THE CONCEPT OF TAX INCOME. ECONOMIC AND SOCIAL ISSUES IN THE CONTEXT OF THE WAYS OF HARMONIZATION PROCESSES
THE CONCEPT OF TAX INCOME. ECONOMIC AND SOCIAL ISSUES IN THE CONTEXT OF THE WAYS OF HARMONIZATION PROCESSES

Summary/Abstract: In the development of income tax, the very concept of income was fundamental. Two basic concepts of the concept of income can be distinguished. The first is the concept of the source theory of income aimed at the regular flow of economic values from specific sources, which is historically associated with the English income tax. According to this theory, tax income is a regular surplus derived from fixed sources. A much broader treatment is given to income according to the pure wealth accrual theory, which links tax income to the accrual of economic disposable income, whether the income is periodic or one-time. The essence of this theory is the economic benefit capacity of an entity obtained over a certain period of time, and calculated by adding up all pure income (revenue) and benefits, including one-time benefits (e.g., donations, lottery winnings, etc.) earned during the tax year. The theories presented have had a significant impact on the historical development of certain types of income tax. The main purpose of the article is to analyze the concept of tax income from the perspective of the possibility and desirability of harmonizing personal income taxation in EU countries.

• Details
• Contents