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The Income Tax Assessment Act 1997 | Assignment

   

Added on  2020-04-01

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Running head: TAXATION LAWTaxation LawStudent NameUniversity Name
The Income Tax Assessment Act 1997 | Assignment_1
TAXATION LAWAnswer 1Part 1IssueThe main issue here is whether the cost incurred in case of a moving machinery will be anallowable deduction or not as per “section 8-1 of ITAA 1997”Law“Section 8-1 of the Income Tax Assessment Act 1997”ApplicationAs per “Section 8-of ITAA 1997”, it can be inferred that the cost of moving machinery to a newplace will be considered as an allowable deduction for the purpose of depreciation. The movingmachinery has increased the cost of the asset and it should be allowable (Kabinga, 2015).ConclusionTherefore, it is concluded that the machinery will be treated as an allowable deduction.Part 2IssueThe main issue here is whether the cost incurred in case cost of revaluing assets to effectinsurance cover as per “section 8-1 of ITAA 1997”
The Income Tax Assessment Act 1997 | Assignment_2
TAXATION LAWLaw“Section 8-1 of the Income Tax Assessment Act 1997”ApplicationThe cost of revaluing assets to effect insurance cover will be treated as allowable expense as per“Section 8-1 of the Income Tax Assessment Act 1997” as the given expense is repetitive in natureand it is beneficial for a temporary basis (Saad, 2014).ConclusionTherefore, it is concluded that cost of revaluing assets to effect insurance cover will be treated asallowable expense as per ITAA, 1997.Part 3IssueThe main issue here is whether legal expense incurred by a company against a petition ofwinding up as per “section 8-1 of ITAA 1997”Law“Section 8-1 of the Income Tax Assessment Act 1997”ApplicationAll the business organizations need to pay up their costs of their operational process. In the givencase, if any kind of legal expense is incurred by the company then it is not considered as anyform of allowable deduction as per “Section 8-1 of the Income Tax Assessment Act 1997”
The Income Tax Assessment Act 1997 | Assignment_3

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