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Law Assignment | Utilization of Taxation Law

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Added on  2020-04-01

Law Assignment | Utilization of Taxation Law

   Added on 2020-04-01

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Running head: TAXATION LAWUTILIZATION OF TAXATION LAWName of the StudentName of the UniversityAuthors Note
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1UTILIZATION OF TAXATION LAWTable of ContentsAnswer of Question 1.................................................................................................................2Answer of part 1:....................................................................................................................2Answer of part 2:....................................................................................................................3Answer of part 3:....................................................................................................................4Answer of part 4:....................................................................................................................5Answer to Question 2:................................................................................................................6Conclusion:................................................................................................................................9Answer to question 3:...............................................................................................................10Answer to question 4:...............................................................................................................12References:...............................................................................................................................13
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2UTILIZATION OF TAXATION LAWAnswer of Question 1Answer of part 1: Issue Arised: Issue that arises here in this case is uncertainty with cost that can be incorporated inmoving machinery to a new site will be treated as acceptable deduction in regard to under lawsection section 8-1 of the ITAA 1997. Law used: a.Section 8-1 of the Income Tax Assessment Act 1997b.British Insulated & Helsby CablesApplication of the above law used: Cost incurred while locating machinery to the new site represents asset in nature andno acceptable deduction is allowed in this matter of 1 of the Income Tax Assessment Act1997. Moving machinery to new site during depreciation has incurred cost of asset1. Costoccurrence due to moving the machinery considers a cost that is incurred due to smallchanges and should be allowed as acceptable deductions under section 8-1 of the IncomeTax Assessment Act 1997. Reason behind incorporating the expenditure for acceptabledeductions is the cost incurred is part of business expenses of business operations.British Insulated & Helsby Cables verdict shows that cost that is implicated intransportation represents constant benefit on the business-related premises by shifting thedepreciable assets2. In agreement with Taxation Ruling of TD 93/126 that is on the setting up1Taylor, G. and Richardson, G., 2012. International corporate tax avoidance practices: evidence from Australian firms.The InternationalJournal of Accounting,47(4), pp.469-4962Tan, K.K. and Goh, L., 2013. Revenue and tax law.Singapore Academy of Law Annual Review of Singapore Cases, (Annual Review2013), p.490.
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3UTILIZATION OF TAXATION LAWof the machinery and evolution business activities the incidence of cost to bring the machinein operation will be treated as revenue. Conclusion Drawn: Conclusion drawn in this case is, cost incorporated while moving the machine to newsite represents movement of assets from one place to another will be taken as capitalexpenditure. Here no form of acceptable deductions will be legalized under section 8-1 of theIncome Tax Assessment Act 1997. Answer of part 2: Issue Arised: The situation that crop up here is regarding the revaluation of assets that affect thecover of insurance will be viewed as acceptable deductions under section 8-1 of the IncomeTax Assessment Act 19973. Law used: a.Section 8-1 of the Income Tax Assessment Act 1997Application: Here the scenario shows that spending have link with the fixed asset, thus inevaluating the deduction it is important to find whether expenses that is incurred whilerevaluating revenue production capacity holds or incurred while protecting the asset. Nowwhile protecting the assets provides benefit then it will be considered as acceptable deductionunder section 8-1 of the Income Tax Assessment Act 1997. Present state that cost incurred in3O'Connell, A., Martin, F. and Chia, J., 2013. Law, policy and politics in Australia's recent not-for-profit sector reforms.Austl. Tax F.,28,p.289.
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