THEINCOME TAX ACTS THE writer has already discussed in this REVIEw the subject of⊥Canit.al and Tnenmo in ita annmomin a nomad-41. 1e~lCapital and Income in its economic as compared with its legalaspect;¹also as it affeets life-owner and remainderman,²and com-panies regulated by the Companies(Consolidation)Act,I₉08,3withthe conclusion of the present article the whole subject would appearto have been,more or les,brought under consideration. ## MEAXING OF‘CAPITAL³AND'INCOME'IX THESE ACTS. I.(a)‘Capital'in relatiom to the Ineome Taz Aets. The word‘capital'is not employed in these statutes,its equiva-lent expression would seem to be 'property'That word appearsto have its ordinary legal signifieanee,that is,is used both in aconerete and abstract sense to denote either physical property orproprietary rights;it therefore includes ineorporeal hereditaments. Recognition that‘property'is thus used in a double sense is ofimportance when we come to eonsider the system of'taxation atthe souree',a basal principle of the Acts,without a due apprehensionof which it is impoesible to understand them. Lord Macnaghten explained that system thus: ‘Speaking generally,all income is chargeable but chargeable onlyonce.Income is brought into charge at its 8ouree and the burdenis then distributed among the reeipients ofthe income who beartheir share in just proportion.The“profits and gains”...arecharged at their 8ource...the stream fows no further'. Four-fiths of our ineome tax is assesed at its source,and thispoliey is said to be one of the chief causes of the success of theEnglish Income Tax system.6 It was a prominent feature of the Act of I803.Its prineiple wasfully explained in a publication of an official nature then issued: The duty‘is imposed on each souree by itself in the handof the first possessor,at the same time permitting and authoriz-ing its diffusion through every natural channel in its course 1LO.R.xxvL.49.and see xvili,374LQ.R.xxvi.175-3 L.0.R.Xxvi.a31 Income Tax Act,1842,8.1(Sched.A

FAQs

How do the Income Tax Acts define or correspond to “capital”?

The Acts do not use the word “capital”; instead, their equivalent expression is “property,” which carries ordinary legal significance in both concrete and abstract senses.

Why is the dual meaning of “property” important for understanding the system?

Because the Acts rely on a foundational principle of taxation at the source, understanding how “property” is used in two senses is necessary to interpret that system correctly.

What is the “taxation at the source” principle described in the text?

Income is charged at its source only once, and the burden is then distributed among recipients in proportion to their share in the income stream.

Sep 21, 2026

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