Capital Taxation Law and Practice

The taxation of capital predates the taxation of income. Although a fiscal year’s income is often regarded as a measure of wealth accumulation, capital taxation has historically been more contentious than other forms of taxation. Its frequent repeal and reintroduction are attributed to factors such as low revenue yields, the subjective nature of the tax base, and the unpredictability of taxable events. These challenges are further compounded by traditional issues like tax avoidance and an extensive range of exemptions, which are particularly prominent in capital taxation. Despite these complexities, many countries continue to implement capital taxation regimes.

This book is organized into two parts: Part A explores the various forms of capital taxation, highlighting their key features, the historical development of wealth transfer taxes, and essential design principles. Part B examines the capital taxation systems of select countries. Policymakers, academics, tax professionals, and high-net-worth individuals will find this book to be an invaluable resource.