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Income Tax Assessment Act 199

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Added on  2020-04-07

Income Tax Assessment Act 199

   Added on 2020-04-07

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Running head: TAXATION LAWTaxation lawName of the UniversityName of the studentAuthors note
Income Tax Assessment Act 199_1
1TAXATION LAWTable of ContentsAnswer to Question 1......................................................................................................................2Answer to Question 2......................................................................................................................3Answer to Question 3:.....................................................................................................................5Answer to Question 4:.....................................................................................................................8References:....................................................................................................................................10
Income Tax Assessment Act 199_2
2TAXATION LAWAnswer to Question 1.The calculation of income tax is done by reducing the allowable expenses from theassessable income as per section 4-15 of the Income tax Assessment Act 199. According to 8-1(1) of the ITAA 199, deduction can be claimed by tax payers for the expenses that have beenincurred on following:Conducting any activities relating to business purposeFor assessable income gain or productionTherefore,1.If the machinery is used for earning an income that can be taxed, then only the expensesrelated to movement if machinery will be considered for deduction as per Section 8-1.Since the expense related to machinery relocation in case of Granite Supply AssociationLtd vKitton(1905) and Smith v Westinghouse Brake Company(1888) was of capitalnature, they would not be allowed for deduction (Barkoczy 2016).2.Cost uncured in assets revaluation cannot be regarded as deductible expenses undersection -1 of ITAA 1997.3.Expenditure incurred in opposing the wingding up of company and is related to lawfulprocedures will be regarded as expenditure that are deductible according to section 8-1.4.If solicitor expenditure is while carrying out business and earning income, then there willbe allowable deduction of such expenditure under section 8-1.Answer to Question 2.1.The input credit of GST is permissible in event of purchase done by businessorganization, when proper documentation of such transactions is maintained. A business
Income Tax Assessment Act 199_3

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