Taxation of capital gains and horizontal equity: a review of the Australian perception

Maheswaran Sridaran

Research output: Contribution to journalArticlepeer-review

Abstract

This paper addresses the question of whether the enactment of the Australian regime of income tax on capital gains (the CGT regime) was actuated by a perception that that regime will satisfy horizontal equity. This paper answers that question in the affirmative. It does so based on an analysis of the history of taxation of capital gains in Australia. To enable that analysis, this paper sets out an overview of the history of taxation of capital gains in Australia, and (to set the context for that overview) also sets out a comprehensive discussion of what constitutes capital gains and what constitutes horizontal equity. At the end of this paper, a proper practical standard for identifying micro-level outcomes resulting from the detailed workings of the CGT regime where horizontal equity is violated (despite the perception that that regime should satisfy horizontal equity) is identified, as are directions for future relevant research.
Original languageEnglish
Pages (from-to)41-100
Number of pages60
JournalAustralian tax forum
Volume20
Issue number1
Publication statusPublished - 2005
Externally publishedYes

Keywords

  • Capital gains Horizontal equity Australian
  • capital gains
  • horizontal equity
  • Australia

Fingerprint Dive into the research topics of 'Taxation of capital gains and horizontal equity: a review of the Australian perception'. Together they form a unique fingerprint.

Cite this