Taxation Law Assignment PDF

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

1TAXATION LAW
Table of Contents
Answer to Question 1.1:.............................................................................................................3
Issue:..........................................................................................................................................3
Rule:...........................................................................................................................................3
Application:................................................................................................................................3
Conclusion:................................................................................................................................4
Answer to question 1.2:..............................................................................................................4
Issue:..........................................................................................................................................4
Rule:...........................................................................................................................................4
Application:................................................................................................................................4
Answer to question 1.3:..............................................................................................................5
Issue:..........................................................................................................................................5
Rule:...........................................................................................................................................5
Application:................................................................................................................................5
Answer to question 1.4:..............................................................................................................6
Issue:..........................................................................................................................................6
Rule:...........................................................................................................................................6
Applications:..............................................................................................................................6
Conclusion:................................................................................................................................6
Answer to question 2:.................................................................................................................7
Issue:..........................................................................................................................................7

2TAXATION LAW
Rule:...........................................................................................................................................7
Applications:..............................................................................................................................7
Conclusion:................................................................................................................................8
Answer to question 3:.................................................................................................................8
Answer to question 4:...............................................................................................................11
List of references......................................................................................................................12

3TAXATION LAW
Answer to Question 1.1:
Issue:
The main question is on the aforementioned case has depicted whether the allowable
deductions needs to be permitted for relocation of machinery to a new site.
Rule:s
I. “Section 8-1 of the ITAA 1997”
II. “British Insulated & Helsby Cables”
III. “Taxation ruling of TD 92/126”
Application:
Based on the aforementioned rulings it has been determined that the taxpayer
cannot be held for allowable deductions as this has taken place based on their income
assessable. Under the rulings of “Section 8-1 of the ITAA”, relocating any machinery or
asset is an activity which results in an increased asset cost. Henceforth, as per the present
condition that expenses incurred for moving machinery cannot be considered for allowable
deductions as the activity has led to inflated cost of asset.
As studied in the case of “British Insulated & Helsby Cables”, the company has
taken advantage of relocating the depreciable asset to a new place which has been evident in
the aforementioned case. Based on the study of the case the “Taxation ruling of TD 92/126”
debate that the cost for out setting out setting of the new missionary is a part of the revenue is
directly comes under cost of capital and hence cannot be considered under permissible
deductions.