Tax Law and International Taxation
Added on 2020-03-23
17 Pages2941 Words454 Views
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Running head: TAXATION LAWTaxation LawName of the Student: Name of the University: Author’s Note:
1TAXATION LAWTable of ContentsAnswer to Question No 1................................................................................................................3Requirement 1.1...........................................................................................................................3Issue.........................................................................................................................................3Rules:.......................................................................................................................................3Application:.............................................................................................................................3Conclusion...............................................................................................................................4Requirement 1.2...........................................................................................................................4Issue:........................................................................................................................................4Rule:.........................................................................................................................................4Application..............................................................................................................................4Conclusion...............................................................................................................................5Requirement 1.3...........................................................................................................................5Issue.........................................................................................................................................5Rule:.........................................................................................................................................5Applications:............................................................................................................................5Conclusion...............................................................................................................................6Requirement 1.4...........................................................................................................................6Issue.........................................................................................................................................6Rule:.........................................................................................................................................7
2TAXATION LAWApplications.............................................................................................................................7Conclusion...............................................................................................................................8Answer to Question No 2................................................................................................................9Issue.........................................................................................................................................9Rule:.........................................................................................................................................9Application..............................................................................................................................9Conclusion.............................................................................................................................11Answer to Question No 3..............................................................................................................12Answer to Question No 4..............................................................................................................14Reference List................................................................................................................................15
3TAXATION LAWAnswer to Question No 1 Requirement 1.1 IssueThe problem and the challenge that has been explained with respect to this case studytries to handle the cost of transporting the machine and obtaining allowable deductions in incometax. There are numerous rules and laws that can be applicable with respect to the case study andeach of them are explained as follows: Rules: “Section 8-1 of ITAA 1997”“British Insulated & Helsby Cables v. Atherton (1926)” Application: The generated cost due to the transporting of the machinery to a new location includesthe capital expenditure in accordance to “Section 8-1 of ITAA 1997”. It has been viewed that“Section 8-1 of ITAA 1997” has brought about the fact that the deductions that are permissiblefor the intention of income tax is granted when the expenditure is experienced for trade functionsfor each day. It has further been explained that the incurred expenditure for relocating themachinery to its new site presents a minimal transition, which may not be permitted for anydeductions and thereby raises cost of depreciation. As cited in the “Taxation Ruling of TD 93/123” the expenses that are associated ininstalling the machine and initiation the process of manufacturing and discloses the profit andthereby leads to a rise in the benefit of the operations of the business (Watts 2015). Hence,according to “Section 8-1 of ITAA 1997” the relocation expenditure for the machinery in the
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