Academy Cleaning & Security Pty Ltd v Deputy Commissioner of Taxation [2017]: Taxation Law

Running head: TAXATION LAW
Taxation Law
Name of the Student
Name of the University
Authors Note
Course ID

1TAXATION LAW
Table of Contents
Academy Cleaning & Security Pty Ltd v Deputy Commissioner of Taxation [2017]:.............2
Summary of the Key Facts and Tax Issues of the case:.............................................................2
Evidence supporting the decision of judge:...............................................................................3
Evidence supporting the judge’s decision of Part IVA in ITAA 1936:.....................................5
Reference list:.............................................................................................................................6

2TAXATION LAW
Academy Cleaning & Security Pty Ltd v Deputy Commissioner of Taxation [2017]:
Summary of the Key Facts and Tax Issues of the case:
The taxpayer bought an appeal to the court under “section 14ZZ of the Tax
Administration Act 1953” against the decision stated by the deputy commissioner of the
taxation to disallow the objection regarding the commissioner assessment along with the
shortfall penalty that was imposed during the income year ended 30 June 20091. In material,
the fortune of the Academy’s objections turns out whether the commissioner must have
disallowed the claim of deducting $420,000 from the taxable income under “section 8-1 of
the ITAA 1997”2. The academy bought forward the claim of deduction and it was contended
that the it was an expenses that occurred at the time of gaining or generating the taxable
income inside the provision of “section 81 (1) of the ITAA 1997”. Furthermore, the expenses
were incurred in execution of business with the objective of gaining the taxable income
within the provision of “section 8-1(1) (b) of the ITAA 1997”.
The Academy contended that the commissioner has made a mistake in ascertaining
any tax benefit that it would obtain, given the entire portion of the expenses were allowed as
deductions either under the limbs of “section 8-1 (1) of the ITAA 1997” since it was non-
allowable or the same has been obtained in association with the scheme of “Part IVA of
ITAA 1997”3.
1 Woellner, Robin, et al. "Australian Taxation Law 2016." OUP Catalogue (2016).
2 Barkoczy, Stephen. "Foundations of taxation law 2016." OUP Catalogue (2016).
3 Cao, Liangyue, et al. "Understanding the economy-wide efficiency and incidence of major
Australian taxes." Canberra: Treasury working paper 2001 (2015).