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Australian Taxation Law Name of the University Student Name of the Student ID Author

   

Added on  2019-11-20

17 Pages2908 Words261 Views
Running head: AUSTRALIAN TAXATION LAW Australian Taxation LawName of the StudentName of the UniversityStudent IDAuthor Note

1AUSTRALIAN TAXATION LAW Table of ContentsAnswer to Question 1:.....................................................................................................................2Answer 1:.....................................................................................................................................2Issue:........................................................................................................................................2Legislations:.............................................................................................................................2Application:.............................................................................................................................2Conclusion:..............................................................................................................................3Answer 2:.....................................................................................................................................3Issue:........................................................................................................................................3Legislation:..............................................................................................................................3Application:.............................................................................................................................3Conclusion:..............................................................................................................................4Answer 3:.....................................................................................................................................4Issue:........................................................................................................................................4Legislation:..............................................................................................................................4Application:.............................................................................................................................5Answer 4:.....................................................................................................................................5Issue:........................................................................................................................................5Legislations:.............................................................................................................................6Application:.............................................................................................................................6Conclusion:..............................................................................................................................6

2AUSTRALIAN TAXATION LAW Answer to Question 2:.....................................................................................................................7Issue:............................................................................................................................................7Legislation:..................................................................................................................................7Application:.................................................................................................................................7Conclusion:..................................................................................................................................9Answer to Question 3:...................................................................................................................10Answer to Question 4:...................................................................................................................12References......................................................................................................................................13

3AUSTRALIAN TAXATION LAW Answer to Question 1: Answer 1: Issue: In the concerned issue, it is taken into account as to whether the cost which is incurred byan enterprise to move its machinery from one site to operation to a new site, shall be consideredas permissible deductions with respect to the “section 8-1 of the ITAA 1997”. Legislations: a.“Section 8-1 of the Income Tax Assessment Act 1997”b.“British Insulated & Helsby Cables” Application: As considered under the “section 8-1 of the ITAA 1997”, the expenditures of the firms,which are incurred by the organization, in order to relocate its machinery from one site toanother site are in general in the form of capital expenditures and therefore, these type ofexpenditures are not eligible for deductions. However, if the purpose of depreciation is taken,then the relocation of machineries to another site increases the cost of asset. The costs of movingmachineries, which represents that type of cost, which occurs from the small changes, areallowed as deductions under the same section. The reason behind this consideration of theexpenses as permissible deductions is that these are parts of business expenditures, which occurin daily commercial activities (Ato.gov.au, 2017). In this context, the case verdict of the “British Insulated & Helsby Cables”, can be takeninto account. According to this case study, the cost of transporting of the machineries is arepresentation of benefits in the commercial premises, which occurs due to the relocation of the

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