If an amount is ordinary income to a recipient, which of the following is the most correct:Question 10Answera.It may also be included in the recipient’s assessable income via a statutory income provision.b.If it is also included in the recipient’s assessable income via a statutory income provision then generally the statutory income provision will prevail.c.It may also be included in the recipient’s assessable income via a statutory income provision but the rules about ordinary income will prevail.d.It will never be foreign source income.
Question
If an amount is ordinary income to a recipient, which of the following is the most correct:Question 10Answera.It may also be included in the recipient’s assessable income via a statutory income provision.b.If it is also included in the recipient’s assessable income via a statutory income provision then generally the statutory income provision will prevail.c.It may also be included in the recipient’s assessable income via a statutory income provision but the rules about ordinary income will prevail.d.It will never be foreign source income.
Solution
The most correct answer is b. If an amount is ordinary income to a recipient and it is also included in the recipient’s assessable income via a statutory income provision, then generally the statutory income provision will prevail. This is because statutory income provisions are specific laws that override the general concept of ordinary income.
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