Prostitute- it is regarded as trade and the revenue law states that profit made from a trade are to be taxed mann v. Nash. Money put in constructive trust- who should pay the tax, claim of right doctrine- doesnt exist on australian law so not applicable, no claim of rights bc he stold the money. Cleans hand doct- he coperated nd admited he stold the money so this doesnt apply. Funds were held on constructive trust for taxpayers employer nd interest was not income derived by taxpayer. Wilcox- ruling overturned w james vs us- do embexled funds constitute gros income of the embezler? For gains to be tax- presence of claim of rights to the gain, absence of the req to repay the gain. 16 amendment says no distiction btwn legal nd ilegal income. James has to repay the misapropiate finds nd pay tax upon the funds. Mallalieu- r clothes she has to buy deductible from tax incm? Clothes had mix personal nd busines purpose so no deduct exceptions of wig, gown, collar. National grid industry- whether the company is obliged to pay the tax imposed directcly without a deferral? Company arguest that it is going against Art 49 on the freedom of establishment nd that tax canot b justified bcs it is charged on unrealized capitl gain. Netherlands can collect exit tax but must do so proportionaly. Lankhorst- Is it discriminatory that foreign corp r not entitle to tax credit while native corp are? 2 parent companies dutch and subsidiary german bcs they r diferent jurisdict they cnt pay it as debt they have to pay it as dividens. Thin cap rule is not allowed bcs it goes against princ of discriminat nd goes against the feedom of establishmnt.
CG- us- taxed at preferential rate, eu- no distict btwn income nd cg, when rise from busines taxed as ordinary income, private spehre not taxed. Special rules- roll-over relief- allows to prospone payment of tax, preferential- encourgage invest, depreciation- when u make a profit of a depreciated asset, capital los. Incentive of gov- accelerated depreciation- granting certain taxpayer posibility to recover the capitalized cost in shorter time. It- bust depreciation by 150.