HI3042 Taxation Law Principles

Added on -2020-02-23

| HI3042| 14 pages| 2540 words| 139 views

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Running head: PRINCIPLES OF TAXATION LAWPrinciples of Taxation LawName of the StudentName of the UniversityAuthors NoteCourse ID
1PRINCIPLES OF TAXATION LAWTable of ContentsAnswer to question 1:.................................................................................................................3Answer to scenario 1:.................................................................................................................3Issue:..........................................................................................................................................3Legislations:...............................................................................................................................3Applications:..............................................................................................................................3Conclusion:................................................................................................................................4Answer to Issue 2:......................................................................................................................4Issue:..........................................................................................................................................4Legislation:.................................................................................................................................4Application:................................................................................................................................4Conclusion:................................................................................................................................5Answer to scenario 3:.................................................................................................................5Issue:..........................................................................................................................................5Legislation:.................................................................................................................................5Application:................................................................................................................................5Conclusion:................................................................................................................................6Answer to scenario 4:.................................................................................................................6Issue:..........................................................................................................................................6Legislation:.................................................................................................................................6Application:................................................................................................................................6
2PRINCIPLES OF TAXATION LAWConclusion:................................................................................................................................7Answer to question 2:.................................................................................................................7Issue:..........................................................................................................................................7Legislation:.................................................................................................................................7Application:................................................................................................................................8Conclusion:................................................................................................................................9Answer to question 3:...............................................................................................................10Answer to question 4:...............................................................................................................11Reference List:.........................................................................................................................13
3PRINCIPLES OF TAXATION LAWAnswer to question 1: Answer to scenario 1: Issue: The question brings forward the question that is evidently linked with whether thecost that is sustained at the time of locating the machine to a new site shall be beheld as theadmissible deductions under section 8-1 of the ITAA 1997. Legislations: a.Section 8-1 of the ITAA 1997b.Taxation Ruling of TD 93/126c.British Insulated & Helsby CablesApplications: Taking into the considerations that is defined under the 8-1 of the ITAA 1997 theamount of cost involved in moving the assets from one spot to alternative spot would beconsidered, as capital in nature and no kind of permissible deductions shall be measured asacceptable under the above stated section (Coleman and Sadiq 2013). The expenditure mighthowever result in an increase in the cost of the asset for the purpose of depreciation(Barkoczy et al.2016). Any kind of cost that is sustained from the minor changes at the sitewould establish the cost as the deductible disbursement under section 8-1 of the ITAA1997”. This is because they form the part of the business expenditure resulting from the dayto day activities of carrying on of a business (Harriset al. 2016). In respect of the decision that is passed under the case of British Insulated & HelsbyCables the cost that is incurred at the time of transportation will be accounted in the form oflasting benefit on the commercial properties of the taxpayer’s by locating the depreciable

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