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Income-tax Assessment Act 1997 Assignment

   

Added on  2020-04-01

10 Pages1282 Words37 Views
Running head: TAXATIONTaxationName of the Student:Name of the University:Authors Note:
Income-tax Assessment Act 1997 Assignment_1
2TAXATIONTable of ContentsSolution to Question 1:.............................................................................................................3Solution to Question 2:.............................................................................................................4Solution to Question 3:.............................................................................................................6Solution to Question 4:.............................................................................................................9References................................................................................................................................10
Income-tax Assessment Act 1997 Assignment_2
3TAXATION Solution to Question 1:According to the taxation regulation mentioned under section 4-15 of the Income taxAssessment Act 1997 taxable earnings is enumerated by deduction of permissibleexpenditures from the assessable earnings (Pearson 2017). Essentially, a payer of tax isallowed to claim deduction under the directive mentioned under the taxation regulationsection 8-1(1) of the ITAA 1997 for expenditures that are borne for:-For generation or gaining assessable earnings-For undertaking activities associated to business (Pearce and Pinto 2015).Therefore it can be hereby stated that 1)As per section 8-1, expenditures for moving machinery can be taken into account forsubtraction only when the machinery is utilized for earning an income that isessentially taxable. As per case on Granite Supply Association Ltd vKittonof 190) aswell as Smith v Westinghouse Brake Companyof 1888, it was said that theexpenditures were borne for relocation of plants and expenses shall not be permittedfor deduction since the expenditures are capital in nature (Parker 2015). 2)The taxation directive stipulated under section 8-1 ITAA of 1997 mentions that therevaluation cost of a particular asset cannot be regarded as a deductible expend. 3)The taxation directive stipulated under section 8-1 mentions that any kind of expendrelated to legal proceedings that can resist the liquidation of the company can beregarded as a deductible expend (Davis et al. 2015). 4)According to regulation decree mentioned under section 8-1, expenditure incurred bya solicitor in a bid to earn business earning can be treated as a allowable deduction inthe process of calculation of tax (Cao et al. 2015).
Income-tax Assessment Act 1997 Assignment_3

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