https://www.taxtmi.com/article/detailed?id=1773 Receipts from transfer of certified emission reductions (carbon credits) are argued to be capital accretions arising from global environmental entitlements, not from production, sale of goods or services. Lacking cost of acquisition, cost of improvement and direct business nexus, such receipts are said not to constitute business income or taxable capital gains; analogous authorities concerning transferable loom-hours and sale of calves are invoked to support this characterization. The note recognises differing cross-border tax effects for traded CERs but maintains that incidental accruals to industrial activity remain capital in nature. en-us Mon, 18 Jun 2012 15:42:07 +0530 Mon, 18 Jun 2012 15:42:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1773 Receipts from transfer of certified emission reductions (carbon credits) are argued to be capital accretions arising from global environmental entitlements, not from production, sale of goods or services. Lacking cost of acquisition, cost of improvement and direct business nexus, such receipts are said not to constitute business income or taxable capital gains; analogous authorities concerning transferable loom-hours and sale of calves are invoked to support this characterization. The note recognises differing cross-border tax effects for traded CERs but maintains that incidental accruals to industrial activity remain capital in nature. Articles Income Tax Mon, 18 Jun 2012 15:42:07 +0530 https://www.taxtmi.com/article/detailed?id=1773