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Australia Taxation Law Assignment | ITAA Deductions

   

Added on  2020-04-01

9 Pages1196 Words57 Views
Running head: AUSTRALIA TAXATION LAWAustralia Taxation LawName of the Student:Name of the University:Authors Note:

1AUSTRALIA TAXATION LAWTable of ContentsQuestion 1: Discussing whether deductions are allowable under s 8-1 of ITAA 1997.............2Question 2: Big Bank Ltd..........................................................................................................3Question 3: Angelo’s income.....................................................................................................5Question 4: Johnny and Leon.....................................................................................................7Reference and Bibliography:......................................................................................................8

2AUSTRALIA TAXATION LAWQuestion 1: Discussing whether deductions are allowable under s 8-1 of ITAA 1997Under the section 8-1(1) of the ITAA 1997 income taxpayers are able to conductrelevant evaluation, which could help in claiming deductions from them. This section mainlyindicates relevant deductions that could be allowed for taxpayers. Furthermore, section 4-15of the Income tax Assessment Act 1997, directly states that taxable income can be reduced byconducting relevant deductions, which is allowable by the Australian government (Barkoczy2016).Under the section there are two types of deductions that could be conducted firstly forproducing a gaining assessable income, and for caring on the activity related to business. Therefore depicting whether the expenses is deductible in nature or not.1The first expenses are mainly identified, as the overall Machinery transferexpenses, which needs to be evaluated under the section 8-1 of ITAA 1997.Therefore, the machinery needs to be in working condition and used by theorganisation. Then the overall GST expenses are deductible under the act, whichcould directly consider under tax credit. there are relevant cases such as Smith vWestinghouse Brake Company (1888) and Granite Supply Association Ltd v Kitton(1905), where the overall expenditure conducted on relocating the plant isdeductible as expense and are not considered to be capital expenditure.2Relevant cost of revaluation of an asset is not considered, as a deductible expense,under the section 8-1 of ITAA 1997.3Under the section 8-1 of ITAA 1997 directly states that any kind of expenditureconducted on lawful proceedings, is considered to be under deductible expenditure.4Any kind of solicitor expenditure that is conducted by a business organisation forearning relevant income is mainly deductible in nature, Under the section 8-1 ofITAA 1997..

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