If an amount is ordinary income to a recipient: O it must also be a capital gain O It may also be included in the recipient's assessable income via a statutory income provision but the rules about ordinary income will prevail. o It may also be included in the recipient's assessable income via a statutory income provision. o If it is also included in the recipient's assessable income via a statutory income provision then usually the statutory income provision will prevail. A tax differs from a user charge in a user pays system in that: A user charge is applied arbitrarily in cases of emergency whereas a tax is applied systematically and according to predetermined principles. The government is obliged to repay the monies that it raises through a tax. A user charge is applied to a particular good or service supplied by the government. The government is obliged to pay interest on monies that it raises through borrowings. o