Empirical investigation into the tax court assessment of the economic interest concept in natural resource taxation
Within the natural resource taxation area, the concept of economic interest evolved as a crucial issue. The concept controls the allowance of the depletion deduction and, in some instances the availability for capital gain treatment. Economic interest, however, has become a very confusing issue over the years and is difficult to apply in many circumstances. This research study attempts to provide a better understanding of the economic interest concept by identifying significant factors that have been present in certain tax related court cases. The entire population of Tax Court cases from 1933 through 1984 in which economic interest was the main issue were read to determine the existence of twelve variables. Logit analysis was then used to identify these variables, which were significant. Other parts of the research study include the evaluation of a hold-out sample, determining whether the significant variables have changes over time, and comparing the results of the Tax Court cases with the results developed for Court of Claims cases. The logit model developed using all of the 140 Tax Court observations indicated five significant variables were present. A classification accuracy of 80% was obtained using the model to classify the Tax Court cases.
- Research Organization:
- Kentucky Univ., Lexington (USA)
- OSTI ID:
- 5168996
- Resource Relation:
- Other Information: Thesis (Ph. D.)
- Country of Publication:
- United States
- Language:
- English
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