TSEM9410 | Ownership and income tax: income tax claims - examples

Examples of income tax claims include:

1. Property is held in A’s name. A says s/he has transferred beneficial ownership of the property to B, who should be taxed on all the income.

2. Property is held in A’s name. A says the property is beneficially owned by A and B, and so the tax due on the income should be split between them.

3. Property is held in A’s name. A says s/he is the legal owner of the property but claims that B provided part of the cost, so B should be taxed on part of the income.

4. Property is held in A’s name. A says s/he still owns the property but has transferred the right to all of the income to B, so B should be taxed on it.

5. Property is held in the name of A and B. A claims that the property is beneficially owned by B only, so B should be taxed on the income.

6. Property is held in the name of A and B. A claims that B provided part of the cost, so B should be taxed on part of the income.

7. Property is held in the name of A and B. A claims that the income belongs 10% to A and 90% to B, so B should be taxed on 90% of the income.

There may be other variations - examples of various claims and explanations of the correct treatment are given in TSEM9900.